Picking routing policies to improve warehouse efficiency: A case study at Nestle south distribution center

Abstract

Order picking is widely recognized as one of the most challenging and resource intensive activities in warehouses, impacting time, labor, and costs. In light of this, this research focuses on improving the efficiency of warehouse operations at Nestle South Distribution Center through the implementation of picking routing policies. In particular, this study utilizes the Vehicle Routing Problem (VRP) methodology to calculate the optimized distance traveled by pickers, taking into account a randomly generated set of order picking locations. These results are then compared against alternative routing policies, including S-shape, largest gap, combined, and optimal approaches. The primary aim is to determine the most suitable and feasible routing policy to be adopted within the facility system of Nestle South Distribution Center. The study's outcomes are intended to provide practical guidance not only to distribution center managers at Nestle South but also to the broader industry as a whole. Moreover, this research makes a valuable contribution to the existing body of literature on warehouse optimization and routing policies.