Minimization of Costs with Picking and Storage Operations

Abstract

This work presents two mixed-integer programming models that intend to minimize the costs of the picking and storage operation through better planning and organization of the places occupied by the products in the warehouse. A large customer that stores frozen goods in a Portuguese cold chain logistics company was selected for the analysis of the allocation of the products in the warehouse and of the corresponding outbound movements. Data with 8525 movements that occurred during 2021 were collected for 228 different product references. For this case study, the products that had a picking place in the initial scenario now have pallets with all the goods in the reserve area, and vice versa. The mathematical models were permitted to obtain savings for the logistics operator costs of around 30.9%. The proposed models can, in the future, be applied in other warehouse scenarios to companies in completely different sectors of activity.

Keywords

• logistics
• warehouse outbound movements
• storage operations
• picking
• mixed-integer linear programming
• mathematical model