Use statistical analysis to approximate integrated order batching problem

Abstract

This paper highlights the tight relationship between the picking and packing processes in warehouse management and the need to consider them as an integrated problem. The study describes and models this integrated problem as a mixed-integer programming model, to optimise overall labour costs by determining the assignment of the subsets of orders, i.e. batches, for picking and packing. To address the issue of model complexity, the paper presents a statistical-based framework for generating approximate models and selecting the optimal one through examination. Based on the examination results, a pair-swapping heuristic is additionally proposed to be combined as a hybrid algorithm. Numerical experiments based on a real-world case demonstrate the effectiveness of the framework-proposed and selected hybrid algorithm by comparison with other framework-proposed approximate models, a solver, and existing heuristics. Our findings indicate that the combined usage of integrated picking and packing processes planning and the hybrid algorithm proposed and selected within the statistical-based framework can effectively reduce the cost of warehouse management.