Abstract

Considering time-varying demand of online retail industry, the traditional static storage location assignment is converted into a multistage storage location assignment process based on the idea of gradual and small-step-forward optimization, which can respond to rapid changes in demand by adjusting the storage location of SKUs in the warehouse in real time and dynamically. First, the study formulates the framework dynamic storage location assignment. Then, the adjustment gain model of dynamic storage location assignment is built, and a genetic algorithm is designed to find the final adjustment solution. Finally, the computer program is developed to simulate the whole process. Simulation and data analysis results show that dynamic storage location assignment can effectively improve picking efficiency when the average order size is small and large demand correlation strength. Dynamic storage location assignment simplifies the warehouse operation process by combining the picking operation and storage location assignment into one without changing the picker’s current walking route, which can offer some theoretical guidance for online retail enterprises implementing dynamic storage location assignment.