An order picking operation improvement in a cross-docking distribution centre using simulation: a case study of a chilled distribution centre in Thailand

This article involves a study to improve the cross-docking operation at a chilled distribution centre, owned by a retail conglomerate in Thailand. Among activities of cross-docking, order picking is identified as a bottleneck. Therefore, exploring operational policies that improves the performance of order picking in terms of makespan and operating cost of is the objective of this study. To facilitate the exploration, a simulation model is developed. The model is experimented with various sets of operational policies. Each set represents a combination of options for resource management, (i.e., dedicating and sharing of picking operators) and order splitting, (i.e., split no batch, only the first batch, and the first and the last two batches of orders). Statistical analysis of the simulation indicates that implementing resource sharing with splitting the first and the last two batches minimises both the makespan and operating cost of the order picking activity.