Restructuring of Logistics Processes : Case Study of Order Picking at Terminal C 2 of Grupo Luís Simões

Order picking is a labour-intensive operation and so it represents significant costs, with any underperformance leading to high operational cost for the whole supply chain. Hence, the objective of the present work is to assess and restructure the storage assignment in the picking area and the order picking process (namely the routing method) in order to enhance the order picking process of Luis Simões’s Carregado 2 Logistic Operations Centre (C2). After a literature review on the optimization of low level, manual-pick order-picking, a simulation model was developed to assess the performance of the order picking in C2, taking in account multiple scenarios varying in storage assignment policy and routing method. Fulfilling its objectives, this dissertation allowed for important conclusions to be drawn for C2 and also for picking optimization in general.