Warehouse management optimization using a sorting-based slotting approach

Abstract

Purpose: Slotting is one of the main operations in warehouse management. It is based on the efficient allocation of slots for stock-keeping units (SKUs). Order picking and slotting represent a high percentage of total logistics costs; therefore, improving these activities leads to significant savings in the overall performance. This paper aims to develop an allocation model integrating SKUs physical variables, warehousing design, and operation (dimensions, layout, material handling equipment), and heterogeneous product demand. Design/methodology/approach: The modeling methodology considers two phases. First, an integer linear programming model for warehousing spaces assignment for SKUs considering priority and required orders is developed. Then, the total operation times using different strategies are calculated. Findings: The effectiveness of the model was verified through simulation using historical data. The results showed that the best performance in the total time of the slotting operation is achieved by using the ABC as a criterion for the classification of the SKUs and by sequentially assigning the row, level, column, and the section. Practical implications: This approach can be adapted to different industrial sectors and serves as a basis for more robust models regarding the number of constraints or the incorporation of additional warehouse operating parameters. Originality/value: The most important contribution of this work is the development of a flexible and adaptable methodology to changes in the operation to improve the efficiency of storage management through slotting. Future work includes other objective functions of sustainable operations and uncertainty treatment techniques.

Keywords

• logistics optimization, picking, slotting, warehouse management, linear programming model