Improving order‐picking performance through the implementation of class‐based storage

Class‐based storage (CBS) partitions stock‐keeping units (SKUs) into storage classes by demand and randomly assigns storage locations within each storage class area. This study compares the performance implications of CBS to both random and volume‐based storage (VBS) for a manual order picking warehouse. In addition, this study considers the effect of the number of storage classes, the partition of storage classes, and the storage implementation strategy applied in the warehouse. The simulation results show that CBS provides savings in picker travel over random storage and offers performance that approaches VBS. Other operational issues having an impact on warehouse performance are examined. The results offer managers insight for improving distribution center operations.