Design of an order-picking warehouse factoring vertical travel and space sharing

This paper considers the layout design problem of a single block order-picking rack-based warehouse that employs turnover-based storage assignment in both vertical and horizontal dimensions. An analytical expression for vertical travel distance is derived which is incorporated in the pick distance model. The effect of inventory staggering on storage space requirement is considered in arriving at warehouse dimensions. A model that incorporates area cost along with handling cost in optimizing warehouse design is developed and a solution algorithm is presented. The analytical model for vertical travel and the optimization model are applied to data from a real life case. It was found that the model would offer considerable operational cost savings, especially when space costs are high. Computational experiments show that the effect of inventory staggering is quite significant in the estimated storage space. Experiments also demonstrated the importance of segregating products based on turnover in the vertical dimension