Optimize Warehouse Layout By Using Particle Swarm Algorithm : Case Study In Retail Industry

Abstract

Warehouse operation is an essential component of the retail industry. One key factor impacting warehouse operations' effectiveness is the layout design. In this study, the layout is investigated in terms of aisle layout and shelf configuration in a distribution center where products from different suppliers are gathered, stored for a specific duration, then delivered to various customers. Piece and pack pickings are mainly serviced at the distribution center. The purpose of the study is to design a warehouse shelf configuration to minimize the annual material handling cost. The picking frequency and weight of products are taken into account when placing or picking from the shelves regarding to the distances between the shelves and the docks. A particle swarm optimization algorithm is proposed as a novel heuristic approach to find the optimal layout. The result shows that changes in the number of docks, the material handling unit cost, and the yearly throughput do not make a change in the shelf configuration except the annual handling cost.