The warehouse layout problem is one of the key issues in ware-
house management, which involves all stages of a supply chain. An
effective warehouse layout can distinctly reduce the operation costs.
The storage location assignment problem addressed in this paper
is to determine the locations for different items in a warehouse; thus
we consider warehouse layout and storage location assignment as
interchangeable in this research. Production planning is the process of
determining how to use and allocate the resources efficiently to
satisfy the customer demands. The capacitated lot-sizing problem is a
medium-term production planning, which decides how much to
produce for each product so that the total cost of production, setup,
and inventory is minimized. Usually, warehouse layout problems and
production planning are analyzed separately. However, while ware
house space is one of the key resources for production, enhancing the
utilization of the space can improve the production output and
increase the manufacturer’s profit.
Our research is motivated by a real-world production warehousing
problem. We perform the study at a food company that processes and
packages rice products. The company always faces the challenges of
finding available space for their products and managing the items in
the warehouse. The lack of coordination between production planning