Rearranging Of Item Locations To Reduce Traveling Distance A Case Study In Construction Material (Granite Tile) Industry

Abstract

Order picking is the process by which products are retrieved from stocking locations in a warehouse. This process is considered as the most consuming labor and time among all of the warehousing. One of the most fundamental issue in warehouse nowadays is the optimization of storage location of the products. Cost reduction in the order picking process can be optimized if the products are arranged logically within the warehouse. Therefore, this thesis will focus mainly on storage location of all the items inside the warehouse. Specifically, a combination of strategies: correlated storage assignment strategy, routing policy and order batching formulation, which are used to enhance the efficiency of improving order picking process. This can allow for great reduction in total travel distance required in a picking, which can result in the reduction of labor cost but also the customer’s order delivery time.