Efficient Order Picking in a Warehouse with Double Demand Seasonality

Abstract

In this paper we highlight the advantages of adopting a broad simulation model of material flows as a useful foundation for developing system support for warehouse procedures that use WMS. The warehouse under consideration has a rectangular shape with parallel lanes and operates in two distinct seasons, necessitating different storage methods. The modified simulation model incorporates several strategies to enhance efficiency. Firstly, the S-shape routing technique is employed to optimize the movement of order pickers within the warehouse, minimizing travel time and increasing productivity. Additionally, a return technique is integrated to minimize empty travel distance, further reducing operational costs. Storage assignment within the warehouse is determined based on the frequency of item occurrence and the required storage technology. To establish an effective layout for each season, the study examines historical demand data and utilizes ABC analysis to classify goods. This dual layout design approach accounts for the unique demand patterns of each season, enabling the warehouse to maximize storage capacity and minimize operational bottlenecks. By considering elements such as seasonal demand, storage technologies, labor routing, and product classification, this research provides valuable insights for improving order picking efficiency, reducing costs, and enhancing customer service in seasonal warehouses. Implementing the proposed simulation-based technique can empower businesses to optimize their operations and thrive amidst changing market conditions, ultimately leading to increased profitability and customer satisfaction.