The impact of routing and storage plans on warehouse efficiency

Abstract Order picking, the activity by which lots of goods are retrieved from a warehousing system to gratify lots of customer orders, is an essential website link in the resource chain and is also the major cost component of warehousing. The critical issue is to simultaneously decrease the cost and improve the velocity of the order picking activity. The main objectives of this paper are: assess various routing heuristics and an maximum routine in a volume-based and random storage environment; compare the performance of volume-based storage area to random safe-keeping; and take a look at the impact of travel speed and picking rates on routing and storage policy performance. The experimental results show the answer difference between routing heuristics and optimum routing is highly dependent on the travel acceleration and picking rate, the storage space policy, and the size of the go with list. Furthermore, volume-based storage produced significant cost savings over random storage space, but again these personal savings are dependent on the travel swiftness and picking rate.

Keyword(s): Supply-chain management; Warehousing; Order picking; Heuristics.

Introduction

Order picking, the selection of items of their warehouse storage area locations to load customer orders, is the most costly activity in a typical warehouse. Although order picking appears to be a relatively simple function to perform, there are several factors that greatly impact the performance and efficiency of the get operation. These factors are the demand style of the things, the construction of the warehouse, the location of the things in the warehouse, the picking approach to retrieving the items and consolidating those items into customer orders, and the routing method employed by the pickers to look for the sequence of the things to be selected. This paper focuses on the storage of the warehoused items and the routing of the employees to get those items because of their respective customer requests.

Storage

Storage plans assign items to warehouse safe-keeping locations. Items may be assigned arbitrarily, or similar items may be grouped in the same area of the warehouse, or items may be allocated based on order or picking volume. Volume-based safe-keeping places high amount items near the pick-up/drop-off (p/d) indicate lessen picker travel. Volume-based storage space is particularly noteworthy as it ends in less picker travel (Coyle et al. , 1996). It really is because of this that this newspaper specializes in volume-based storage. Used, many warehouses use arbitrary safe-keeping and use volume-based storage space for just a few high volume level items.

In volume-based storage space, items are assigned storage locations predicated on the expected volume level, usually with high amount items located closest to the p/d point. Since it is rare that demand is well known with certainty, items are found in the warehouse based on their expected quantity. The benefit of volume-based storage area is the decrease in travel time and distance. However, aisle congestion and an unbalanced utilization of the warehouse can direct result.

Random storage implies that items are randomly assigned to an individual location for the whole planning horizon. The advantages of random storage will be the uniform usage of the warehouse and reduced aisle congestion. The downside is the possibility of large travel times from having to traverse the entire warehouse. Random storage area is the most frequent storage policy used in warehouses today even though it results in longer pick and choose routes than volume-based safe-keeping.

The research on warehouse safe-keeping policies is fairly limited. Schwarz et al. (1978) examined the performance of the programmed warehouse with random and volume-based storage area. In addition, Gibson and Sharp (1992) and Grey et al. (1992) found that locating high size items near to the p/d point results a significant increase in picking efficiency. However, they don't provide information on the implementation of volume-based storage. Jarvis and McDowell (1991) state that the optimal storage area strategy is to put the most frequently selected items in the aisle nearest the p/d point and the next most frequently chosen items in the next aisle. Their research was limited in that it assumed that the aisles only allowed one-way travel and limited to transversal routing. This paper compares two volume-based safe-keeping policies to arbitrary storage in a number of operating conditions.

Routing

Routing regulations determine the course of your picker for a picking tour, specifically the series in which items are to be picked. These policies range from simple heuristics to optimal steps. Optimal routing results in less travel time, but heuristic routing advantages from its ease and familiarity to most warehouse workers. Nearly all order picking businesses visited by the writer use heuristic routing strategies. Most professionals seemed unacquainted with advanced routing heuristics and maximum routing procedures. Despite the fact that heuristics aren't as effective as optimal routing, they might be considered a major improvement over current routing. Heuristics are easy to understand and form routes that are quite consistent in dynamics. Such consistency helps to prevent a missed pick and choose, a much higher sin than having to walk a few extra steps. This good thing about these popular heuristics needs to be compared against the distance saved by following optimal routes.

