Abstract
Reducing customer response time, lowering overall logistic costs, and raising customer service standards are all partly attributable to innovative methods for increasing order-picking efficiency. This paper focuses on the storage allocation issue to determine the optimal stock-keeping-unit (SKU) inventory level and the storage assignment problem to place SKUs in the most efficient locations. In this research, we describe a hierarchical top-down technique for merging separate decision-making processes related to allocation and assignment. In this example, we use the suggested method, and show how the Analytic Hierarchical Process (AHP) yields useful insights for solving the case study at hand. The Radio Shuttle, a rack system with the best evaluation and the shortest product retrieval time, was put forth as an alternative. The proposed solution was estimated to save 50 h of travel time and 48 h of lost work time.