A non-linear model for the classification of stored items in supply chain management

Abstract

With the significant role that warehouse plays in connection to suppliers, distributors, and clients, and considering the costliness of storage systems, efforts have focused on the reduction of procedural expenses. Among the most significant expenses, one involves the distance traveled by operators or S/R machinery for the selection of ordered items; the common solution to which has been through the classification of stored items. Previous articles have focused on linear solutions to the abovementioned problem, such as P-Median. This article shall focus on the problems arising from the said solution, and instead a non-linear method proposed. Further, a heuristic algorithm is produced for the solution that will be compared to similar solutions through Lingo, proving acceptable results.