A hierarchical procedure for storage allocation and assignment within an order-picking system. A case study

Abstract

Advanced approaches to improve order-picking efficiency can significantly reduce customer response time in a supply chain system, decrease the overall logistic costs, and improve the customer service level. This paper focuses on storage allocation to properly define the right inventory level for each stock-keeping unit (SKU) and on the storage assignment problem to properly locate the SKU to the most convenient positions. The aim of this paper is to present a systematic hierarchical top-down procedure that allows the combining of sequential decision steps concerned with allocation and assignment issues. The proposed procedure is applied to a case study, and the results obtained from a what-if analysis are presented.

Assignment of Stock Keeping Units to Parallel Unidirectional Picking

“…Although Accorsi et al [1] suggest considering both SKU allocation and SKU assignment simultaneously, SKU allocation falls outside the scope of the problem considered in this paper. The volume of stock for a SKU for a wave of picking is predetermined by the planning department.…”

“…Accorsi et al [1] simultaneously considered both the storage allocation (inventory levels for each SKU) and the storage assignment (location of the SKU in the DC) problems. Using a case study with forward and reserve areas, they extensively compared combinations of different forward storage allocation strategies, storage assignment rules, SKU clustering algorithms, percentile threshold cut-offs for SKU similarity, and picker routing policies.…”

Sustainable food supply chain management

“…Recent contributions are presented by Accorsi et al (2014a) and Accorsi et al (2012). In particular, Accorsi et al (2014a) present a supporting decision tool for the design and optimisation of a warehousing system with a special focus on storage allocation and storage assignment problems, which are two of the most critical issues.…”

Design of Order-Picking System and Selecting Picking Strategies in a 3PL Firm for Serving Fashion Retailing Companies

“…The literature traditionally deals with the storage allocation problem and the storage assignment problem separately (Accorsi et al 2012). Storage allocation determines the right inventory level per each SKU, and storage assignment addresses the assignment of SKU to the most convenient locations.…”