Optimising picking operations in distribution centres: a simulation and algorithm-based approach for travel distance reduction

Abstract

This study examines the pivotal role of the logistics sector in corporations, particularly those with diverse product portfolios. It focuses on the time-intensive “picking” process, driven by various products and material handling requirements for order fulfilment. The research presents a methodology that combines distribution centre modelling for simulation with an optimisation algorithm to enhance operational efficiency. The goal is to determine an optimal route for product retrieval, minimising employee travel distances, using the simulated annealing algorithm. The results showcase a significant 7 % reduction in employee travel distance during collection. This research is relevant to academia and practical applications as it presents an opportunity to reduce operational costs in distribution centres, enhance the efficiency of picking operations, and improve the competitiveness of companies. Furthermore, it contributes to operations research by addressing a complex problem with significant practical implications using a rather unused method to solve this problem of picking operations. The approach is empirically applied in a prominent Brazilian beverage company. This methodology proves valuable for optimising logistics operations in various industrial contexts, highlighting its practical applicability.