Multiproduct slot allocation heuristic to minimize storage space
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 4 March 2014
Abstract
Purpose
Since developing efficient product-location strategies represents a critical issue in operations management, due to its impact on warehouses performance in terms of both service level and operation costs, this paper aims to focus on possible improvements in the allocation of SKUs, numerically evaluating how these can lead to a reduction of both overall required warehouse space and material handling times.
Design/methodology/approach
The undertaken approach focused on translating the warehouse management problem into a vertex colouring problem, modelling it as a multi-criteria problem and solving it through a properly modified algorithm.
Findings
The heuristic validation on a real industrial case demonstrated its high optimization potential, and its benchmarking simulations showed performances significantly close to the best conceivable case. Indeed, though using a dedicated storage policy, the gained optimization value turned to be definitively close to the lower bound calculated through a randomized storage policy, which, differently from the proposed solution, must be inevitably supported by a warehouse management system software.
Originality/value
This work presents an original multiproduct slot allocation heuristic developed by taking cue from vertex colouring problems and its pragmatic evaluation on a real industrial case; a benchmark with the randomized storage policy is also presented in order to underline the heuristic effectiveness and to point out possible future research opportunities.
Keywords
Citation
Battista, C., Fumi, A., Laura, L. and M. Schiraldi, M. (2014), "Multiproduct slot allocation heuristic to minimize storage space", International Journal of Retail & Distribution Management, Vol. 42 No. 3, pp. 172-186. https://doi.org/10.1108/IJRDM-03-2012-0024
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited