Warehousing Strategies - A Simulation Study

Abstract: Purpose: Examine the effects of different warehousing strategies. Problem: What effects can be seen through the use of different warehousing strategies based on different customer behavior? Method: The simulation methodology used was based on Banks’ line of action. The methodology regarding design of experiment was based on Montgomery’s recommendations. Objective: Quantify the picking efficiency gains associated to different warehousing strategies in a generic warehouse. Conclusion: Customer behavior, as represented through customer order profiles, was more or less insignificant. Both slotting and viewing several customer orders at a time had major effects on both lead time, total pick time and total traveled distance.