Design of the Federal Express large package sort facility

In this paper, two mixed integer programming models, the Aggregate Bin Assignment Model (ABAM) and Aggregate Rack Assignment Model (ARAM), are developed for the analysis of possible large package sort facility designs for Federal Express Corporation. Applying the ABAM and ARAM algorithm on the current topological design of the sort facility reduces the number of forklifts and total forklift travel time for accomplishing the sort by about 20%. Tests on 16 other configurations proposed by Federal Express indicated that savings of 33% with respect to the number of forklifts required and over 50% in the total forklift travel time when compared to the existing operations can be achieved.