The books on routing regulations includes the development of maximum routing algorithms and the comparability of routing heuristics. Ratliff and Rosenthal (1983) and Goetschalckx and Ratliff (1988a; 1988b) are suffering from maximum algorithms for routing pickers in a rectangular warehouse. In addition, de Koster and vehicle der Poort (1998) compare optimal and the S-shape heuristic in a decentralized warehouse with no predetermined p/d point. However, this newspaper targets heuristics in the more frequent manual warehouse. Hall (1993) analyzed routing heuristics in a manual warehouse. Furthermore, Hall developed distance approximations for many routing heuristics in a random storage warehouse and looked into the impact of warehouse shape. Petersen (1997) extended this by evaluating a new routing heuristic and analyzing the impact of form for a fixed-capacity warehouse. Caron et al. (1998) evaluate two simple routing heuristics in a manual single cross-aisle warehouse. This newspaper compares four routing heuristics to ideal in both random and volume-based storage space warehouses.

Objectives

This study's main objectives are to compare various routing heuristics to best routing in a volume-based and arbitrary storage space environment; compare the performance of volume-based storage area and random storage; and verify the impact of travel speed and picking rates on routing and storage space policy performance.

The reason this research is important for the reason that it offers professionals insights into how to use good thing about the savings that derive from using volume-based storage and more advanced routing heuristics or ideal routing. The majority of warehouses frequented by the author, in market sectors, such as, mail order, computers, farm equipment, and third-party warehousing used very easy routing heuristics. The order picking process is still mostly a manual proposition for the most part warehouses. Storage is generally accomplished with arbitrary storage, although most businesses did make an effort to identify some high volume level items near the pick-up/drop-off point. This is in stark comparison to the books, which touts the cost savings of optimal algorithms and the genuine use of very simple storage space and routing techniques. Tompkins et al. (1996) discuss that warehousing and distribution centers functions are historically one of the very most frequently overlooked, underfunded, and inadequately planned corporate and business functions. This newspaper seeks to help managers gain insights for improvement of warehouse and distribution center functions.

The routing and storage space plans in this analysis are likened in terms of the total time necessary to complete a given pick list. This time includes not only travel, but also the time for discovering the safe-keeping location and product, picking the right quantity from the pick and choose location, confirming the go with on the go with list and positioning the items in the picking cart or vehicle. Tompkins et al. (1996) says that travel time is often only about 50 % associated with an order picker's time.

The organization of the paper is really as follows. Another section explains the warehouse and the assumptions found in this newspaper. Next, the experimental design is presented. Last, the results are discussed and several conclusions are offered.

Warehouse assumptions

The warehouse that is evaluated in this newspaper is rectangular with ten picking aisles with leading and back gain access to aisles. This is a manual picking environment where over 1, 000 items are stored on either racks or bin shelving. Picking is strict-order/batch picking where a picker retrieves the items on the go with list and transports the items back again to the p/d point for order consolidation, packaging, and shipment. The pickers depart from the p/d point and either walk or ride order picking vehicles to all or any the locations specified on the pick out list. The structure is consistent with the warehouse structure literature (Bassan et al. , 1980; Ben-Mahmud, 1987; Sims, 1991) and with observations of several order picking operations. The distance a picker journeys to complete a picking travel contains horizontal travel along the front and returning aisles and vertical travel in the ten picking aisles. The picking aisles are vast enough to allow two-way travel, but picking can be carried out from both edges of the aisle. The horizontal distance within picking aisles is not considered. The location of the p/d point is in the middle of leading aisle (Shape 1 shows warehouse design).

The items are allocated storage locations based on their expected demand. Therefore, high level items are located closest to the p/d point and low size items are located farther from the p/d point. Typically, a comparatively few items take into account the vast majority of the sales quantity - the Pareto principle.

