Product Layout Optimization and Simulation Model in a Multi-level Distribution Center

We consider the product allocation problem in logistics engineering, which allows incorporating various aspects in horizontal and vertical direction. These aspects include carrying time, the turnover rates of products, relevance of product demand, elevator waiting time, vertical transportation time, etc. we develop a 0-1 programming model with two objectives-minimization of total transportation time and maximization of relevance of product demand. In order to obtain average waiting time of every level, we establish an elevator simulation model considering the limitation of elevator capacity. The proposed optimization model can be solved using Genetic algorithm heuristically. A numerical example shows its effectiveness.