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Storage Assignment Policy and Route Planning of AGVS in Warehouse Optimization

Warehousing plays an important role in logistics and supply chain. Its operating cost accounts for over 20% of the total cost of an organization, which leads to the need for warehouse optimization to reduce cost and increase profit. Automated guided vehicle systems (AGVS) have been used to transport materials, products, and goods in order to raise efficiency and throughput. