Abstract:

This paper describes a cost control model for picking in a warehouse. The first part of the model deals with the selection of the most appropriate picking methods and assignment of appropriate handling equipment. In this way several variants are created. Next, variants are evaluated by their costs and the one with lowest value is selected. In the second part of the model the selected variant is compared with the present method used. Because a change to the newly proposed picking method will definitely generate some costs, the return of investment is calculated. The third part of the model deals with the process of cost calculation. The model has two significant outputs. The first is determination (or recommendation) of the most appropriate picking methods for the given production and its material requirements. The second output is the process calculation of picking including the calculation of the costs for individual products.