Layout Optimization of a Three Dimensional Order Picking Warehouse

The warehouse layout decision is important as it affects several aspects of warehouse performance such as material handling cost, space cost and storage capacity. We develop an algorithm that determines lane depth, number of storage levels, lateral depth and longitudinal width of a three dimensional order picking warehouse minimizing space and material handling costs. The algorithm is illustrated with an example. Effect of variation of a set of parameters on the optimal layout decision is studied.