Design of the fast-pick area

Based on Bartholdi & Hackman, Chpt. 7

The fast-pick or forward-pick or primar -pick area

!estocking !ecei"ing

%rimar picking &hipping $orward pick #rea

!eser"es picking !eser"es #rea

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

) # forward pick area increases the pick densit ( concentrating a large n*m(er of &+,-s within a small ph sical 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 deplo ment re/*ires some capital in"estment in e/*ipment and 0e1tra2 space.

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

# fl*id model for determining the optimal 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@7,A,n 0c*(ic ft2 s.t. total restocking cost 0rate2 is minimiBed 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

%ro(lem form*lation
min

=i c=r C 0a"erage n*m(er of replenishments per

for &+, i2 @

ear

=i c=r C 0f=i > *=i2

s. t.

=i *=i
.ptimal &ol*tion<

; *=i D, i

i, *=i @ 0 f=i > =k f=k2 C ;

#ccommodating minim*m 0and ma1im*m2 allocation constraints

) 0e.g., we cannot allocate to an &+, a "ol*me less than that re/*ired for storing at least one *nit2 ) &ol*tion algorithm for accommodating minim*m allocation constraints
: Edentif those &+,-s that recei"ed less than their minim*m re/*ired space, when sol"ing the pro(lem witho*t considering these constraints. : Encrease the allocations of these deficient &+,-s to their minim*m re/*irements, and remo"e them as well as their allocated space from an f*rther consideration. : !e-allocate the remaining space among the remaining &+,-s.

) # similar t pe of logic can (e applied for the accommodation of constraints imposing a ma1im*m allocation

!emarks
) The fraction of fast-pick storage de"oted to &+, i< f=i > =k f=k ) .ptimal n*m(er of replenishment trips per ear for &+, i< f=i > *=i @ 0 f=i C =k f=k2 > ; ) Fach *nit of the fast-pick storage sho*ld (e restocked at the same rate< .ptimal n*m(er of restocks per ear per c*(ic ft for &+, i @ 0f=i > *=i2 > *=i @ f=i > 0*=i2G6 @ 0=k f=k2G6 > ;G6 i.e., independent of i. This res*lt can (e *sed for a /*ick assessment of the optimalit of the c*rrent allocation in a fast-pick area, ( considering how 0spatiall 2 (alanced is the replenishment effort.

.ther he*ristics *sed in practice for resol"ing the 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< #ssign each &+, an e/*al-time s*ppl , so that each &+, inc*rs the same n*m(er of restocking trips per ear. *=i @ 0f=i > =k f=k2 C ;, f=i > *=i @ i Hence, n*m(er of trips per ear for &+, i,

0=k f=k2 > ;

Comparing the performance of the he*ristics and the optimal optimal sol*tion
) %erformance of the optimal sol*tion<

=i f=i > *=i @ 0=i f=i2G6 > ;

) %erformance of the e/*al-space allocation he*ristic<

=i f=i > *=i @ n C 0=i f=i2 > ;

) %erformance of the e/*al-time allocation he*ristic<

=i f=i > *=i @ n C 0=i f=i2 > ;

# statistical assessment of the s*(-optimalit of 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=i is an independent sample from a random "aria(le H with mean m and "ariance sG6. Then, the a(o"e ratio is appro1imated ( < mG6 I sG 6 @ 7 I C;G6 mG6 Hence, the more di"erse the rates of flow of the "ario*s &+,-s, the more s*(-optimal is the performance of the two he*ristics.

&electing the &+,-s to (e accommodated in the fast-pick area

) To resol"e this iss*e, one m*st /*antif the net (enefit of ha"ing the &+, in the fast-pick area "s. doing all the picking from the reser"e. ) This is done as follows< Jet
: : : : ;< ;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< cost of each restock trip 0?>trip2 s< the sa"ing realiBed when a pick is done from the forward area rather 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@7,A,n 0c*(ic ft2 Then, the net ann*al (enefit of allocating fast-pick storage *=i to &+, i, is< D if *=i @ D c=i0*=i2 @ sCp=i - c=rC0f=i > *=i2 if *=i L D 0?> ear2

%lotting the net (enefit f*nction

c=i0*=i2

0c=rCf=i2 > 0sCp=i2 < minim*m "ol*me to (e stored, if an *=i

%ro(lem $orm*lation
ma1 =i c=i0*=i2 s.t.

=i *=i
# near-optimalit condition<

*=i D, i

The &+,-s that ha"e the strongest claim to the fast-pick area are those with the greatest "iscocities, p=i > f=i.

#lgorithm for comp*ting a near-optimal sol*tion

) &ort all &+,-s from most "isco*s to least 0p=i > f=i2 ) $or k @ D to n 0total n*m(er of &+,-s2<
: Comp*te the optimal allocation of the fast-pick storage if it accommodates onl the first k &+,-s of the ordering o(tained in &tep 7. : F"al*ate the corresponding total net (enefit.

) %ick the "al*e of k that pro"ides the largest total net (enefit.

