Storage Assignment Strategy To Reduce Travel Distance: Case Study In FMCG Distribution Center

A well–organized warehousing system maximizes the use of available storage space. Enhance storage arrangement further contributes to efficient space utilization. This approach not only maximizes storage capacity but also streamlines warehouse operations. This paper presents a storage allocation strategy designed to minimize travel distance during picking from the picking department and improve the convenience of retrieving items. The research collects data on stored items and performs ABC analysis to segment the SKUs into 3 classes based on their frequency in past order sets. Each class is then assigned to a specific area of the warehouse to optimize the total travel distance between storage locations and shipping gates. Results showed that the travel distance of the proposed layout has been reduced by 29% compared to that of the current layout. In addition, this study also provides a new perspective on calculating travel distance and storage allocation in three-dimensional space with an 8-level racking system, thereby expanding the application scope of the used method.