University of Twente Student Theses
Assessing Efficiency in Warehouse Order Picking : A Simulation-Based Approach
Nieuwenhuis, Daan (2024) Assessing Efficiency in Warehouse Order Picking : A Simulation-Based Approach.
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| Abstract: | This study presents a simulation model capable of evaluating order picking policies in warehouse operations. Order picking is the most time-consuming and costly activity in the warehouse, meaning efficiency improvements can lead to significant cost savings. Models in current literature mostly focus on a fix set of polices, where this study develops a simulation model that can test a wide variety of policies and can incorporate multiple relevant variables. A case study of a warehouse was performed, where a custom-made simulation model was developed, tailored to the specific operations of the warehouse. With this simulation model, a variety of policies can be evaluated on travel distance and other relevant variables. By gathering insights from a literature review and company experts, a set of polices was selected and simulated as scenarios using the simulation model. These scenarios are implementing class-based storage locations, splitting the warehouse into zones, and introducing a small bin. Only the split of the warehouse into zones and introducing a small bin show effective, and therefore they were further elaborated in business cases. This study validates the use of a simulation model for evaluating order picking policies, emphasizing the importance of tailoring models to specific organizational contexts. It identifies a new improvement area in picking cart capacity that is overlooked in current literature. For the case company, this study advocates a hybrid approach for storage location assignment, as a practical contribution. More general, this study contributes by demonstrating how companies can leverage data for decision-making, serving as a valuable example for those looking to become more data driven. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/102062 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
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