E-commerce companies often use manual order-picking systems in their warehouses since these systems can provide the required flexibility and scalability. Manual systems have been widely studied, but the operating policies may require significant changes for e-commerce settings. First, to maintain consumers' loyalty, it is important to maintain delivery reliability even on the busiest days. When the number of order pickers in an area increases, however, more delays due to interactions may occur. For example, travel speed may need to be lowered when order pickers pass each other in narrow aisles. Second, many products sold through e-commerce are returned by consumers. Before these returned products can be sold again, they must be reintegrated in the stock. This paper presents hybrid genetic algorithms to determine routes for simultaneous pickup of products in response to consumers' orders and delivery of returned products to storage locations. Furthermore, interactions between the order pickers are considered in the routing decisions. The developed algorithms use specific warehouse problem characteristics. We identify the mix of pickups and deliveries to realise the highest savings in practice. It is shown that order-picker interactions can be a significant cause for delay and should be accounted for in the routing.

Internet sale supply chains often need to fulfil quickly small orders for many customers. The resulting high demand and planning uncertainties pose new challenges for e-commerce warehouse operations. Here, we develop a decision support tool to assist managers in selecting appropriate risk policies and making staff planning decisions in uncertain conditions. Multistage stochastic modelling has been used to analyse risk optimisation approaches and expected value-based optimisation. Exhaustive numerical and practical validations have been performed to test the tool's applicability. We demonstrate, using a Dutch e-commerce warehouse, that the multi-period conditional value at risk appears to be most applicable.

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In picker-to-parts warehouses, order picking is a cost-and labor-intensive operation that must be designed efficiently. It comprises the construction of order batches and the associated order picker routes, and the assignment and sequencing of those batches to multiple order pickers. The ever-increasing competitiveness among e-commerce companies has made the joint optimization of this order picking process inevitable. Inspired by the large number of product returns and the many but small-sized customer orders, we address a new integrated order picking process problem. We integrate the restocking of returned products into regular order picking routes and we allow for the decomposition of customer orders so that multiple batches may contain products from the same customer order. We thereby generalize the existing models on order picking processing. We provide Mixed Integer Programming (MIP) formulations and a tailored adaptive large neighborhood search heuristic that, amongst others, exploits these MIPs. We propose a new set of practically-sized benchmark instances, consisting of up to 5547 to be picked products and 2491 to be restocked products. On those large-scale instances, we show that integrating the restocking of returned products into regular order picker routes results in cost-savings of 10 to 15%. Allowing for the decomposition of the customer orders' products results in cost savings of up to 44% compared to not allowing this. Finally, we show that on average cost-savings of 17.4% can be obtained by using our ALNS instead of heuristics typically used in practice.