TRENDS

Order picking is becoming a more significant operation. This arises from the increased emphasis on new operating concepts such as just-in-time (JIT), cycle time reduction, quick response, and new marketing strategies such as micro marketing and megabrand strategies. These strategies require that:

• Smaller orders be delivered to warehouse customers more frequently and more accurately
• More stock keeping units (SKUs) be available for the customers.

The overall result is increase in throughput, storage, and accuracy requirements.

A renewed emphasis on quality improvements and customer service have forced warehouse managers to reexamine the order picking activity from the standpoint of

• minimizing product damage
• reducing transaction times
• improving picking accuracy

Finally, the conventional responses to these increased requirements, to hire more people or to invest in more automated equipment have been stymied by labor shortages and high investment hurdle rates due to uncertain business environments. Fortunately, there are a variety of ways to improve order picking productivity without increasing staffing or making significant investments in highly automated equipment (Frazelle, 1988).