Integration of batch order picking and vehicle routing

Abstract

Functions in supply chain management are interrelated. This means that optimization of the decisions in these functions can benefit from integration of the decision problems. The most well-known integration is the combination of production scheduling and vehicle routing. As e-commerce is growing fast, the function, which proceeds vehicle routing, is not production but warehouse operations. Therefore, it is useful to study the integrated problem of order picking in the warehouse and vehicle routing. Order picking can be done in two ways: a picking route per customer order (called discrete order picking) or a picking route involving multiple customer orders (called batch order picking). The effect of batching is studied in this paper.