Routing optimization for warehouse order picking via simulation

This paper addresses a routing optimization problem for order picking in a conventional warehouse managed by a third party logistics company for a manufacturing organization. It strives to identify optimal vehicle routes to pick materials that are stored based on commercial Enterprise Resource Planning (ERP) software system. We consider optimal vehicle routes obtained by theoretical models, which will then be evaluated under realistic conditions. In addition, we develop a simulation model and propose several alternative routing strategies. All routing strategies are then evaluated by running a simulation and conducting output analyses. The best strategies identified will help to minimize the total travel time and cost associated with traveling and material picking within the warehouse.