Warehouse Control, Floor and Space Management

Each bin is very precious. Various articles of different dimensions have to be stored at the same time. They have to be available fast and efficiently when needed. Highly productive warehouse control and floor management using a coordinated tactic are the key criteria of the distribution center performance.

The main goal is to have the “good” articles in the “best” bins. What does it mean? Concepts like fast moving goods areas and ABC classification are well known in this respect, but there is still room for improvement. Based on standard timing all bins can be evaluated regarding their process expenditures. The critical point here is what article is assigned to what bin. Dedicated logistic algorithms for designing optimal assignments have achieved great results.
 
Using these combinatorial logistic algorithms it is easy to optimize distribution centers storing many thousands of bins and articles. Not only the algorithms, but also the estimation of the processes in the distribution center with standard timing is extremely important. When this evaluation is possible (based on real orders or forecasts) the overall process period can be calculated. It is not only about the algorithmic approach, but also about the designing entire DC structures.

  The process timing (e. g. MTM) can also be used to calculate the needed capacity of the staff. The latter combined with permanent, standardized reorganization processes can lead to optimal efficiency:

• Heuristics for defining the optimal bin location for a new article out of a pool of empty bins
• Optimization of layouts for areas in which promotion articles are being picked
• Calculation of a limited number of movements considering the need for continual relocation to achieve optimal productivity
• Besides the efforts put into picking, other criteria can also be used (quality, replenishment, changeover etc.)

All this has proven to be the base for finding the optimal bin location as a compromise between quality, replenishment, picking, changeover and relocation. These processes can be visualized, analyzed, tested and optimized with our web-based modeling and optimization tool W2MO^®.