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Picking strategy break even point calculation - Business Processes

370 runs

Added by Yuriy Podvalny

Application area: Warehousing

Simulation method: Discrete Event

Picking strategy break even point calculation

The model allows to justify the choice of picking strategy. There are two primary strategies used on the majority of warehouses across the globe  - picking order-by-order (Strategy 1) and bulk picking with packing at pack table (Strategy 2). One of key factors which affect the efficiency of both strategies is the quantity of lines in order. Obviously for differently sized orders the most efficient strategy can also be different. Its also obvious that Strategy 1 is more likely better for big orders and Strategy 2 is more likely to be best for small ones.
The purpose of this model is to calculate the threshold. It allows to define explicitly the minimum size of the order (number of lines) for which Strategy 1 becomes more efficient than Startegy 2. In the end it helps to split the flow of warehouse orders, so that each order would be picked with the most efficient strategy.
The model can take as input parameters following unique warehouse characteristics: process timings, size of article master data, size of picking batch, average speed of picker.

The model was created with AnyLogic - simulation software / Warehousing

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