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http://dx.doi.org/10.9709/JKSS.2011.20.2.067

An Evaluation of Routing Methods and the Golden Zone Effect in the Warehouses Order Picking System  

Li, Jin (고려대학교 산업경영공학부)
Lee, Yong-Dae (현대모비스 경영혁신실)
Kim, Sheung-Kown (고려대학교 산업경영공학부)
Abstract
Order picking in automotive service parts warehouses is considered to be the most labor-intensive operation. Such warehouses contain hundreds of thousands of items, but normally 20% of products contribute to about 80% of turnover according to Pareto's 80-20 principle. Therefore most fast moving items are located near an outbound area which is called the "Golden Zone". Order picking routing efficiency is related to productivity and labor cost. However, most companies use simple methods. In this paper, we describe a series of computational experiments over a set of test cases where, we compared various previously existing routing heuristics to an optimal algorithm. We focus on examining the influence of the golden zone on the performance and selection of routing methods. The results obtained show that the optimal routing method increases the productivity at least 17.2%, and all the routing methods have better performance as the pick up rate from the golden zone increases.
Keywords
Golden zone; Order picking; S-shape; Mid-Point; Largest gap; Warehouse layout;
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