Modeling class-based storage assignment over life cycle picking patterns

Modeling class-based storage assignment over life cycle picking patterns

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Article ID: iaor201530039
Volume: 170
Start Page Number: 790
End Page Number: 800
Publication Date: Dec 2015
Journal: International Journal of Production Economics
Authors: , , ,
Keywords: economics, simulation, inventory, combinatorial optimization, inventory: storage
Abstract:

This paper aims to introduce a new approach for the design and management of warehousing systems, which involves variable demand patterns in agreement with the life cycle of stock keeping units (SKUs). Two cost-based mixed integer linear programming (MILP) models are formulated to address both the technology selection, e.g. part-to-picker systems (as automated storage and retrieval systems - AS/RS, miniloads, etc.) and picker-to-part order picking systems, and the SKU assignment to the storage areas. In particular, a class based storage assignment over a life cycle picking metric is adopted. This metric is a rolling measure of popularity. The proposed approach, the adopted measure of popularity and the developed models can support (1) decision making for the selection of warehousing and material handling (W&MH) systems, (2) the determination of the storage capacity for the storage classes, (3) the assignment of SKU to the storage classes and (4) the dynamic, i.e., time-based, management of re-warehousing handlings. Two significant numerical examples illustrate the application and the potential of the proposed approach and models.

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