Using multi-criteria decision making for selecting picking strategies
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Using multi‑criteria decision making for selecting picking strategies Liseth Contreras Hernandez1 · Hanser S. Jiménez G.1 · Priscilla P. L. Dantas1 · Cristiano A. V. Cavalcante1 Received: 9 March 2020 / Revised: 24 July 2020 / Accepted: 8 September 2020 © Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Choosing an order picking strategy is one of the most important decisions related to warehouse management. Making this decision properly can lead to high standards of efficiency, since order picking represents more than a half of a wholesale and retail organization’s operational costs and consumes a huge amount of the resources allocated to warehouse labor. Moreover, some productivity and service-oriented objectives related to order picking are sometimes conflicting, and require managers’ preferences to be considered, thus making the decision problem multi-objective and complex. We put forward a multicriteria decision model based on the ELECTRE III method that supports how to choose an order picking strategy. It takes managers’ preferences into consideration and integrates all the core elements for assessing how picking is being performed. Results showed that the model is able to identify the strategy that yields the best compromise between the objectives of productivity and the service-oriented ones, and that this strategy also represents the organization’s aims. Keywords Warehouse optimization · Order picking · Multicriteria decision-making · Multi-objective · ELECTRE III
* Hanser S. Jiménez G. [email protected] Liseth Contreras Hernandez [email protected] Priscilla P. L. Dantas [email protected] Cristiano A. V. Cavalcante [email protected] 1
Department of Production Engineering, Federal University of Pernambuco, Av. Da engenharia, cidade universitária, Recife, PE, Brazil
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1 Introduction The operations environment of a warehouse faces many challenges. For instance, these include the increasing tendency to manage a larger number of products coupled with the quick response time being demanded by customers; the high variability of demand; the irregular flow of material; and consequently, a high volume of both small orders and orders placed by different type of customers (Rouwenhorst et al. 2000). Other important features of warehouse management are the complexity and the dynamism of the decision-making process itself. Warehouse management is complex because each activity must simultaneously achieve multiple objectives (e.g., optimize the use of resources, minimize response times, overcome physical limitations, etc.), and sometimes these objectives are conflicting. The warehouse environment is also dynamic because operational conditions could easily change, thus changing the decision-making characteristics, i.e., the relative importance of each objective may well change over time. The dynamism and complexity of this environment demand that decision-makers (DMs) make strategic decisions more carefull
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