Improving Retail Warehouse Activity by Using Product Delivery Data

Abstract

This paper presents a research study which is dedicated to the improvement in retail warehouse activity. This study aims to improve activity by identifying an efficient order picking strategy. (1) Background: The literature review shows the application of order picking strategies, but research related to their selection lacks an integrated approach. (2) Methods: The authors use the discrete event simulation method for the analysis of order picking strategies. The application of the discrete event simulation method enables various scenario tests in retail warehouses, allowing one to benchmark order picking strategies. By using the simulation model, experiments were designed to evaluate order picking strategies that are dependent on the delivery of the product distance variable. This research uses analysis of cost components and helps to identify the best possible order picking strategy to improve the overall warehouse performance. The authors benchmarked order picking strategies and presented constraints following product delivery data concerning their applications. (3) Results: The results presented show that the application of the order sorting strategy delivers 46.6% and the order batching strategy 6.7% lower costs compared to the single picking strategy. The results of the order batching strategy could be improved by 8.34% when the product clustering action is used. (4) Conclusions: The authors provide a theoretical framework which follows the application of order picking strategies using the product delivery data approach, which is the main scientific novelty of this paper. Recommendations are provided regarding the application of the proposed framework for the future improvement in retail warehouse activity.