An efficiency measurement model for a computerized warehousing system

This paper introduces a model for efficient utilization of warehouse personnel in an inventory selection process. A simple mathematical model, based on a time study that can be applied to establishing standards for efficiency measurement of labour in a warehouse setting is presented. The problem of determining a standard to compute performance in an environment with variable workload is solved by using an adjustable standard for each particular assignment. Specifically the proposed model is designed to estimate the time required to complete a picking cycle. Three time components are considered; the lead time, travel time, and non-efficient time. The results of an empirical study are used to set the values of system parameters.

The use of a computer system that can generate order lists is essential for an effective application of this methodology. Useful information can be obtained that can aid managers in formulating and implementing incentive plans and for controlling the labour cost which represents a major proportion of the total cost in warehouse operation.