An adaptive large neighborhood search for the order picking process: the case of a retail distribution company in Italy

Abstract

Order picking is one of the most important activities in warehouse management. By optimising the picking process, warehouse operations can be managed efficiently in terms of both time and logistics costs. In this work we apply operations research techniques to support the order picking process of an Italian retail distribution company. The picking process poses several challenges from an optimisation point of view, and the related optimization problems are very complex. Therefore, we define an Adaptive Large Neighbourhood Search (ALNS) algorithm that heuristically solves the problem. The proposed metaheuristic is tested on a set of 101 real orders processed by the company within one day. The computational experiments show that the ALNS shows good performances in terms of effectiveness, compared to the optimal solution, as well as allows to implement a better organisation of the order picking process than the one currently adopted by the company.