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Abstract-In wave-picking and entire-replenishment zonebased warehouse, the slotting and cartonization problems occur with equal frequency and can be the optimization conditions for each other. A dynamic location assignment model is proposed to minimize the wave-picking time among all of zones, and a particle swarm optimization (PSO) for slotting is designed according to SKUs correlation and simulate cartonization optimization (SCO) based on SKUs' location. Therefore, the new PSO-SCO heuristic algorithm is given to solve the slotting and cartonization problem simultaneously. With the improvement of picking time is from 2.6% to 8.8%, results show that the solution of PSO-SCO algorithm is better than COI and PSO-SCO algorithm. It has significant impact on improving the picking efficiency.