IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v68y2022i10p7497-7517.html
   My bibliography  Save this article

Optimal Picking Policies in E-Commerce Warehouses

Author

Listed:
  • Maximilian Schiffer

    (School of Management, Technical University of Munich, 80333 Munich, Germany; Munich Data Science Institute, Technical University of Munich, 80333 Munich, Germany)

  • Nils Boysen

    (Operations Management, Friedrich Schiller Universität Jena, 07743 Jena, Germany)

  • Patrick S. Klein

    (School of Management, Technical University of Munich, 80333 Munich, Germany)

  • Gilbert Laporte

    (HEC Montréal, Montréal, Quebec H3T 2A7, Canada; School of Management, University of Bath, Bath BA2 7AY, United Kingdom)

  • Marco Pavone

    (Department of Aeronautics and Astronautics, Stanford University, Stanford, California 94035)

Abstract

In e-commerce warehouses, online retailers increase their efficiency by using a mixed-shelves (or scattered storage) concept, where unit loads are purposefully broken down into single items, which are individually stored in multiple locations. Irrespective of the stock keeping units a customer jointly orders, this storage strategy increases the likelihood that somewhere in the warehouse the items of the requested stock keeping units will be in close vicinity, which may significantly reduce an order picker’s unproductive walking time. This paper optimizes picker routing through such mixed-shelves warehouses. Specifically, we introduce a generic exact algorithmic framework that covers a multitude of picking policies, independently of the underlying picking zone layout, and is suitable for real-time applications. This framework embeds a bidirectional layered graph algorithm that provides the best known performance for the simple picking problem with a single depot and no further attributes. We compare three different real-world e-commerce warehouse settings that differ slightly in their application of scattered storage and in their picking policies. Based on these, we derive additional layouts and settings that yield further managerial insights. Our results reveal that the right combination of drop-off points, dynamic batching, the utilization of picking carts, and the picking zone layout can greatly improve the picking performance. In particular, some combinations of policies yield efficiency increases of more than 30% compared with standard policies currently used in practice.

