Evaluating order picking performance trade-offs by configuring main operating strategies in a retail distributor: A Design of Experiments approach

Abstract

Warehouse design has become important due to its impact on service to customers and total logistics costs. Order picking is the key activity of a warehouse and an appropriate design will directly affect its overall performance. The increasing complexity of warehouses means that the main operating strategies such as storage location assignment, batching and routing need to be considered simultaneously. A Design of Experiment approach aided by Discrete Event Simulation could help to meet these new picking design process requirements, especially when various performance measures need to be compared. Some of the trade-offs that managers must keep in mind when designing order picking systems are shown, describing a single-case study carried out at a retail distributor.