Pick lists are generated using random volumes to determine the items for the find list. Once something has been generated, its safe-keeping location, established from this volume storage plan in question and dependent on the ranking order volumes of items demanded (i. e. the highest volume items can be found nearer to the p/d point), is added to the pick list. This process continues until the pick list has reached the desired range of items (pick list size). The routing heuristics and the optimal algorithm form a picking course for each pick list and estimate the travel, picking and total time to complete each pick list.

Routing policies

There are three routing heuristics that are compared to best routing in this paper. These routing heuristics are generally found in many warehouses and also have been proposed in previous research.

Transversal strategy

One of the easiest approaches for routing pickers is the transversal strategy in which a picker gets into only those aisles made up of picks from one end of the aisle and exits through the other end of the aisle.

Largest distance strategy

For the major gap heuristic, a picker gets into an aisle only so far as the beginning of the largest space in a aisle. The greatest gap signifies the parting between any two adjacent picks, or between your first pick and the front aisle, or between your last go with and the trunk aisle. The largest gap within an aisle is which means part of the aisle that the picker does not traverse.

Composite strategy

The amalgamated routing heuristic combines the best features of the go back and transversal strategies and seeks to reduce the travel distance between your farthest picks in two adjacent aisles (Petersen, 1997). You won't traverse every aisle if, in fact, a go back strategy is recommended for that aisle's picks.

Optimal routing

Ratliff and Rosenthal (1983) developed an best process of routing employees in a rectangular warehouse. This process is fast and can be run on an individual computer. One may ask why anyone would use a heuristic when a practical best algorithm is offered. However, as Hall (1993) observed, an optimal route is usually a hybrid of transversal and greatest gap strategies. Hall also known that heuristic strategies might provide near-optimal routes and prevent the confusion inherent in optimal alternatives.

Storage policies

The two variants of volume-based storage area found in this review are diagonal and within-aisle safe-keeping. Physique 2 shows these two volume-based storage insurance policies with a middle p/d point. The dark gray area signifies high level items, the medium grey represents moderate level items, and the light grey represents low volume items.

Diagonal

Diagonal storage involves getting the items stored in the warehouse in a diagonal structure with the highest size item in the location closest to the p/d point and the lowest quantity item in the farthest location from the p/d point. Tompkins et al. (1996) areas that this type of safe-keeping strategy is the "ideal".

Within-aisle

Jarvis and McDowell (1991) shown within-aisle storage for a warehouse with one-way aisle travel and using transversal routing. The best size items are stored in the aisle closest to the p/d and the lowest volume level items are stored in the aisles farthest from the p/d.

Experimental design

The experimental design consists of three factors: routing plans, storage plans, and opt for list size. The routing coverage factor includes amalgamated (C), largest difference (LG), transversal (T), and ideal (O). The storage area policy factor involves diagonal (D), within-aisle (W), and random (R). The pick and choose list size factor includes get list sizes from 2 through 50 items. Hall (1993) and Petersen (1997) exhibited that the amount of picks impacts the performance of routing strategies. This experiment is a mixed-model with the routing and safe-keeping guidelines as within-subject factors and opt for list size as the between-subject factor.

Each routing and safe-keeping factor level mixture for confirmed go with list size is examined on a single 500 randomly produced pick lists. You will discover 588 skin cells (4 - 3 - 49) and a total of 294, 000 observations making statistical significance easy to show. The random volumes used to create the get lists were generated using a leading modulus multiplicative linear congruential generator (Regulation and Kelton, 1991). The performance solution is the full total route time for the picker to pick all items on the pick out list. This time around includes the travel time, time for figuring out the storage area location and product, picking the right variety from the pick location, confirming the pick on the pick and choose list and putting the items in the picking cart or vehicle. For this paper all the activities listed previously, except travel, are mixed into a picking time estimate which includes all non travel related activities. The travel rate is 150 toes each and every minute and the picking time is 0. 25 minutes per item. The travel rate and picking time are based on information from order picking businesses.

Results

The results of the experiment are split into three sections. The first section examines the performance of the routing policies. Another section examines the volume-based and arbitrary storage policies. The very last section investigates the effect of travel acceleration and picking rate on routing and storage policies.

