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Improving product location and order picking activities in a distribution centre

Author

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  • J Renaud

    (Interuniversity Research Centre on Enterprise Networks, Logistics and Transportation (CIRRELT), Laval University
    Laval University)

  • A Ruiz

    (Interuniversity Research Centre on Enterprise Networks, Logistics and Transportation (CIRRELT), Laval University
    Laval University)

Abstract

This article examines the effect of different product location strategies on the distance that order pickers must cover to do their job. This distance is an important cost component in warehousing activities. Our empirical study is based on a real industrial setting, in which the products are located on both sides of a conveyor belt. We show that choosing the right product location strategy allows the current picking distance to be reduced more than 10%. We also propose a post-optimization procedure that can further reduce picking distances—up to 20% of the current distances. Through a study of the routing strategy used to dispatch pickers, we demonstrate that solving a simple travelling salesman problem can further reduce distances up to 13%, compared with the distances incurred using a predetermined route. We show that reductions of up to 27% compared to current picking distances are possible if our product location and routing methods are combined.

Suggested Citation

  • J Renaud & A Ruiz, 2008. "Improving product location and order picking activities in a distribution centre," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(12), pages 1603-1613, December.
    • Handle: RePEc:pal:jorsoc:v:59:y:2008:i:12:d:10.1057_palgrave.jors.2602514
    DOI: 10.1057/palgrave.jors.2602514
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    References listed on IDEAS

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    1. Petersen, Charles G. & Aase, Gerald, 2004. "A comparison of picking, storage, and routing policies in manual order picking," International Journal of Production Economics, Elsevier, vol. 92(1), pages 11-19, November.
    2. Laporte, Gilbert, 1992. "The traveling salesman problem: An overview of exact and approximate algorithms," European Journal of Operational Research, Elsevier, vol. 59(2), pages 231-247, June.
    3. Helsgaun, Keld, 2000. "An effective implementation of the Lin-Kernighan traveling salesman heuristic," European Journal of Operational Research, Elsevier, vol. 126(1), pages 106-130, October.
    4. Rouwenhorst, B. & Reuter, B. & Stockrahm, V. & van Houtum, G. J. & Mantel, R. J. & Zijm, W. H. M., 2000. "Warehouse design and control: Framework and literature review," European Journal of Operational Research, Elsevier, vol. 122(3), pages 515-533, May.
    5. 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.
    6. 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.
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    Cited by:

    1. Chen, Gang & Feng, Haolin & Luo, Kaiyi & Tang, Yanli, 2021. "Retrieval-oriented storage relocation optimization of an automated storage and retrieval system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).

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