Suggested Citation

  • Maximilian Schiffer & Nils Boysen & Patrick S. Klein & Gilbert Laporte & Marco Pavone, 2022. "Optimal Picking Policies in E-Commerce Warehouses," Management Science, INFORMS, vol. 68(10), pages 7497-7517, October.
    • Handle: RePEc:inm:ormnsc:v:68:y:2022:i:10:p:7497-7517
    DOI: 10.1287/mnsc.2021.4275
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.2021.4275
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.2021.4275?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Weidinger, Felix & Boysen, Nils & Schneider, Michael, 2019. "Picker routing in the mixed-shelves warehouses of e-commerce retailers," European Journal of Operational Research, Elsevier, vol. 274(2), pages 501-515.
    2. Žulj, Ivan & Kramer, Sergej & Schneider, Michael, 2018. "A hybrid of adaptive large neighborhood search and tabu search for the order-batching problem," European Journal of Operational Research, Elsevier, vol. 264(2), pages 653-664.
    3. Goetschalckx, M. & Ratliff, H. D., 1988. "An efficient algorithm to cluster order picking items in a wide aisle," Engineering Costs and Production Economics, Elsevier, vol. 13(4), pages 263-271, April.
    4. Cambazard, Hadrien & Catusse, Nicolas, 2018. "Fixed-parameter algorithms for rectilinear Steiner tree and rectilinear traveling salesman problem in the plane," European Journal of Operational Research, Elsevier, vol. 270(2), pages 419-429.
    5. Jérémie Gallien & Théophane Weber, 2010. "To Wave or Not to Wave? Order Release Policies for Warehouses with an Automated Sorter," Manufacturing & Service Operations Management, INFORMS, vol. 12(4), pages 642-662, September.
    6. H. Donald Ratliff & Arnon S. Rosenthal, 1983. "Order-Picking in a Rectangular Warehouse: A Solvable Case of the Traveling Salesman Problem," Operations Research, INFORMS, vol. 31(3), pages 507-521, June.
    7. Boysen, Nils & Fedtke, Stefan & Weidinger, Felix, 2018. "Optimizing automated sorting in warehouses: The minimum order spread sequencing problem," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 126183, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    8. Roodbergen, Kees Jan & de Koster, Rene, 2001. "Routing order pickers in a warehouse with a middle aisle," European Journal of Operational Research, Elsevier, vol. 133(1), pages 32-43, August.
    9. Weidinger, Felix & Boysen, Nils & Schneider, Michael, 2019. "Picker routing in the mixed-shelves warehouses of e-commerce retailers," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 126182, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    10. de Koster, Rene & Le-Duc, Tho & Roodbergen, Kees Jan, 2007. "Design and control of warehouse order picking: A literature review," European Journal of Operational Research, Elsevier, vol. 182(2), pages 481-501, October.
    11. Boysen, Nils & Fedtke, Stefan & Weidinger, Felix, 2018. "Optimizing automated sorting in warehouses: The minimum order spread sequencing problem," European Journal of Operational Research, Elsevier, vol. 270(1), pages 386-400.
    12. Felix Weidinger & Nils Boysen, 2018. "Scattered Storage: How to Distribute Stock Keeping Units All Around a Mixed-Shelves Warehouse," Service Science, INFORMS, vol. 52(6), pages 1412-1427, December.
    13. Weidinger, Felix, 2018. "Picker routing in rectangular mixed shelves warehouses," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 126186, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    14. Weidinger, Felix & Boysen, Nils, 2018. "Scattered Storage: How to Distribute Stock Keeping Units All Around a Mixed-Shelves Warehouse," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 126188, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    15. Daniels, Richard L. & Rummel, Jeffrey L. & Schantz, Robert, 1998. "A model for warehouse order picking," European Journal of Operational Research, Elsevier, vol. 105(1), pages 1-17, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gámez Albán, Harol Mauricio & Cornelissens, Trijntje & Sörensen, Kenneth, 2024. "A new policy for scattered storage assignment to minimize picking travel distances," European Journal of Operational Research, Elsevier, vol. 315(3), pages 1006-1020.
    2. Saylam, Serhat & Çelik, Melih & Süral, Haldun, 2024. "Arc routing based compact formulations for picker routing in single and two block parallel aisle warehouses," European Journal of Operational Research, Elsevier, vol. 313(1), pages 225-240.
    3. Boysen, Nils & Stephan, Konrad & Schwerdfeger, Stefan, 2024. "Order consolidation in warehouses: The loop sorter scheduling problem," European Journal of Operational Research, Elsevier, vol. 316(2), pages 459-472.
    4. Pardo, Eduardo G. & Gil-Borrás, Sergio & Alonso-Ayuso, Antonio & Duarte, Abraham, 2024. "Order batching problems: Taxonomy and literature review," European Journal of Operational Research, Elsevier, vol. 313(1), pages 1-24.
    5. Ding, Tianrong & Zhang, Yuankai & Wang, Zheng & Hu, Xiangpei, 2024. "Velocity-based rack storage location assignment for the unidirectional robotic mobile fulfillment system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 186(C).
