Allocating space in a forward pick area of a distribution center for small parts

Abstract

The forward pick area of a distribution center is a cache of conveniently located products from which order pickers can quickly draw, but which must be replenished from bulk or reserve storage. The quantities stored forward determine the amount of work required to sustain the forward pick area. Two stocking strategies that are commonly used in industry are analyzed and compared with the optimal stocking strategy for small parts.

Keywords:

• Warehousing
• distribution
• deterministic inventory theory
• forward pick area
• order picking

Acknowledgements

We thank the Office of Naval Research for its support through grant N000140710228 (Bartholdi), the National Science Foundation through grant DMI-0427446, The Supply Chain and Logistics Institute at Georgia Tech and its sister organization, The Logistics Institute Asia Pacific in Singapore. We appreciate the careful reading and insightful comments of the referees.