Routing policies

Figure 3 shows the percentage over maximum for the routing heuristics using within-aisle storage space. There are many observations to note from Amount 3. It really is clear that composite is the better heuristic with the average percentage solution difference of 2. 6 %. The largest gap performance is almost indistinguishable to the amalgamated until the pick list size is nine items and its solution gap keeps at about 4-5 per cent. The transversal does not perform well with small get list sizes, but its solution space decreases and it is even significantly less than the largest space after 28 items. As the get list increases, the ratio solution gap between the routing heuristics and the optimal decreases to 1 1. 5 % for amalgamated and 3-4 per cent for largest difference and transversal. When the number of items to pick per aisle is large (4 to 5), the routing heuristics and maximum algorithm form routes that are nearly identical.

Diagonal storage can be used in Figure 4. The amalgamated and largest distance perform very well with a average solution distance of only 1 1. 5-2 per cent and nearly no difference between them. Again the traversal will not succeed with small pick list sizes, but at 50 items its solution space is down to 6. 5 %.

Figure 5 shows the ratio solution space for the routing heuristics in a arbitrary storage space environment. The major gap is evidently the best overall routing heuristic with a solution space generally between 2. 5-3. 5 per cent. The composite generally runs between 1-5 per cent over optimal. In fact for pick out lists larger than 35 items, the composite is preferable to the largest space. The transversal performance is very eye-catching. After the pick and choose list is above 17 items, the transversal is only 10 % over ideal. This gap progressively shrinks to around 1 per cent at 50 items. In fact, the transversal and composite offer almost similar performance between 40 and 50 items.

Storage policies

Figure 6 compares the ratio cost savings of within-aisle and diagonal storage space over random storage space for best routing. Within-aisle storage is between 30 % and 9 % better than random storage with an overall saving of 15. 9 per cent. Diagonal storage amounts from 25 per cent to 6 per cent better than arbitrary storage with an overall cutting down of 11. 8 %. The difference between within-aisle and diagonal safe-keeping mixed between 3 per cent to 6 %. Figure 6 evidently shows the top personal savings that are possible from volume-based safe-keeping. The savings of volume-based safe-keeping found in conjunction was between 12 and 14 per cent for within-aisle storage space and around 11 % for diagonal storage space with amalgamated and largest difference but only 4 % for diagonal with transversal.

Travel speed and picking rate effects

To examine the result of travel velocity and picking rate on routing and safe-keeping policy performance, a number of different travel rates of speed and picking rates are analyzed. These picking conditions include a travel acceleration of 50 foot each and every minute with a picking rate of just one 1. 0 minute per item and a travel swiftness of 100 feet each and every minute with a picking rate of 12. 0 minute per item. They are in addition to the previously used travel velocity of 150 ft per minute and picking rate of 1 1. 0 minute per item. Number 7 shows the effect of picking time on total route time using ideal routing and arbitrary storage. It will not be unusual that a picking environment with a larger picking time would have a more substantial total route time. Also as the find list size raises, the percentage of travel time reduces as the worker spends more time picking.

Table I shows the mean total course time in minutes for the three picking surroundings for the routing and safe-keeping policies. The common total road time rises from around nine minutes to around 34 minutes to around 56 minutes depending on travel quickness and especially the picking rate. Stand II exhibits the mean percentage solution gap between the routing heuristics and maximum routing for the three picking environments. In addition, Desk II also contains the mean ratio solution space for the heuristics when just taking into consideration the total road distance (i. e. where the picking time is not considered). As the picking time boosts, the solution spaces between your heuristics and optimum decreases. Therefore that for picking conditions where in fact the picking time is considerable that heuristic routing gives results within the few percent of maximum. However, when just considering travel distance (or just travel time without picking time considered) the solution spaces between heuristic and best can be significant.

Table III shows the ratio savings of within-aisle and diagonal storage area over random storage space. Remember that when the picking time is substantial the savings between volume-based safe-keeping and random safe-keeping shrink because the travel component of the total route time is a lot smaller.

Conclusions and managerial implications

No prior research has evaluated various routing heuristics and an optimum workout in a volume-based and arbitrary storage environment; likened the performance of volume-based storage area to random storage; and analyzed the impact of travel rate and picking rates on routing and storage area policy performance.

