Improving order‐picking performance through the implementation of class‐based storage

TLDR

Class‑based storage partitions SKUs into demand‑based classes and randomly assigns locations within each class area. The study compares CBS to random and volume‑based storage in a manual order‑picking warehouse and examines other operational factors affecting performance. The authors simulate the warehouse, varying the number and partition of storage classes and the implementation strategy to assess their impact. Simulation results show that CBS reduces picker travel relative to random storage and approaches the performance of volume‑based storage, providing managers with actionable insights for distribution center operations.

Abstract

Class‐based storage (CBS) partitions stock‐keeping units (SKUs) into storage classes by demand and randomly assigns storage locations within each storage class area. This study compares the performance implications of CBS to both random and volume‐based storage (VBS) for a manual order picking warehouse. In addition, this study considers the effect of the number of storage classes, the partition of storage classes, and the storage implementation strategy applied in the warehouse. The simulation results show that CBS provides savings in picker travel over random storage and offers performance that approaches VBS. Other operational issues having an impact on warehouse performance are examined. The results offer managers insight for improving distribution center operations.