Order picking is the most costly activity in a typical distribution center. This project focused on the development of a slotting approach that is based on order sequences. A mathematical model of the problem is formulated and solutions are compared to several heuristics in order to illustrate the value of an order-based slotting approach. Preliminary results on a large scale data set show a picking cost savings between 15-3% over a manual approach.
The goal for this project is to analyze current forecasting methods used in a process, to improve forecasting and inventory management techniques and to develop a prototype decision support system (DSS) that provide benchmarks of changes made.