An integrated approach for warehouse operations and flexible workforce scheduling using simulation optimisation (R-6820)

A warehouse is a facility where activities of receiving, storage, order picking and shipping are performed, often by human operators. Although literature on warehousing is extensive, its main focus is on warehouse design and individual warehouse processes. The different warehouse operations are not being studied in an integrated way. However, optimizing each warehouse operation separately may lead to a suboptimal solution for the total warehouse. This project aims to develop an integrated model for warehouse operations, determine the impact of decisions on the level of an individual warehouse operation on the total warehouse and optimize the warehouse as a whole. Workforce scheduling studies are rather limited in the literature on warehousing. Most warehouses use a sequential approach to workforce scheduling: the amount of work in the warehouse is calculated and next the required number of staff is determined by the human resource department. Drawbacks induced by inaccurate knowledge of skill requirements and task flexibility cannot be addressed at present. Considering detailed task requirements and personnel rostering models, while optimizing warehouse operations has potential to yield significant efficiency gains. Relaxing the time windows of some tasks, or cross training people, may enable smoothly leveled staffing and reduce the overall workforce. In this project, a new workforce scheduling model will be developed and incorporated in the model for warehouse operations.

Keywords:Distribution logistics, Operations research, Simulation

Disciplines:Applied economics, Economic development, innovation, technological change and growth, Economic history, Macroeconomics and monetary economics, Microeconomics, Tourism