Using Heuristics to Enhance Real-Life Warehouse Replenishment Processes in the Fashion Industry

The fashion industry is currently facing a phenomenon known as fast fashion. It is due to the high variation in product types and consumer tastes. The uncertainty generated by this phenomenon is forcing logistics warehouses in the sector to rely on innovative tools based on new technologies. These must guarantee that order preparation is performed efficiently through the autonomous and optimal management of the location of the products in the warehouses. Instead of building new areas to accommodate incoming products, companies are looking to optimize the reallocation of the existing lots. The aim is to generate savings in terms of costs and movements within the warehouse. Based on the assumption that picking at height is more costly for the warehouse when picking an order, this paper proposes a storage location assignment system based on data analysis and fast heuristics to assist in making decisions about the relocation of existing stock-keeping units, either on the floor or on shelves. This model is tested in a warehouse of a fashion company to demonstrate how the use of optimization tools can help generate operational and economic savings.