Class-based storage with a finite number of item: using more classes is not always better

Y Yu, Rene de Koster, X (Xiaolong) Guo

Research output: Contribution to journalArticleAcademicpeer-review

69 Citations (Scopus)

Abstract

Class-based storage is widely studied in the literature and applied in practice. It divides all stored items into a number of classes according to their turnover. A class of items with higher turnover is allocated to a region closer to the warehouse depot. In the literature, it has been shown that the use of more storage classes leads to a shorter travel time for storing and retrieving items. A basic assumption in this literature is that the required storage space for all items equals their average inventory level, which is valid only if an infinite number of items can be stored in each storage region. This paper revisits class-based storage by considering each storage space to contain only a finite number of items. We develop a travel-time model and an algorithm that can be used for determining the optimal number and boundaries of storage classes in warehouses. Different from the conventional research, our findings illustrate that commonly a small number of classes is optimal. In addition, we find the travel time is fairly insensitive to the number of storage classes in a wide range around the optimum. This suggests that a manager can select a near-optimal number of storage classes in an easy way and need not be worried about the impact of storage-class reconfigurations. We validate our findings for various cases, including different ABC-demand curves, space-sharing factors, number of items, storage rack shapes, discrete storage locations, and stochastic item demand.
Original languageEnglish
Pages (from-to)1235-1247
Number of pages13
JournalProduction and Operations Management
Volume24
Issue number8
DOIs
Publication statusPublished - 1 Jan 2014

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