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This work presents the effect, in terms of travel distance and material handling time reductions, of an optimal rather than a uniform item allocation in one-block picking warehouses, both with and without the use of a simple picking heuristic. Since developing efficient product-location strategies represents a critical issue in Operations Managemen...
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Citations
... The aim of warehouse operations is to meet customer needs and requirements while efficiently utilising available space, resources, and labour. The products need to be safe and safeguarded (Fumi et al, 2013). This is done by integrating value-added services into the warehouses rather than concentrating solely on storage. ...
As one of the key steps in the manufacturing supply chain, warehousing is in the position of controlling inventories. The success of realised goods movements can often be measured by how well warehouse activities are carried out. The goal of this study is to identify the problems with inventory management in warehouses and to install WMS to enhance inventory control in a warehouse setting. In industries such as manufacturing and other forms of production, efficient warehousing and management of inventory is essential. A systematic evaluation is used throughout the literature to investigate warehouse operational challenges and how they impact performance measures. As clients develop increasingly sophisticated and require precise, safe, and rapid information communication, this study develops and comprehends the usage of technological advances to support the business and incorporate trustworthiness, control, and flexibility into the daily operations of warehouses. The main goal of this study was to enhance the work management system of the organisation. The outcomes from this study offer a few helpful suggestions on applying WMS practises within the organisation.
... Order picking is a fundamental process within the warehouse, and it accounts for approximately 55% of its total operating costs (Fumi et al., 2013;Andjelkovic & Radosavljevic, 2017). Under this assumption, optimizing the routing policy of pickers is a crucial aspect of the picking process in manual warehouses. ...
In department stores, heavier products, such as water, are assigned to specific areas, placing them first in pallets to avoid the damage of lighter products that complete the picking order and are put over these heavier products. This study analyses the impact of the allocation of heavy products and of the size of relating areas on picker routing policies, and compare this scenario with a situation in which an area dedicated to heavy product does not exist in the warehouse. S-Shaped and S-Shaped Advanced policies are implemented to respond to picking orders for different products to be allocated in pallets following rules dictated according to their weight. Through a simulative approach, conducted with MS ExcelTM software, their joint implementation was simulated by distinguishing various allocation areas within the warehouse to simulate the different types of products to be picked; the objectives functions cover the minimization of routes to fulfil orders, and the minimization of the total travelled distance. Warehouse storage capacity, picking list size, and the size of the specific allocations were the variables considered. The results of the two scenarios are presented separately and in aggregate form to appraise: (i) the impact of heavy product-specific allocation, (ii) the efficiency of the proposed solutions in terms of the total distance travelled by the pickers, and (iii) the achievable optimization margins. Finally, a possible future research proposal is presented.
... In the latter research, the storage assignment is further improved by discovering association rules through the analysis of the same real-world data using various techniques like Apriori, FP-Growth and ECLAT algorithms. Further research from Kofler et al. [13] and Fumi et al. [14] introduces different takes on this storage assignment problem. After the items are successfully stored, the order planning process, which covers the input of the wares in the warehouse, is finally completed. ...
... 14. Additional quality indicators of the generated routes. ...
... One aspect that has, for long, been critical is warehousing [31,37]. Data reveal that 39% of the logistics costs in Europe are due to activities regarding the warehouse [31]. ...
... One aspect that has, for long, been critical is warehousing [31,37]. Data reveal that 39% of the logistics costs in Europe are due to activities regarding the warehouse [31]. In fact, all over the world warehouse activities represent around €300 billion every year, with more than 85% involving operating costs -such as space, picking, storage, sorting, labour, equipment, packaging and dispatching [38]. ...
