Improving Order-picking Operations with Precedence Constraints through Efficient Storage Location Assignment Evidence from a Retail Company

This paper is inspired by a manual picking retail company where shape and weight constraints affect the order-picking process. We proposed an alternative clustering similarity index that considers the similarity, the weight and the shape of products. This similarity index was further incorporated in a storage allocation heuristic procedure to set the location of the products. We test the procedure in a retail company that supplies over 191 stores, in Northern Portugal. When comparing the strategy currently used in the company with this procedure, we found out that our approach enabled a reduction of up to 40% on the picking distance; a percentage of improvement that is 32% higher than the one achieved by applying the Jaccard index, a similarity index commonly used in the literature. This allows warehouses to save time and work faster