Storage location assignment and order picking optimization in the automotive industry

Abstract

The objective of this study is to design storage assignment and order picking system using a developed mathematical model and stochastic evolutionary optimization approach in the automotive industry. It is performed in two stages. At the first stage, storage location assignment problem is solved with a class-based storage policy with the aim of minimizing warehouse transmissions by using integer programming. At the second stage, batching and routing problems are considered together to minimize travel cost in warehouse operations. A warehouse in the automotive industry is analyzed, and an optimum solution is obtained from an integer programming model. Due to the computational time required for solving the integer programming problem, a faster genetic algorithm is also developed to form optimal batches and optimal routes for the order picker. The main advantage of the algorithm is the quick response to production orders in real-time applications. The solutions showed that the proposed approach based on genetic algorithms can be applied and integrated to any kind of warehouse layout in automotive industry.