Order picking optimization with order assignment and multiple workstations in KIVA warehouses

We consider the problem of allocating orders and racks to multiple stations and sequencing their interlinked processing flows at each station in the robot-assisted KIVA warehouse. The various decisions involved in the problem, which are closely associated and must be solved in real time, are often tackled separately for ease of treatment. However, exploiting the synergy between order assignment and picking station scheduling benefits picking efficiency. We develop a comprehensive mathematical model that takes the synergy into consideration to minimize the total number of rack visits. To solve this intractable problem, we develop an efficient algorithm based on simulated annealing and dynamic programming. Computational studies show that the proposed approach outperforms the rule-based policies used in practice in terms of solution quality. Moreover, the results reveal that ignoring the order assignment policy leads to considerable optimality gaps for real-world-sized instances.