Order picking problem - A case study in YCH company

Abstract

In warehouse operation, orders with many product varieties in small quantities are often received and requested for time delivery. However, the order picking process will be very wasteful and costly if pickers handle those small orders separately. In this thesis, a mathematical model is proposed to assist grouping orders into a batch, then the distance to pick orders will be calculated, before and after using the model. The CPLEX and Excel will be used to build the model and solve the problem. Through the proposed model, all received orders will be divided into batches to minimize the distance travel. To prove the realistic of the model, a case in the YCH company is presented, and the outcomes from the mathematical model provide a better situation, which the order picking process can be better arranged. Keywords: Order Picking problem, Order Batching, Mathematical model, CPLEX, Excel.