Order Picking Route Optimization By Vehicle Routing And Simulation: A Case Study Of Viet Dang Dental Medical Equipment Joint Stock Company

Abstract

Order picking is an essential component in supply chain management recognized as one of the most demanding activities regarding time, labor, and cost in most warehouses. Order fulfillment is constrained by a predefined timeline set by the customer, and any inefficiencies in the warehouse order picking process can affect the entire supply chain. This paper focuses on optimizing routing for order picking in a warehouse to reduce travel time and distance. Initially, we conduct a thorough examination and simulation of the current warehouse order picking process and realize that wasted time during the picking step. Consequently, we propose a straightforward vehicle routing approach combined with a distance matrix to determine an optimal order picking route, solved using the Cplex programming language. The optimized route is then used to improve the simulation model of the original warehouse picking process. The average time results of the order picking process will be compared between the simulation model integrated with the optimal route from the VRP mathematical model with the results of the actual system and the original simulation model. We show that the proposed the simulation model with vehicle routing based approach outperforms the real system and the original simulation model by 14.61% and 19,24%, respectively .In addition, a graphical user interface is created to help warehouse staff determine the picking route according to the vehicle routing method, thereby saving time and increasing optimization for the entire picking process in the warehouse.