Abstract
We consider a distribution center in which the warehouses is divided into a fast picking (forward) area and a reserve area. In this configuration, the most demanded items or items to be imminently distributed are stored in forward area while reserve area stores goods in pallets or bulk. Placing sufficient inventory in most convenient locations in the forward area results in less travels and less stockout. This paper proposes an approach to reduce the number of stockouts in the forward area while decrease the total traveled distance and discusses the results of a simulation model developed for a real distribution center in which the proposed approach is implemented.
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