Evaluating the benefits of picking and packing planning integration in e-commerce warehouses

Abstract

Motivated by recent claims on the potential value of integration in warehouse management, this study evaluates the benefits arising from integrating the planning of order picking and packing processes in e-commerce warehouses. A set of research questions are proposed for exploring various benefits under different operational conditions and an experimental study is designed to answer them. In order to have a concrete model to represent the integrated planning method, a mixed-integer nonlinear programming model is developed, and then compared against a non-integrated variation. The experimental study makes the comparisons by analysing the collected empirical data from a real-life warehouse. Our findings indicate that integrated picking and packing planning can yield improved performance in different aspects under different configurations of objectives, order quantities, order categories or workforce allocation.