E-commerce Warehouse Optimization: A Warehouse Division Strategy Based on Multi-Objective Optimization

In the realm of e-commerce supply chain management, effective warehouse planning is a pivotal element in enhancing product supply efficiency and controlling costs. This paper centers on product demand forecasting and warehouse allocation planning, to optimize warehouse resource distribution for efficient inventory management and cost-effective order fulfillment. In the first stage, an LSTM model predicts monthly inventory levels and daily sales quantities. In light of these predictions, the study investigates a 'one product, multiple warehouses' strategy. It presents a multi-objective optimization model that permits each product category to have up to three warehouses in which to store. Warehouse capacity utilization, production capacity, warehouse rental cost, and inter-category relationship are considered in the optimization objectives including maximizing warehouse capacity utilization, optimizing production capacity, and minimizing warehouse rental costs. The model employs the NSGA-II algorithm to regain the utilization of the warehouse and reduce product dispersion effectively, leading to a good balance of warehouse utilization and cost resulting in better overall logistics performance.