Investigation of factors and consequences in the evaluation process for storage location assignment optimization

Optimizing Storage Location Assignment (SLA) is essential for improving warehouse operations, reducing operational costs, travel distances and picking times. The effectiveness of the optimization process should be evaluated. This study introduces a novel, generalized objective function tailored to optimize SLA through integration with a Genetic Algorithm. The method incorporates key parameters such as item order frequency, storage grouping, and proximity of items frequently ordered together. Using simulation tools, this research models a picker-to-part system in a warehouse environment characterized by complex storage constraints, varying item demands and family-grouping criteria. The study explores four scenarios with distinct parameter weightings to analyze their impact on SLA. Contrary to other research that focuses on frequency-based assignment, this article presents a novel framework for designing SLA using key parameters. The study proves that it is advantageous to deviate from a frequency-based assignment, as considering other key parameters to determine the layout can lead to more favorable operations. The findings reveal that adjusting the parameter weightings enables effective SLA customization based on warehouse operational characteristics. Scenario-based analyses demonstrated significant reductions in travel distances during order picking tasks, particularly in scenarios prioritizing ordered-together proximity and group storage. Visual layouts and picking route evaluations highlighted the benefits of balancing frequency-based arrangements with grouping strategies. The study validates the utility of a tailored generalized objective function for SLA optimization. Scenario-based evaluations underscore the importance of fine-tuning SLA strategies to align with specific operational demands, paving the way for more efficient order picking and overall warehouse management.