A multi-step mixed integer programming heuristic for warehouse layout optimization

Warehouse layout optimization is critical to inventory and logistics management in organizations. In many instances, limited warehouse space is a constraint and a barrier to expanding operations and increasing demand. We present a multi-step solution using mixed integer programming to improve space utilization and increase order retrieval and fulfillment efficiency. We present a real-world case study to demonstrate the applicability and efficiency of the proposed mixed integer programming heuristics at a large distribution center. • Present a mixed integer programming solution for warehouse layout optimization. • Show warehouse layout optimization, increase capacity, and improve order retrieval and fulfillment. • Demonstrate scalability, flexibility, and adaptability to multiple warehouse inventory systems. • Present a case study to demonstrate the applicability and efficiency of the models at a large distribution center. • Show the optimal layout increases storage space and reduces average order picking distance.