Customers are becoming increasingly demanding and logistics is gaining more importance in order to assure customer satisfaction in terms of money, quality and time. The goal of this paper is to show that warehouses can be a source of competitive advantage and that a critical approach towards the existing available space may lead to increases in capacity with low investment. To accomplish this, a company is used as a model and suggestions for improvements are carried out. Regarding the capacity, a volume approach is taken into consideration, both in terms of the products and regarding the bins. Moreover, opportunities to achieve better space usage are presented by suggesting additional or different bins. Therefore, it is possible to reduce costs, to increase safety, to increase capacity up to 9,77%, and to help minimizing traveling distances and damages caused to the items.
... El impacto que tiene el almacenamiento para el costo y la eficiencia de las empresas es un elemento crítico para la cadena de suministro. Diferentes estudios realizados alrededor de la administración de inventarios muestran que las operaciones de almacenamiento en una empresa representan aproximadamente un 23% de los costos logísticos en el caso de países como Estados Unidos y hasta un 39% para el caso de Europa (Fumi et al., 2013). ...
La cadena de suministro es la red donde se integran todas las actividades de adquisición, transformación y entrega de bienes y servicios. En la cadena de suministro, el inventario tiene la función de satisfacer la demanda del cliente, dando soporte al abasteciendo en la producción, y que al mismo tiempo, ofrecer protección a los insumos que se emplean en la fabricación del producto. En este trabajo se analiza la administración de los inventarios a través de un caso de estudio en una empresa del sector alimentario. Considerando que es esencial el aprovechamiento del espacio donde se almacena la materia prima, la reducción de los tiempos de operación y minimizando las pérdidas de los productos perecederos, en este artículo se plantea el uso de técnicas basadas en un análisis ABC y la aplicación de un algoritmo genético. Se propone una configuración de la distribución del almacén considerando variables como el volumen y la frecuencia de entrada de los productos a la empresa. Los resultados de este estudio muestran la ruta óptima para la recolección y el manejo de inventario dentro del almacén, minimizando las distancias de traslado, contribuyendo a la mejora en el nivel de servicio en las operaciones de la empresa
... M-SLAP) and to test and compare how various allocation rules and in particular an affinity based policy, perform in such dynamic scenarios. In [7], estimation of material handling time reduction for picking operations using optimal item allocation rather than a uniform distribution of picking and storage locations was analyzed. Results were calculated through simulations, based on a variable picking list size, with the aim of underlining the effect of different slot-code optimization levels on the reduction of average distances traveled. ...
Building a successful warehouse management system encompasses solving many problems of different nature to reshape the general workflow and ensure improvements in terms of resource management. In order for such a system to be accepted and used by a logistics company, those solutions need to be presented through a simple, adaptable and most importantly, a feasible software solution. One of the aspects that needs to be covered while building a warehouse management system is the optimal product placement in the warehouse. If the products are strategically placed, all the other improvement strategies like stock to picking zone item transfer and item picking order become more efficient and easier to implement. In this paper, tactics and issues regarding the optimal product placement in a warehouse are analyzed in detail through a real-world case study. Solutions of this problem largely differ for new, empty warehouses and for already operative warehouses not able to carry out a stocktaking process. Approaches for both possible situations are proposed and tested out on two different warehouses in a medium-to-large logistics company.
... Costs of order-picking are result of the following activities: travelling (55%), searching (15%), extracting (10%) and paperwork (20%) (Karasek, 2013, p. 115), and the share of order-picking cost in total warehouse cost is about 55% (Fumi, Scarabotti, & Schiraldi, 2013;Tompkins, White, Bozer, & Tanchoco, 2003). The high share of or-der-picking costs within the structure of warehouse costs indicates that this segment of warehousing process could be used for increasing efficiency and improving warehousing process. ...
... High warehouse costs in total logistics costs indicate importance of managing and optimizing of the warehousing process. According to different studies, warehousing costs (operating and capital) amount to about 23% of total logistics costs in the United States (Baker & Canessa, 2009, p. 426), while in Europe these costs account for 39% of total logistics costs (Fumi, Scarabotti, & Schiraldi, 2013). ...
