Optimal Picking Policies in E-Commerce Warehouses

In e-commerce warehouses, online retailers increase their efficiency by using a mixed-shelves (or scattered storage) concept, where unit loads are purposefully broken down into single items, which individually stored in multiple locations. Irrespective of the stock keeping units customer jointly orders, this storage strategy increases likelihood that somewhere warehouse items requested will be close vicinity, may significantly reduce an order picker’s unproductive walking time. This paper optimizes picker routing through such warehouses. Specifically, we introduce generic exact algorithmic framework covers multitude picking policies, independently underlying zone layout, and is suitable for real-time applications. embeds bidirectional layered graph algorithm provides best known performance simple problem with depot no further attributes. We compare three different real-world settings differ slightly application policies. Based on these, derive additional layouts yield managerial insights. Our results reveal right combination drop-off points, dynamic batching, utilization carts, layout can greatly improve performance. particular, some combinations policies more than 30% compared standard currently used practice. was accepted Chung Piaw Teo, optimization.