Improving order picking efficiency by analyzing combinations of storage, batching, zoning, and routing policies

Abstract

In order to differentiate from competitors in terms of customer service, warehouses accept late orders while providing delivery in a quick and timely way. This trend leads to a reduced time to pick an order. The objective of this research is to simulate and evaluate the interaction between several storage, batching, zone picking and routing policies in order to reduce the order picker travel distance. The value of integrating these four operation policy decisions is proven by a real-life case study. A full factorial ANOVA provides insight into the interactions between storage, batching, zoning, and routing policies. The results of the study clearly indicate that warehouses can achieve significant benefits by considering storage, batching, zone picking, and routing policies simultaneously. Awareness of the influence of an individual policy decision on the overall warehouse performance is required to manage warehouse operations, resulting in enhanced customer service.