    6. Boysen, Nils & Schwerdfeger, Stefan & W． Ulmer, Marlin, 2023. "Robotized sorting systems: Large-scale scheduling under real-time conditions with limited lookahead," European Journal of Operational Research, Elsevier, vol. 310(2), pages 582-596.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boysen, Nils & de Koster, René & Weidinger, Felix, 2019. "Warehousing in the e-commerce era: A survey," European Journal of Operational Research, Elsevier, vol. 277(2), pages 396-411.
    2. Laura Korbacher & Katrin Heßler & Stefan Irnich, 2023. "The Single Picker Routing Problem with Scattered Storage: Modeling and Evaluation of Routing and Storage Policies," Working Papers 2302, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    3. Gámez Albán, Harol Mauricio & Cornelissens, Trijntje & Sörensen, Kenneth, 2024. "A new policy for scattered storage assignment to minimize picking travel distances," European Journal of Operational Research, Elsevier, vol. 315(3), pages 1006-1020.
    4. Katrin Heßler & Stefan Irnich, 2023. "Exact Solution of the Single Picker Routing Problem with Scattered Storage," Working Papers 2303, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    5. Çelik, Melih & Archetti, Claudia & Süral, Haldun, 2022. "Inventory routing in a warehouse: The storage replenishment routing problem," European Journal of Operational Research, Elsevier, vol. 301(3), pages 1117-1132.
    6. Yang, Peng & Zhao, Zhijie & Guo, Huijie, 2020. "Order batch picking optimization under different storage scenarios for e-commerce warehouses," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    7. Arbex Valle, Cristiano & Beasley, John E, 2020. "Order batching using an approximation for the distance travelled by pickers," European Journal of Operational Research, Elsevier, vol. 284(2), pages 460-484.
    8. Mustapha Haouassi & Yannick Kergosien & Jorge E. Mendoza & Louis-Martin Rousseau, 2022. "The integrated orderline batching, batch scheduling, and picker routing problem with multiple pickers: the benefits of splitting customer orders," Flexible Services and Manufacturing Journal, Springer, vol. 34(3), pages 614-645, September.
    9. Boysen, Nils & de Koster, René & Füßler, David, 2021. "The forgotten sons: Warehousing systems for brick-and-mortar retail chains," European Journal of Operational Research, Elsevier, vol. 288(2), pages 361-381.
    10. David Füßler & Nils Boysen & Konrad Stephan, 2019. "Trolley line picking: storage assignment and order sequencing to increase picking performance," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(4), pages 1087-1121, December.
    11. Dominik Goeke & Michael Schneider, 2021. "Modeling Single-Picker Routing Problems in Classical and Modern Warehouses," INFORMS Journal on Computing, INFORMS, vol. 33(2), pages 436-451, May.
    12. Weidinger, Felix & Boysen, Nils & Schneider, Michael, 2019. "Picker routing in the mixed-shelves warehouses of e-commerce retailers," European Journal of Operational Research, Elsevier, vol. 274(2), pages 501-515.
    13. Su, Yixuan & Zhu, Xi & Yuan, Jinlong & Teo, Kok Lay & Li, Meixia & Li, Chunfa, 2023. "An extensible multi-block layout warehouse routing optimization model," European Journal of Operational Research, Elsevier, vol. 305(1), pages 222-239.
    14. Xie, Lin & Li, Hanyi & Luttmann, Laurin, 2023. "Formulating and solving integrated order batching and routing in multi-depot AGV-assisted mixed-shelves warehouses," European Journal of Operational Research, Elsevier, vol. 307(2), pages 713-730.
    15. Rajabighamchi, Farzaneh & van Hoesel, Stan & Defryn, Christof, 2023. "Graph reduction for the planar Travelling Salesman Problem," Research Memorandum 004, Maastricht University, Graduate School of Business and Economics (GSBE).
    16. Onal, Sevilay & Zhu, Wen & Das, Sanchoy, 2023. "Order picking heuristics for online order fulfillment warehouses with explosive storage," International Journal of Production Economics, Elsevier, vol. 256(C).
    17. AERTS, Babiche & CORNELISSENS, Trijntje & SÖRENSEN, Kenneth, 2022. "The internal warehouse replenishment problem: the importance of storage and replenishment policies," Working Papers 2022007, University of Antwerp, Faculty of Business and Economics.
    18. Zhong, Shuya & Giannikas, Vaggelis & Merino, Jorge & McFarlane, Duncan & Cheng, Jun & Shao, Wei, 2022. "Evaluating the benefits of picking and packing planning integration in e-commerce warehouses," European Journal of Operational Research, Elsevier, vol. 301(1), pages 67-81.
    19. Nilendra Singh Pawar & Subir S. Rao & Gajendra K. Adil, 2024. "Improving Order-Picking Performance in E-Commerce Warehouses through Entropy-Based Hierarchical Scattering," Sustainability, MDPI, vol. 16(14), pages 1-27, July.
    20. Li, Xiaowei & Hua, Guowei & Huang, Anqiang & Sheu, Jiuh-Biing & Cheng, T.C.E. & Huang, Fengquan, 2020. "Storage assignment policy with awareness of energy consumption in the Kiva mobile fulfilment system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:68:y:2022:i:10:p:7497-7517. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.