Integrated zone picking and vehicle routing operations with restricted intermediate storage

Abstract The competitiveness of a retailer is highly dependent on an efficient distribution system. This especially true for the supply stores from centers. Stores ask high flexibility when it comes to their supply. means that fast order processing essential. Order affects different subsystems at center: orders are picked in multiple picking zones, transferred intermediate storage, and delivered via dedicated tours. These steps interdependent. schedule needs be synchronized with routing decisions ensure availability DC’s loading docks associated tours scheduled. Concurrently, storage represents bottleneck as capacity limited. simultaneous planning operations restricted therefore relevant retail practice but has not so far been considered within integrated approach. Our work addresses this task discusses zone vehicle problem storage. We present comprehensive model formulation introduce general variable neighborhood search consideration given stages. also two alternative sequential approaches motivated by prevailing situation industry. Numerical experiments case study show need approach obtain practicable results. Further, we identify impact main characteristics overall provide valuable insights application these findings