WAREHOUSE SPACE OPTIMIZATION USING LINEAR PROGRAMMING MODEL AND GOAL PROGRAMMING MODEL

Abstract

Warehousing involves all the material handling activities that take place within a warehouse in a supply chain. Typical warehouse operations involve integrated assignment decisions that could be optimized. The review in this paper presents a comparative analysis of optimization models used for warehouse space allocation proposed in the recent literature. Through the review, it was identified that considerable challenges exist in applying these models at present, due to the vast amount of information required to be processed, the significant number of possible alternatives, and the degree of integration of decisions required in the modern warehousing context. The objectives of this paper are comparison of previous research related to the warehouse space optimization and demonstrate warehouse space optimization using linear programming (LP) and goal programming (GP). Therefore, it is expected that the paper serves as a reference for further research in the area. The paper proposes a simple and effective linear programming (LP) model and goal programming (GP) model to optimize 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. The models generated feasible solutions; all constraints are satisfied.