For the purpose of timely response to requests of any participant in the supply chain, warehouse, as an integral part of every logistics system, can be found at any place in the supply chain, between suppliers and customers. In that sense, warehouse management involves the control and optimization of the complex warehouse and distribution system. It might be said that warehousing and inventory management represent support to the production process and strive to complete coordination in relations with all functions, such as marketing, finance, human resources etc. Therefore, any disruption in coordination can cause serious problems throughout the whole business process. When there is a need for achieving operational efficiency and cost savings, warehouse management and warehouse operations are appropriate areas, in terms of achieving savings which will not jeopardize the quality of products and services. Especially, order-picking, as part of the warehousing process, is one of the most important activities when it is about providing savings. Order-picking process involves taking raw materials/products from a specific location in the warehouse, for responding to requirements of production and/or customers. It is estimated that the costs of orderpicking participate with 55% in total cost of warehousing. However, elimination of this activity can increase the level of dissatisfaction of partners in the supply chain, and, in that way, increase the cost of lost sales. In this regard, one should not consider elimination of order-picking from the warehousing process as an option, but rather find a way to increase its efficiency. Due to their flexibility in the order-picking process, people cannot be fully replaced by machines and technologies. However, equipment of orders-picking process by the adequate technology could increase efficiency of process and productivity of employees in the warehouse. In that sense, warehouse management system (WMS) is an information technology whose implementation has a aim to increase efficiency of processes performed in warehouse. Therefore, the aim of the paper is to emphasize the importance of implementing a warehouse management system for improving the order-picking process, as warehouse activity. In order to accomplish this aim, empirical research has been conducted. A random sample of companies specialized for performing distribution activities has been chosen. Authors of the paper have analysed which segment of order-picking process can achieve maximum benefits from implementation of this technology, but also are there any limitations in terms of implementation of WMS. Based on the statistical methods (descriptive statistics and cluster analyses), through the SPSS software package, the results presented in the paper indicate the segments of order-picking process which are mostly improved by implementing the WMS, as information technology.
... This operation could be very capital-intensive in situation when warehouse is automated (De Koster, et al., 2007). Costs of order-picking are result of the following activities: traveling (55%), searching (15%), extracting (10%) and paperwork (20%) (Karasek, 2013, 115), and share of order-picking cost in total warehouse cost is about 55% (Fumi, Scarabotti, Schiraldi, 2013;Tompkins et al., 2003). The high share of order-picking cost within the structure of warehouse cost indicates that this segment of warehousing process could be used for increasing efficiency and improving warehousing process. ...
... High warehouse cost in total logistics cost indicates importance of managing and optimizing of warehousing process. According to different researches, warehousing costs (operating and capital) amount about 23% of total logistics costs in the United States (Baker, Canessa, 2009, 426), while in Europe these costs are 39% of total logistics costs (Fumi, Scarabotti, Schiraldi, 2013). Warehousing process includes receiving, putting away, storage, order-picking and despatching of raw materials/products (Berg, Zijm, 1999;Kim et al., 2013). ...
For the purpose of timely response to requests of any participant in the supply chain, warehouse, as an
integral part of every logistics system, can be found at any place in the supply chain, between suppliers and customers. In that sense, warehouse management involves the control and optimization of the complex warehouse and distribution system. It might be said that warehousing and inventory management represent support to the production process and strive to complete coordination in relations with all functions, such as marketing, finance, human resources etc. Therefore, any disruption in coordination can cause serious problems throughout the whole business process.
When there is a need for achieving operational efficiency and cost savings, warehouse management and warehouse operations are appropriate areas, in terms of achieving savings which will not jeopardize the quality of products and services. Especially, order-picking, as part of the warehousing process, is one of the most important activities when it is about providing savings. Order-picking process involves taking raw materials/products from a specific location in the warehouse, for responding to requirements of production and/or customers. It is estimated that the costs of order-picking participate with 55% in total cost of warehousing. However, elimination of this activity can increase the level of dissatisfaction of partners in the supply chain, and, in that way, increase the cost of lost sales. In this regard, one should not consider elimination of order-picking from the warehousing process as an option, but rather find a way to increase its efficiency.
