Warehouse layout optimization: A case study based on the adaptation of the multi-layer Allocation problem

Warehouses are key points of logistic processes. The design of a warehouse is a complex problem. Itincludes a series of interrelated decisions among warehouse processes, warehouse resources and warehouseorganizations. This article deals with the implementation of the mathematical model for the Products AllocationProblem (PAP) in a multi-layer warehouse. The main goal of this work is the identification of the optimal warehouseconfiguration for a company operating in the sector of production and distribution of sports equipment andsportswear. The final aim of the layout optimization is the minimization of the handling costs and decentralizationcosts related to the stored products, which on turn depends on the assignment of products to the storage slots. Inorder to solve the PAP model, a preliminary ABC analysis has been carried out to identify more significant class ofproducts in terms of sales volume and handling movements. The consistency of the obtained solution has beensuccessively evaluated considering the cost saving that could be obtained implementing the new layout configuration.Different scenarios have been analysed and evaluated. Numerical cost results show a good quality solution.