Implementation of Linear Programming and Decision-Making Model for the Improvement of Warehouse Utilization

Abstract

Warehouses are used to store raw materials, finished goods, defective products, tools, machinery, and other company assets until needed. In addition, the warehouse is a staging area for the storage and packaging of products delivered to the customer for consumer industries. Ideally, storage time, storage space, and delivery lead times are minimized by improving warehouse management. This study implements an integration of linear programming (LP) and decision-making models. The LP model provides decision-makers with the optimum quantity of products that can be stored in the warehouse based on different case scenarios considered in this study. Furthermore, the criteria affecting the space utilization of warehouses at total capacity are identified. An integrated approach of rough analytical hierarchical process (AHP) and rough technique for order preference by similarity to ideal solution (TOPSIS) is utilized to determine the best pallet placement on the respective rack. Additionally, this technique identifies the storage racks that require improvements in warehouse space utilization for the products. This methodological approach will help many industries and logistics teams make optimal decisions and improve productivity.