Warehouse Space Optimization Using a Linear Programming Model

Abstract

Warehouse operations play a key role in manufacturing organizations, providing support to run production processes smoothly. As a part of warehouse operations in a supply chain, loading problems are a point that allows optimization to be carried out with significant cost implications and a considerable impact on the rest of the supply chain in manufacturing organizations. The paper proposes a simple and effective linear programming model to optimally use warehouse storage space by efficient palletizing. The quantity of total pallets required per day is derived based on the available demand per day and other constraints related to warehousing operations in a multi-product manufacturing context. Requiring moderate computational efforts and time, generates optimal solutions of almost all examples analyzed, using the Microsoft Excel add-in, Solver and the Solver Engine - Simplex Linear Programming, which were used to implement the model. For scenarios considered, and a sample scenario demonstrated in the paper, the model generated feasible solutions, all constraints are satisfied.