A novel framework for production planning and class-based storage location assignment: Multi-criteria classification approach

Abstract

Efficient warehouse management is essential for optimizing inventory, minimizing transportation costs, and enhancing overall performance. This research introduces a novel Mixed-Integer Nonlinear Programming (MINLP) model to address the Storage Location Assignment Problem (SLAP) in warehouse management. Integrating multi-criteria decision-making with strategic production planning, our model advances warehouse operations by allocating storage locations to products strategically, focusing on reducing transportation distances and maximizing storage efficiency. The distinctive innovation of this study is the nuanced application of the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) results to strategic storage location assignments, enhancing the model's capability to consider a comprehensive evaluation of inventory attributes, including physical characteristics and perishability. This approach evolves TOPSIS's application in warehouse management, enabling it to consider both physical characteristics and perishability of products. The outcomes of TOPSIS, including product classifications and preferences, serve as vital inputs to the mathematical model, facilitating a comprehensive evaluation of storage locations that encompasses spatial, demand-related, and physical aspects of inventory. Additionally, our research introduces a versatile decision support system, adaptable to various operational requirements. This system enhances practical decision-making in warehouse management, accommodating scenarios based on single or multiple criteria, including the cube-per-order index (COI). The research results highlight the significant impact of this innovative approach in enhancing warehouse management. By addressing the complexities of storage location assignment and integrating multiple criteria, we achieve more efficient and cost-effective warehouse operations. The approach has been shown to be adaptable and practical, making it a valuable contribution to the field of logistics and warehouse management.