Inventory Allocation Optimization Starter Kit

In this article, we describe an inventory allocation optimization solution developed by Grid Dynamics in collaboration with Dataiku. The starter kit provides advanced features such as capacity constraints and order splits minimization out of the box, and can be extended in a number of ways.

There are two components of the order picking process that need to be optimized in order to improve efficiency: order picking time and order sorting time. In this article we will describe the business case of how we managed to reduce average order picking time (OPT) in a warehouse by 23%.

Traditionally, OMSs recommend optimal routes for each order independently, often with suboptimal results. In this article we present an alternative approach that resulted in 50% less order splits, double-digit EBIT improvement, and multi-million annual savings for one of the largest department store chains in the US.