Due to their flexibility in the order-picking process, people cannot be fully replaced by machines and technologies. However, equipment of orders-picking process by the adequate technology could increase efficiency of process and productivity of employees in the warehouse. In that sense, warehouse management system (WMS) is an information technology whose implementation has a aim to increase efficiency of processes performed in warehouse. Therefore, the aim of the paper is to emphasize the importance of implementing a warehouse management system for improving the order-picking process, as warehouse activity. In order to accomplish this aim, empirical research has been conducted. A random sample of companies specialized for performing distribution activities has been chosen. Authors of the paper have analysed which segment of order-picking process can achieve maximum benefits from implementation of this technology, but also are there any limitations in terms of implementation of WMS. Based on the statistical methods (descriptive statistics and cluster analyses), through the SPSS software package, the results
presented in the paper indicate the segments of order-picking process which are mostly improved by implementing the WMS, as information technology.
... In the same time the share of the warehouse costs in the total logistics cost is not negligible. According to certain findings, in the United States warehouse costs (operating and capital) are participating with 23 percent in the total logistics costs (Baker & Canessa, 2009, p. 426), while in Europe these costs have reached 39 percent of the total logistics costs (Fumi et al., 2013). Also, costs of warehousing participate in the total costs of a company from 2 to 5percent (Camacho, 2011), and these costs consists of labour costs (60 percent), space (25 percent) and equipment (15 percent) (Argusi, 2016;Emmett, 2005, p. 175). ...
The acceptance of lean philosophy in the company means not only respecting the lean principles in the manufacturing but in all the processes that are performed inside the company. All processes in the company that are a potential places for making losses and waste and thus require the application of lean principles. Among others, warehouse and warehouse operations, as a centre of costs and waste, must be supported through the implementation of lean philosophy in the company by respecting lean principles. The implementation of lean principles in the warehouse is a certain step of improvement warehouse process and performance, but also of the whole company. In that sense, the paper presents the analysis of the warehousing process and its performances before and after implementation of the lean tools in a selected Serbian company as a practical example. In addition, research shows which parts of warehousing need to be improved, in analysed company, as well as correlation between the individual parts of warehousing, according to employees' opinion from next sectors: purchasing, production and logistics.
... The adopted assignment strategy highly affects the AS/RS handling performances. The standard literature focuses on the average travel distance and time to S/R products from the warehouse (Chiang et al., 2011;Ming-Huang Chiang et al., 2014;Chuang et al., 2012;Fumi et al., 2013;Kasemset and Rinkham, 2011;Kofler et al., 2011;Bortolini et al., 2015). From such a perspective, AS/RSs differ from traditional forklifts. ...
Effectiveness in warehouse design and operations is crucial for the industrial companies to be competitive in the market arena by reducing the response time and inbound costs, increasing their global service level. Storage assignment deals with the definition of effective strategies to organise items into industrial warehouses to achieve high performances. This paper enhances the conventional approaches on storage assignment proposing a time and energy bi-objective model for single-deep rack automatic warehouses served by aisle captive automated storage/retrieval systems (AS/RSs). The model is based on the joint minimisation of the travel time and the energy required by the cranes to S/R the unit-loads. The analytic models to compute the expected single-command cycle time and energy are integrated into a bi-objective model, optimising the load assignment. An application, taken from the beverage industry, is, finally, discussed. The different perspectives of adopting time and energy to drive the load assignment are stressed proposing a practical trade-off rule. Results highlight the possibility to balance the time cycle and the energy intensity. Within the case application, an energy saving of 12.66% respect to the time model occurs with a time efficiency decrease of about 2.52%.
