A Comparative of Mathematical Model for Solving the Optimal Lane Depth with the Infinite and the Finite Production Rate Model: A Case Study of the ABC Warehouse
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Abstract
Warehouse management costs are the major cost in the logistics system. The main activity in the warehouse is storage, which comes with different storage systems ranging from block stacking to automated storage. This study are concentrated on block stacking system, because of its widespread use, high flexibility, low cost and suitability for high inventory turnover. However, it causes potential loss of storage space within the warehouse that affects the facility's space utilization. Designing a block stacking system by determining the optimal lane depth is one way to solve the problem. However, studies on determining the optimal lane depth under the finite production rate constraint has not been carried out so far. This research applied two mathematical models to compute the optimal lane depth, the infinite model (P = ∞) does not consider the production rate but the finite model (P ≠ ∞) does in order to compare the average waste of storage space. It has been found that the finite model gives less average waste of storage space than its counterpart.
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References
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