Heuristics are commonly found in practice because they are easy for warehouse workers to understand, they form constant routes that reduce the risk of missed picks, they feature good solutions, and they have an easy solution time. The biggest drawback to heuristic routing solutions would be that the space between these alternatives and the perfect can be significant. This newspaper has shown that the distance between routing heuristics and maximum routing is highly reliant on the travel quickness and picking time. For the three picking environments considered the composite was the best routing heuristic with the average percentage solution space of just one 1. 7 per cent. The largest distance had an overall solution gap of 2. 1 per cent and the transversal distance was 6. 8 %.

The performance of the routing procedures, heuristics and best, was also reliant on the storage insurance plan in use. In addition, the advanced heuristics' alternatives are sometimes as complicated as optimal alternatives. Using an optimal regime such as Ratliff and Rosenthal (1983) offers a manager an easy solution time and the shortest distance way. However, best routes are often confusing in dynamics and might not exactly work within the confines of an order picking operation. Managers must assess the tradeoff between the efficiency of ideal alternatives and the simple execution and use of heuristic techniques.

This research confirms and extends the results of Jarvis and McDowell (1991) that within-aisle storage space is the greatest overall volume-based safe-keeping policy regardless of aisle travel constraints. Furthermore, within-aisle storage area also works well for all get list sizes. The performance of diagonal storage was also impressive in comparison to random storage space. The managerial implications of these results are that significant cost benefits (3-30 %) can derive from volume-based safe-keeping, but these personal savings are highly dependent on the travel rate, the picking rate, and the amount of SKUs on the get list.

ImageMean total way time in minutes

Table I. Mean total path amount of time in minutes

ImageMean percentage solution gap

Table II. Mean percentage solution gap

ImageMean percentage personal savings of volume-based storage area over random storage

Table III. Mean percentage personal savings of volume-based safe-keeping over random storage

ImageWarehouse layout

Figure 1. Warehouse layout

ImageVolume-based storage area policies

Figure 2. Volume-based storage policies

ImagePercent over optimal of the routing heuristics using within-aisle storage

Figure 3. Percent over optimal of the routing heuristics using within-aisle storage

ImagePercent over optimal of the routing heuristics using diagonal storage

Figure 4. Percent over optimal of the routing heuristics using diagonal storage

ImagePercent over optimal of the routing heuristics using random storage

Figure 5. Percent over optimal of the routing heuristics using arbitrary storage

ImagePercent savings of within-aisle and diagonal storage area over arbitrary storage

Figure 6. Percent cost savings of within-aisle and diagonal safe-keeping over arbitrary storage

ImageThe effect of pick (managing) time on total route time

Figure 7. The end result of find (controlling) time on total course time

Warehouse Functions: webpage 510-513, Syndication: Planning and Control

Order Picking:

Unit fill- In this technique, nature of the merchandise enables the picker to fill the customers need by pulling a complete pallet insert from stock. An example would be refrigerator distributor who stocks and shares each product one-per-pallet. This method of picking lends itself better to automated kinds of picking.

Case great deal- often products are pulled to fill requests in full circumstances only. Case-lot quantities can be stored on a shelf or on the pallet, with regards to the order point and replenishment quantities. Although this method can be computerized, generally it requires manual picking.

Broken circumstance- this method is employed by distributors that offer their customers volumes in less than full case lot quantities. Again, this technique of picking can be done from a shelf, pallet, or other form of storage unit. This method is very hard to automate and is almost exclusively a manual operation.

Receiving and Shipping:

Receiving has been defined as that activity worried about the orderly receipt of most materials coming into the warehouse, the required activities to ensure that the quantity and quality of such materials are as purchased, and the disbursement of the materials to the organizational functions needing them.

In compare to receiving, transport can be explained as those activities performed to guarantee the accurate and harm free presentation, marking, weighing and loading of completed goods, raw materials and components inn response to customer order requirements in as cost effective as expeditious a manner as it can be.

Further elaboration on webpage537, Distribution: Planning and Control

Warehouse Automation

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