Fast Pick Area

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    The fast-pick or forward-pick orprimar-pick area

    !eser"es

    #rea

    $orward pick#rea

    !ecei"ing

    !estocking%rimarpicking

    !eser"espicking

    hipping

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    The ma'or trade-offs (ehind theesta(lishment of a forward pick area

    ) # forward pick area increases thepick densit(

    concentrating a large n*m(er of +s within a small

    phsical space.

    ) n the other hand, it introd*ces the acti"it of restocking.

    ) #lso, in general, a forward pick area concerns the picking

    of smaller /*antities and in"ol"es more sophisticated

    e/*ipment than the picking acti"it taking place in the

    reser"es area. o, its deploment re/*ires some capital

    in"estment in e/*ipment and 0e1tra2 space.

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    3a'or iss*es to (e resol"ed

    ) 4hich +s to store in the fast-pick area5 062

    ) How m*ch of each + to store5 02

    ) How large sho*ld (e the fast-pick area5 082

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    # fl*id model for determining theoptimal allocation of forward-pick

    storage to a pre-determined set of +s) 9i"en

    : ;< ;ol*me of entire forward-pick storage area 0e.g., in c*(ic ft2

    : f=i< $low of + i, 0e.g., in c*(ic ft > ear2

    : c=r < replenishment cost 0?>replenishment trip2) Determine

    : *=i< storage "ol*me to (e allocated to + i, i@,A,n 0c*(ic ft2

    s.t. total restocking cost 0rate2 is minimied 0?>ear2

    ) #dditional ass*mptions: !eplenishment for each + occ*rs at lots e/*al to *=i, and occ*r

    instantaneo*sl *pon the complete depletion of the pre"io*s lot

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    %ro(lem form*lation

    min

    =i c=r 0a"erage n*m(er of replenishments per earfor + i2 @

    =i c=r 0f=i > *=i2s. t.

    =i *=i ; *=i , i

    ptimal ol*tion =k f=k2 ;

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    #ccommodating minim*m 0andma1im*m2 allocation constraints

    ) 0e.g., we cannot allocate to an + a "ol*me less than thatre/*ired for storing at least one *nit2

    ) ol*tion algorithm for accommodating minim*mallocation constraints: Edentif those +s that recei"ed less than their minim*m

    re/*ired space, when sol"ing the pro(lem witho*t consideringthese constraints.

    : Encrease the allocations of these deficient +s to their minim*mre/*irements, and remo"e them as well as their allocated spacefrom an f*rther consideration.

    : !e-allocate the remaining space among the remaining +s.) # similar tpe of logic can (e applied for the

    accommodation of constraints imposing a ma1im*mallocation

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    !emarks

    ) The fraction of fast-pick storage de"oted to + i =k f=k) ptimal n*m(er of replenishment trips per ear for + i *=i @ 0f=i =k f=k2 > ;

    ) Fach *nit of the fast-pick storage sho*ld (e restocked atthe same rate *=i2 > *=i @ f=i > 0*=i2G6 @ 0=k f=k2G6 > ;G6

    i.e., independent of i. This res*lt can (e *sed for a /*ickassessment of the optimalit of the c*rrent allocation in afast-pick area, ( considering how 0spatiall2 (alanced isthe replenishment effort.

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    ther he*ristics *sed in practice for resol"ingthe fast-pick storage allocation pro(lem

    ) F/*al-pace #llocation< #ssign each + the same

    amo*nt of space, i.e.,

    *=i @ ; > n, i

    ) F/*al-Time #llocation =k f=k2 ;, i

    Hence, n*m(er of trips per ear for + i,f=i > *=i @ 0=k f=k2 > ;

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    Comparing the performance of thehe*ristics and the optimal optimal sol*tion

    ) %erformance of the optimal sol*tion *=i @ 0=i f=i2G6 > ;) %erformance of the e/*al-space allocation he*ristic *=i @ n 0=i f=i2> ;) %erformance of the e/*al-time allocation he*ristic *=i @ n 0=i f=i2> ;

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    # statistical assessment of the s*(-optimalitof the e/*al-space>time allocation

    %erf. of he*ristics > %erf. of optimal sol. @ =i f=i > n

    0=i f=i > n2G6

    #ss*me that each f=iis an independent sample from a random

    "aria(le with mean mand "ariance sG6. Then, the a(o"e ratio is

    appro1imated ( ear2: c=r< cost of each restock trip 0?>trip2

    : s< the sa"ing realied when a pick is done from the forward arearather than the reser"e 0?>pick2

    : p=i< the e1pected ann*al picks for + i 0picks>ear2

    : *=i< storage "ol*me to (e allocated to + i, i@,A,n 0c*(ic ft2Then, the net ann*al (enefit of allocating fast-pick storage *=i to +i, is *=i2 if *=i L 0?>ear2

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    %lotting the net (enefit f*nction

    *=i

    c=i0*=i2

    0c=rf=i2 > 0sp=i2 < minim*m "ol*me to (e stored, if an

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    %ro(lem $orm*lation

    ma1=i c=i0*=i2s.t.

    =i *=i ; *=i , i

    # near-optimalit condition

    f=i.

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    #lgorithm for comp*ting a near-optimalsol*tion

    ) ort all +s from most "isco*s to least 0p=i > f=i2

    ) $or k @ to n 0total n*m(er of +s2 ='@Gk f='2 ;Gk 2: the res*lting total (enefit

    0e.g., =i@GkMs0;Gk2 p=i - c=r f=i > *=iGk N 2) %ick the "al*e of k, denoted ( k, that corresponds to the

    ma1imal total (enefitO set ; @ ;G0k2 and

    *=i @ *=iG0k2, for i@ to kO , otherwise

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    Designing a fast-pick area for pallet storage*=i that we *sed for small-item picking2.

    h i i h di

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    nthesiing the correspondingnet-(enefit f*nction

    ) %arameters

    : P @ sie of the fast-pick area 0in pallet storage locations2: p=i @ n*m(er of less-than-f*ll-pallet picks for + i

    : d=i @ n*m(er of pallets mo"ed ( less-than-f*ll-pallet picks for + i

    : %=i @ n*m(er of f*ll-pallet picks for + i

    : D=i @ n*m(er of pallets mo"ed ( f*ll-pallet picks for + E 0D=i @ %=i2

    : *(=i @ ma1im*m on-hand in"entor for + i 0in n*m(er of pallets2: s @ sa"ings per pick when picking from fast-pick area 0?>pick2

    : c=r @ cost of restocking trip 0?>trip2

    ) %rimar Decision "aria(les: 1=i @ n*m(er of pallets from + i to (e stored in the fast-pick area

    ) The net-(enefit f*nction for + i