Abstract
Order picking in retail e-commerce fulfillment warehouses is characterized by a prevalence of single-unit picks and an expectation of quick order completion. This has motivated the use of scattered storage assignment strategy which spreads the stocks of each SKU across the warehouse. This research proposes entropy of stock arrangement as a new measure for scattering of stocks, and also introduces a storage assignment heuristic that aims to maximize the entropy to reduce the order picking effort. A simulation study is conducted to demonstrate the effectiveness of the heuristic and to provide managerial insights into designing a warehouse with scattered storage arrangement.
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