Optimization Of Integrated Order Batching And Storage Assignment Problem: A Case Study Of Transimex Warehouse

Abstract

Warehouse operations have a significant influence on total logistics costs and supply chain network. As a result, they should be optimized in a reasonable way to reduce the detrimental impact they may cause. The goal of this paper is to rebuild a cold warehouse, especially ice cream storage, in order to maximize their operating process. The ABC analysis approach is used to categorize warehouse products based on their frequency and weight. Then, based on the demand relationship, the Quadratic Assignment Problem is used to assign storage locations for products to reduce total distance for transporting them in the warehouse. A mathematical model is also suggested to aid in batching orders, and both before and after utilizing the model, the distance to pick orders will be estimated. Through the proposed model, all received orders will be divided into batches to minimize the distance traveled. To solve the model, Python and CPlex were used as the optimization solvers for small, medium, and large problem instances and the results were reported