An Evaluation of Routing and Volume-based Storage Policies in an Order Picking Operation

ABSTRACT Order picking, the assembly of a customer's order from items in storage, is an essential link in the supply chain and is the major cost component of warehousing. The critical issue is to simultaneously reduce the cost and increase the speed of the order picking activity. This study departs from the limited prior research that focused on either routing of workers or storage of warehoused items. The main objectives are to (1) evaluate various routing heuristics versus an optimal routine in a volume‐based storage environment, (2) propose several methods of implementing volume‐based storage, and (3) examine the interaction of the routing and storage policies under different operating conditions of pick list size and demand skewness. The experimental results show statistically significant differences in the mean route distance for the routing policies, storage policies, and their interactions. Further testing indicates that the choice of certain routing and storage policies in combination can result in increased picking efficiency.