An application of heuristic algorithms for determining inventory location in a distribution warehouse

This research developed heuristic algorithms that integrated human warehouse expertise and a computerized system to aid in selecting highly efficient storage locations in a food distribution warehouse utilizing pallet jack order picking vehicles and a single traversal order picking policy. Examining and quantifying the current decision logic that determined item location within the warehouse was the basis for designing the heuristic rules. Simultaneous optimization of these factors formed the base algorithms. Additional algorithms developed strategies to reduce the probability of mispicks and address ergonomic considerations in slot selection. In a limited simulation study, the layouts generated by the algorithms decreased total picking time and traveling distance by more than 10% and 20% respectively compared to a random assignment layout. Additional benefits included a reduction in mispick rates and an improved ergonomic environment.