Designing Efficient Order Picking Systems by Combining Planning Problems: State-of-the-art Classification and Review

Abstract

Warehouses deliver labor-intensive services to customers. Underperformance may result in high costs and unsatisfied customer demand. New market developments force warehouses to handle a large number of orders within tight time windows. To cope with this, order picking operations need to be optimized by solving a wide range of planning problems. Optimizing order picking planning problems sequentially may yield a suboptimal overall warehouse performance. Still, previous warehouse planning reviews focus on individual planning problems. This literature review differs by investigating combinations of multiple order picking planning problems. A state-of-the-art review and classification of the scientific literature investigating combinations of tactical and operational order picking planning problems in picker-to-parts systems is presented with the aim of determining how planning problems are related. Furthermore, this literature review aims to find excellent policy combinations and to provide guidelines how warehouse managers can benefit from combining planning problems, in order to design efficient order picking systems and improve customer service. Combining multiple order picking planning problems results in substantial efficiency benefits, which are required to face new market developments.