E-commerce is rapidly growing and is
expected to encompass a quarter of all global sales by 2025. This growth
pressures e-commerce warehouses to enhance efficiency. A promising innovation
is the Robotic Mobile Fulfilment System (RMFS), which optimises warehouse
operations by using robots to manage storage and retrieval tasks, thus
significantly improving productivity, speed and accuracy. This research focuses
on how inventory allocation (slotting) decisions with RMFS can optimise
operational performance. In particular, how the slotting decision of Stock
Keeping Unit (SKU) distribution across movable storage racks (pods) based on
SKU turnover can maximise order throughput rates and optimise operational
performance. The research question guiding this study is: What is the optimal
demand-based slotting decision to maximise the order throughput rate in a
Robotic Mobile Fulfilment System? This question aims to provide insights into
how different slotting configurations impact the efficiency and performance of
ecommerce warehouses. The research approach is twofold. A general analysis is
conducted to understand the impact of turnover-based slotting decisions using
synthesised demand profiles derived from literature. This is followed by a
detailed case study for Gall&Gall using demand profiles derived from
real-world data to find specific optimal slotting configurations and validate
the synthesised demand results. The methodology involves three main steps:
determining demand configurations, generating slotting configurations with a
mathematical model, and simulating these configurations to evaluate
performance. Each demand configuration results in multiple slotting
configurations, which are evaluated with the simulation to gain insights into
the effect of slotting decisions on performance. The different demand profiles
consist of total SKU quantity, total item quantity, and SKU classification into
three classes (A, B and C) based on their item turnover. The different slotting
configurations consist of different distributions of the three classes over the
pods. These slotting configurations are obtained with a mathematical model that
prioritises class distribution based on given weights. The simulation tool
RawSim-O assesses the slotting configurations on key performance indicators
such as total order throughput rate and the number of items picked from a pod
in one go (pile-on). Key findings provide that pile-on and travel distance
significantly affect the order throughput rate, with performance variations of
up to 40 orders handled in 30 minutes. High performance often arises with
configurations aiming for an equal number of items per pod across classes and
maximising the number of pods for SKUs in class A. While synthetic demand
profiles show high performance with class A distributed over the maximum number
of pods or equal items per pod for all classes, the Gall&Gall demand
profiles perform better with class B distributed over slightly more pods,
indicating variability in optimal slotting approaches based on specific demand
characteristics. Overall, turnover-based slotting decisions significantly
impact order throughput rates in RMFS, and tailoring slotting configurations to
specific demand characteristics is crucial for optimal operational efficiency. In
addition to general slotting insights, this research developed a method that
allows warehouses to input their specific demand characteristics and receive
insights on optimal slotting approaches. Furthermore, the method enables the
readjustment of warehouse-specific details, such as a warehouse’s unique
layout, for extra applicability and realism, and allows the integration of
additional decision problems, such as order batching and routing, to broaden
the method’s scope. This supports warehouses with the design of a tailored,
robust and effective slotting strategy for operational performance improvement