Abstract
Product allocation is one of the most important duties in warehousing operations. Based on the time and the number of products to put away and retrieve, storage allocation can directly affect the efficiency of a warehouse in terms of both response and operation time. Traditionally, the product storage allocation is done based on the less distance of shipment but focusing on distance may decrease the efficiency of a warehouse in terms of efficient utilization of resources such as warehouse inbound shipping fleet. This paper proposes a storage space allocation model that considers the availability of forklift fleet in a warehouse instead of product shipping distance. The numerical example shows that storing the products based on the proposed model can reduce the volume of forklift fleet idle hours on days with fewer volume of receiving and shipping outs. The proposed model also reduces the overtime working hours on days with higher volume of receiving and shipping out products.
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