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Order processing and order picking Chen Zhou April 24, 2004 Objective To understand the challenges in order picking To understand the strategies in order picking To link the strategies with our key measures: pick density and sku density Generate Availability Loca tion Order processing

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Order processing and order picking l.jpg

Order processing and order picking

Chen Zhou

April 24, 2004


Objective l.jpg

Objective

  • To understand the challenges in order picking

  • To understand the strategies in order picking

  • To link the strategies with our key measures: pick density and sku density


Order processing l.jpg

Generate

Availability

Loca tion

Order processing


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Another form of pick list: sequenced labels

  • Sequenced sticky labels


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Other form or pick list

  • Data table for PLC for pick to light

  • Sequenced voice instructions to pick to voice (later)

  • Instructions to automated systems


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Issues in order processing

  • Objectives

    • Minimize travel (or other handling)

  • Subject to

    • Time window, batch to waves

      • Day in a week

      • Departing time

      • Items to pass to other DCs

  • WMS normally support this function.

    • It requires customization and adaptation


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Order picking


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Order picking

  • Most demanding operation ~ 55% of operation cost

    • Amazon.com

    • Office depot

    • Big-box retailer DCs

    • Spare parts DC

    • Grocery DC

  • Why does picking cost more than put away?


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How does storage affect picking

  • Type of equipment affect sku density

  • Sku density affect pick density

  • Slotting affect travel


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Simple strategy: one-order-one-picker

  • Pick one-line at a time

  • Pick-pack-ship one customer order at a time

    • Straightforward

    • Small orders: low pick density (Amazon)

    • Large orders: Wal-Mart store order


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Order picking strategy: fast pick area

  • Fast pick or forward area: low volume + reserve + restocking

  • Higher pick density in forward

  • Infrequent replenishment from reserve with large volume

  • Double handling

  • Models in the book: which one should go to fast pick and how much to put there for a fixed fast pick area

Reserve

Forward/

Fast pick

Restock


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Batch picking: multiple-order–one-picker

  • Batch picking

    • Combine small orders into the same trip

      • Higher pick density

      • Orders of small items (relative to the equipment)

      • If orders are mixed during picking, sorting is needed later


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Batch picking of large orders with truck


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Batching picking with push carts

Pick to order specific containers, no sorting is required afterwards


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Time based batching: wave picking

  • Many DCs organize batches based on time window

    • Truck/ship/train departure times

    • Shifts

    • Cycle times

    • Delivery requirements

  • Designations

    • Beijing wave

    • 10 AM wave

    • Yellow wave


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Zone picking: one-order-multiple-picker

  • Zone can be for multiple order also (batching + zoning)

    • Can achieve extremely high pick density

    • Sorting is needed if not into order specific containers


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Schematic of a picking zone

Pick module

Forward

Reserve

Sort to shipping

docks

Receiving docks


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Restock

Restock

pick

pick

pick

A graphical view of a pick module

  • A case picking zone


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No Sorting is required

Sorting is required

Zone picking


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Increase accuracy

Reduce search time

More zone picking, station lighting


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Put-to-light

  • Open a case, put items into light indicated boxes

  • Similar to zone picking with changing skus in a zone

Put as indicated


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A frame

Automated dispensing

Automated picking with A - Frame


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Sorting

  • Manual

  • Barcode directed

  • Vision directed

  • High speed sorters


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Sorting: High Rate Tilt Tray

  • 12,000 items/hr.

  • Unit sorter

  • Can sort to two sides


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Shoe sorter

High speed conveyor sorters

Roller sorter


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Checking, packing and packaging


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Shipping


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Pick to conveyor, sorting is

required downstream.

How would you characterize this?


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Automated order fulfillment initiation

  • Container types

  • Labels and tracking


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A frame

Automated dispensing

Automated picking with A - Frame


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Packing


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Shipping


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Other: returns


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Expected piece sales for the top 500 items

366,756

400,000

350,000

300,000

250,000

Sales

200,000

150,000

100,000

4,582

50,000

0

500th sku by piece sales

top sku by piece sales

Pareto chart ($, cases, picks, …)


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Conveyors in DCs

  • Conveyors become more and more popular

  • In the states, a DC can have miles of conveyors


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What does conveyor do?

Pick module

Sort to shipping

docks

Receiving docks


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Cont.

  • Conveyors

    • Transport

    • Buffer

    • Extends the good locations throughout the facility

    • Can yield very high throughput

  • Important for high throughput systems

  • Design issues


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Order picking summary

  • Pick list generation

  • Order picking strategies

    • Batching

    • Zoning

    • Forward/reserve

    • Common pick area

  • Order picking technologies

    • Pick to light/put to light

    • Pick to voice

    • Automated order assembly systems

    • Pick modules


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Warehousing Summary

  • Warehousing and DC

  • Operations: inventory, flow line dynamics, scheduling, planning

  • Time + Spatial problem

    • Distances,

    • Contours,

    • COI based assignments

    • Storage methods

    • Order picking strategies


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Order picking

  • Forward/reserve

    • Which sku?

    • Space sharing for given sku and V

    • General problem

    • Common pick area

  • Batch picking

    • Batch size, lot sizing, worker and route schedule,

  • Zone picking

    • (Dynamic) line balancing problem

  • Readings and home works


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