Applying mathematical model for pickers to orders problem at the warehouse of panda retail company

Abstract EN

The problem at Panda warehouse came from delaying many orders being ship to the stores.

The delay caused by a shortage in the required number of pickers to orders at times of high demand.

On the other hand, at times of low demand, some pickers are idle for long periods.

As a result, Panda Retail Company lose the customer’s loyalty, especially in the current competitive market, due to failing their needs at the right time besides excessive pickers’ costs due to their idle times.

In this paper, a Mixed Integer Linear Programming (MILP) model proposed to optimize the number of required pickers to orders.

The model applied with four scenarios of solution to cover the realistic constrains at Panda warehouse.

Results showed a maximum saving in the annual pickers’ costs by 27% in addition minimize the number of full-time pickers by 50% with such help from outsourced pickers.

The paper, also, pointed out recommendations to the company to sustain its competitive advantages in the retail market.