The Improvement of Warehouse Management System to Determine Storage Location for the Product: A Case Study of Northeast Distribution Center

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อัจจิมา เชิดชม
ปณิธาน พีรพัฒนา

Abstract

The put away and order picking operation are very important activities in warehouse management since 55% of the overall cost in warehouse management come from order picking operation. This study presents methods to determine the storage location for put away and order picking operation in Warehouse Management System (WMS) to reduce traveling distance and increase space utilization. By applying the mathematical model with Lingo optimization software to determine the storage location for two policies; dedicated storage and random storage under certainty and uncertainty demand. The result shows that the total traveling distance and space utilization under certainty demand is slightly different while it shows significantly different under uncertainty demand in case of the random storage policy reduced traveling distance about 10% and increased space utilization up to 23%. Therefore, under uncertainty demand, the random storage policy is the most efficient in the warehouse management system of this study which can decrease warehouse management cost approximately 276, 000 THB per month.

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Research paper

References

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