Predictive analysis based approach for optimal warehouse product positioning

Building a successful warehouse management system encompasses solving many problems of different nature to reshape the general workflow and ensure improvements in terms of resource management. In order for such a system to be accepted and used by a logistics company, those solutions need to be presented through a simple, adaptable and most importantly, a feasible software solution. One of the aspects that needs to be covered while building a warehouse management system is the optimal product placement in the warehouse. If the products are strategically placed, all the other improvement strategies like stock to picking zone item transfer and item picking order become more efficient and easier to implement. In this paper, tactics and issues regarding the optimal product placement in a warehouse are analyzed in detail through a real-world case study. Solutions of this problem largely differ for new, empty warehouses and for already operative warehouses not able to carry out a stocktaking process. Approaches for both possible situations are proposed and tested out on two different warehouses in a medium-to-large logistics company.