Optimal Order Batching in Warehouse Management: A Data-Driven Robust Approach

Optimizing warehouse processes has direct impact on supply chain responsiveness, timely order fulfillment, and customer satisfaction. In this work, we focus on the picking process in warehouse management and study it from a data perspective. Using historical data from an industrial partner, we introduce, model, and study the robust order batching problem (ROBP) that groups orders into batches to minimize total order processing time accounting for uncertainty caused by system congestion and human behavior. We provide a generalizable, data-driven approach that overcomes warehouse-specific assumptions characterizing most of the work in the literature. We analyze historical data to understand the processes in the warehouse, to predict processing times, and to improve order processing. We introduce the ROBP and develop an efficient learning-based branch-and-price algorithm based on simultaneous column and row generation, embedded with alternative prediction models such as linear regression and random forest that predict processing time of a batch. We conduct extensive computational experiments to test the performance of the proposed approach and to derive managerial insights based on real data. The data-driven prescriptive analytics tool we propose achieves savings of seven to eight minutes per order, which translates into a 14.8% increase in daily picking operations capacity of the warehouse.

Improving Retail Warehouse Activity by Using Product Delivery Data

This paper presents a research study which is dedicated to the improvement in retail warehouse activity. This study aims to improve activity by identifying an efficient order picking strategy. (1) Background: The literature review shows the application of order picking strategies, but research related to their selection lacks an integrated approach. (2) Methods: The authors use the discrete event simulation method for the analysis of order picking strategies. The application of the discrete event simulation method enables various scenario tests in retail warehouses, allowing one to benchmark order picking strategies. By using the simulation model, experiments were designed to evaluate order picking strategies that are dependent on the delivery of the product distance variable. This research uses analysis of cost components and helps to identify the best possible order picking strategy to improve the overall warehouse performance. The authors benchmarked order picking strategies and presented constraints following product delivery data concerning their applications. (3) Results: The results presented show that the application of the order sorting strategy delivers 46.6% and the order batching strategy 6.7% lower costs compared to the single picking strategy. The results of the order batching strategy could be improved by 8.34% when the product clustering action is used. (4) Conclusions: The authors provide a theoretical framework which follows the application of order picking strategies using the product delivery data approach, which is the main scientific novelty of this paper. Recommendations are provided regarding the application of the proposed framework for the future improvement in retail warehouse activity.

Solving the order batching and sequencing problem with multiple pickers: A grouped genetic algorithm

This paper introduces a grouped genetic algorithm (GGA) to solve the order batching and sequencing problem with multiple pickers (OBSPMP) with the objective of minimizing total completion time. To the best of our knowledge, for the first time, an OBSPMP is solved by means of GGA considering picking devices with heterogeneous load capacity. For this, an encoding scheme is proposed to represent in a chromosome the orders assigned to batches, and batches assigned to picking devices. Likewise, the operators of the proposed algorithm are adapted to the specific requirements of the OBSPMP. Computational experiments show that the GGA performs much better than six order batching and sequencing heuristics, leading to function objective savings of 18.3% on average. As a conclusion, the proposed algorithm provides feasible solutions for the operations planning in warehouses and distribution centers, improving margins by reducing operating time for order pickers, and improving customer service by reducing picking service times.

A Heuristic Solution Approach to Order Batching and Sequencing for Manual Picking and Packing Lines considering Fatiguing Effect

In this research, we study an extended version of the joint order batching and scheduling optimization for manual vegetable order picking and packing lines with consideration of workers’ fatiguing effect. This problem is faced by many B2C fresh produce grocers in China on a daily basis which could severely decrease overall workflow efficiency in distribution center and customer satisfaction. In this order batching and sequencing problem, the setup time for processing each batch is volume-dependent and similarity dependent, as less ergonomic motion is needed in replenishing and picking similar orders. In addition, each worker’s fatiguing effect, usually caused by late shift and repetitive operation, which affects order processing times, is assumed to follow a general form of logistic growth with respect to the start time of order processing. We develop a heuristic approach to solve the resultant NP-hard problem for minimization of the total completion time. For order batching, a revised similarity index takes into account not only the number of common items in any two orders but also the proportion of these items based on the vegetable order feature. To sequence batches, the genetic algorithm is adapted and improved with proposed several efficient initialization and precedence rules. Within each batch, a revised nondecreasing item quantity algorithm is used. The performance of the proposed heuristic solution approach is evaluated using numerical instances generated from practical warehouse operations of our partnering B2C grocer. The efficiency of the proposed heuristic approach is demonstrated.