%ro"ing the near-optimalit of the &+, selection algorithm

Theorem< Choosing &+,-s (ased on their "iscocit p=i > f=i, will lead to an o('ecti"e "al*e B s*ch that< BC - B net (enefit of a single &+, ma1=i 0sCp=i2 where BC denotes the optimal o('ecti"e "al*e. ) 4hen there are man &+,-s, the net (enefit associated with a single &+, will (e a "er small>negligi(le fraction of the o"erall net (enefit.

Determining the .ptimal &iBe of the $ast-%ick #rea

) Basic trade-off< # larger fast-pick area means more &+,-s in it at larger "ol*mes, and therefore, more picks from it and less restocking, (*t at the same time, the cost per pick increases. ) #n anal tical form*lation of the *nderl ing optimiBation pro(lem< s @ g0;2 where g0 2 is a decreasing f*nction of ; ) Jinear storage models< s @ a - (C; constit*te a "er good appro1imation of the dependenc of sa"ings per pick on the "ol*me of the fast-pick area for fast-pick areas organiBed in a linear fashion, e.g., an aisle of flow rack.

CharacteriBing the optimal storage siBe for linear models of storage

) Theorem< $or linear models of storage 0e.g., adding (a s to an aisle of flow rack2, the optim*m siBe of the fast pick area is gi"en ( ;C @ c=r =0i@72Gk f=i > 0 ( =0i@72Gk p=i2 for some n*m(er k of the most "isco*s sk*-s and where ( is the decreasing rate of the pick sa"ings per "ol*me *nit of the fast pick-area.

#n algorithm for optimiBing "ol*me siBe, &+, set, and space allocation of a fast-pick area for small-item picking
) !ank all the n candidate &+,-s in decreasing "iscocit ) $or k@D to n, consider the set of the k most "isco*s &+,-s and comp*te<
: the optimal storage siBe ;Gk, corresponding to this &+, selection 0e.g., ;Gk @ ;C @ c=r =0i@72Gk f=i > 0 ( =0i@72Gk p=i2 : the optimal allocation of ;Gk to the corresponding &+, s*(-set 0e.g., for i@7 to k, *=iGk @ 0 f=i > ='@7Gk f='2 C ;Gk 2 : the res*lting total (enefit 0e.g., =i@7Gk Ms0;Gk2 p=i - c=r f=i > *=iGk N 2

) %ick the "al*e of k, denoted ( kC, that corresponds to the ma1imal total (enefitO set ;C @ ;G0kC2 and *=iC @ *=iG0kC2, for i@7 to kO D, otherwise

Designing a fast-pick area for pallet storage< The case-pick-from-pallet polic

) Ef no pallets are in the fast-pick area, then all picks are from the (*lk storage. ) Ef some (*t not all pallets are in the fast-pick area, then all picks for less-than-pallet /*antities are from the fast-pick area, and all picks for f*ll-pallet /*antities are from the (*lk storage area. ) Ef all the pallets are in the fast-pick area, then all picks, (oth for less-than-pallet /*antities and for f*ll-pallet /*antities, are from the fast-pick area.

4h the fl*id model will not work

) +e o(ser"ation< 4hen material is stored in pallets in the fast-pick area, each replenishment trip will correspond to a single *nit load ) @L En this case, a more acc*rate meas*re for the res*lting replenishment trips is the n*m(er of pallets mo"ed thro*gh the fast-pick area 0instead of f=i>*=i that we *sed for smallitem picking2.

) %arameters
: : : : : : : :

& nthesiBing the corresponding net-(enefit f*nction

P @ siBe 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<

c=i01=i2 @

D s p=i - c=r d=i s 0p=iID=i2

if 1=i @ D if D Q 1=i Q *(=i if 1=i @ *(=i

.ptimal &+, selection and fast-pick storage allocation

ma1 =i c=i01=i2 s.t.

=i 1=i

1=i KD, 7, A, *(=iR , i

%lotting the net-(enefit f*nction

net (enefit

s 0p=iID=i2

s p=i - c=r d=i

*(=i-7

*(=i

n*m. of pallets

CharacteriBing the .ptimal &ol*tion

) Theorem 0The law of none or one or all2< Fach &+, that is picked from pallets sho*ld either not (e in the fast-pick area at allO or it sho*ld ha"e onl one pallet in itO or it sho*ld ha"e all of its on-hand in"entor in it. ) !emark< The theorem can (e immediatel e1tended to the case that a minim*m threshold is set for the n*m(er of pallets from &+, i stored in the fast-pick area, l(=i. En that case, the three possi(ilities are< D, l(=i and *(=i.

# &ol*tion #lgorithm
) #ss*ming n &+,-s, let si KD,7,6R denote whether
&+, i is allocated D, l(i, or *(i locations, respecti"el .

) 9enerate all the possi(le strings< s7&6A&n, and for each s*ch string : assess its feasi(ilit : and if feasi(le, the corresponding total net (enefit. ) %ick a feasi(le string that ma1imiBes the total net (enefit. !emark< ,nfort*natel , the algorithm comple1it is e1ponential w.r.t. the n*m(er of &+,-s, since the n*m(er of t*ples that m*st (e checked, at least for feasi(ilit is e/*al to 8Gn.