Guest article: Warehouse Performance Part 3/4

Christoph Feeser,

From optimized stock reservation to intelligent batch planning

In our last article, we introduced you to the topic of stock reservation as an initial optimization measure for more efficient warehouse performance. This time, we would like to look at the second phase, namely the optimization of batch planning for an intelligent picking strategy in the warehouse.

© S&P Computer Systems

The initial situation: Items from several orders are combined in multi-order picking and processed in one round.

Fig.1: Original picking status (e.g. processing date) © S&P Computer Systems

Picking itself can be carried out in 1-stage (order-oriented) or 2-stage (item-oriented). The classic compilation of order items for a transport unit and an employee is based on order priorities and compiles the next pending order items taking into account, for example, the volume of the transport unit. In most cases, this results in a large spread between the items to be picked. Figure 1 opposite shows the following scenario: the orders to be picked are arranged according to priority. Because the picking orders have not been strategically reserved within a local area or at least within an aisle, the employees of a transport unit cover long distances and usually have to pick throughout the entire warehouse area. The long travel times in particular account for a significant proportion of the picking time and have a negative impact on performance in the long term. This does not have to be the case!

One possible solution here is to optimize batch planning and thus answer the question: "Which order items should be planned for a transport unit so that the distances are minimal?"

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What does this look like in practice? The basis for this measure is formed by the planned picks as a result of the stock reservation. In the course of batch planning, these picks are strategically classified and put together in an optimized way so that as many order items or pre-calculated package parts as possible can be picked and, above all, as close together as possible (see Fig. 2).

Fig 2: Result after application of optimized batch planning © S&P Computer Systems

Strategic stock reservation and the consistent use of reservation results make it possible to implement batch planning in the best possible way. The aim is to put together strategically sensible combinations of pick orders on a transport unit within a round trip in order to reduce walking distances. This is primarily achieved by planning locally related orders together in one batch, but with the restriction that the planned batch is not larger than one transport unit. Optimized batch planning takes into account the same check sequences as the stock reservation, which are set using the customer's warehouse layout. Examples of one type of check level are "clean segment" or "clean level". At the same time, the permitted planning combinations of the segments are defined and specific threshold values for planning the next batches are configured, with the aim of increasing the quantitative throughput as much as possible and making optimum use of the available resources (e.g. people, trolleys).

The result: with optimized batch planning, incoming orders in the warehouse can be processed more quickly, with less travel time and less effort per order. In this way, you can make the best possible use of the potential in your warehouse and increase the overall efficiency of your warehouse.

Would you like to find out more about the consistent analysis and use of data in the warehouse? Then also read "Warehouse Performance: Warehouse Healing Strategy as the key to an intelligent warehouse! (Part 4/4)".

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