Development of a decision support system using Tabu Search algorithm for the warehouse layout problem

Abstract

The warehouse layout problem involves allocation of different product types to certain areas of a warehouse so that the cost of material handling from docks of the warehouse can be minimized. In this study, a Tabu Search algorithm as a satisfying solution for the quadratic assignment problem is applied for modeling. The layout problem is linked to Visual Basic® programming in Excel®. A spreadsheet-based decision support system is developed in which the user specifies the area of the warehouse by height and number of bays, places the docks around the warehouse and gives the frequency of their usage, and provides the demand and area required per product type. Then, the problem is solved to find the proper location of each product type for minimal material handling cost. The proposed system will provide decision-makers and engineers with a suitable answer in negligible time.