Optimization Of The Warehouse Operation - Order Picking: A Case Of Scancom Song Than

Abstract

Order picking has long been identified as the most labour-intensive and costly activity for almost every warehouse; the cost of order picking is estimated to be as much as 55% of the total warehouse operating expense. Any underperformance in order picking can lead to unsatisfactory service and high operational cost for its warehouse, and consequently for the whole supply chain. In order to operate efficiently, the order picking process needs to be robustly designed and optimally controlled. This thesis aim to build a model to solve the Picker Routing Problem (PRP), which optimize the routing method for ScanCom Supplies warehouse, based on the model of Capacited Vehicle Routing Problem with Time Windows (CVRPTW) with adjustment and supplement to constraints to make the model became feasible and applicable to the company case study.