Optimal Batching in a Semi-Automated Order Picking System

As the materials handling revolution continues, the techniques of Management Science are finding more and varied application in the design and operation of production and distribution systems. This paper discusses the use of these techniques to batch orders in a semi-automated order-picking system of a Canadian provincial liquor board. The problem is formulated as a mixed-integer programming problem with the objective of arranging orders into batches so that the processing time is minimised. A sample problem is presented and solved, and computational aspects are discussed. Other possible application areas are outlined.