8.7 ORDER PICKING OPERATIONS
A recent survey of warehousing professionals identified highest order picking as the priority activity in the warehouse for productivity improvements There are several reasons for their concern. First, order picking is the most costly activity in a typical warehouse(see Figure 8-31). A recent study in the United Kingdom revealed that 63 percent of all operating costs in a typ- ical warehouse can be attributed to order picking.
Second, the order picking activity has become increasingly difficult to manag. The difficulty arises from the introduction of new operating pro grams such as just-in-time(JTT), cycle time reduction quick response, and new marketing strategies such as strategies. These programs require that(1) smaller orders be delivered to warehouse tomers frequently and more accurately, and that(2) more SKUs must incorporated in the order picking system. As a result, both throughput, storage, and accuracy requirements have increased dramatically. Thi 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, and further improving picking accuracy. Finally, the conventional responses to these increased requirements, to hire more people or to invest in more auto- mated equipment, have been stymied by labor shortages and high hurdle rates due to uncertain business environments. Fortunately, there are a variety of