Warehouse operation optimization-simulation model

This paper presents a warehouse optimization model based on a simulation software. The warehouse in study belongs to a leading logistics company in Vietnam and it aimed to increase order fulfilment productivity by 50% without further space expansion. The research team conducted onsite observation over three-month period. Current practice included random storage practice and lacking optimized picking route per order or multiple ones had been employed, hence resulting in low productivity in order fulfilment. Picking sequence was not optimized for minimum traveling and picking time. Picking process took up to 70% of total processing time of an order. Using a self-customized warehouse operation simulation called Anylogic, the team suggested several optimal picking sequences and batch picking for immediate improvement to the order picking process. For the long run, zone picking, hot-pick area, and pick sequencing are also recommended.