Improving Stocking Policy By Simulating The Current Status And Optimizing Arrangement Items

Abstract

This thesis addressed a problem of long picking time in the warehouse, which is an issue that the numerous of warehouses avoid. The thesis used discrete event dynamic simulation to simulate the whole operation of picking items to figure out the bottleneck. After knowing the bottleneck, the total travelled time in one month was calculated in Excel. The main purpose of this thesis is to improve the warehouse’s efficiency and reduce the average waiting time by resolving the Storage Location Assignment Problem (SLAP) to minimize the monthly travelled time in the warehouse. CPLEX will be used to solve a mixed-integer linear to achieve the objective. The result will be analyzed and the new layout which is recommended by CPLEX will be shown in the result part. By implementing this model, the results indicate that the time travelled in the warehouse can be reduced in more than 2000 minutes by just reallocating items in different locations.