A simulation-optimization heuristic for configuring a selective pallet rack system

Abstract

A discrete event simulation-optimization heuristic is presented for configuring a selective pallet rack system. To the rack system under study pallets arrive dynamically over time to be stored for a given period of time. The storage duration, arrival time and pallet height are assumed to be continuous random variables with known density functions. In such a system, if there is no available slot in the rack to store an arriving pallet, it is placed on the floor. The proposed heuristic aims at minimizing the number of racking banks needed so that the long term proportion of pallets that are placed in a rack slot reaches a minimum pre-specified value. The computational experiments conducted suggest that the proposed heuristic effectively solves the problem under study.