Product Reallocation Using Milp: A Case Study Of Gemadept Company

Abstract

Managing order picking procedures has become more challenging as a result of recent market trends. The effectiveness of warehouse operations has a significant impact on supply chain efficiency. The processes involved in the management and disposition of inventories are essential because of this. The Storage Location Assignment Problem (SLAP) is a significant optimization problem that arises in a number of fields, including inventory management, transportation, and warehousing. The SLAP involves determining the best position for each item to be stored within a facility. This thesis addresses the SLAP using Mixed Integer Linear Programming (MILP) techniques considering the warehouse layout, item characteristics, storage capacity. In order to enhance the picking operation and shorten the travel distance associated with the routes of the warehouse, this work considers minimizing the total distance travel while addressing the multi-level storage locations assignment problem for SKU pallets. Additionally, sensitivity analysis is performed to investigate the impact of various problem parameters on the optimal storage assignments. This analysis provides insights into the robustness of the proposed model and helps identify critical factors influencing storage allocation decisions. The study's findings offer a MILPbased framework for decision-making in warehouse and logistics operations, which advances the area of storage site assignment. The developed models and solution approaches offer valuable insights to practitioners seeking to optimize their storage assignment strategies and improve operational performance in terms of cost reduction and resource utilization.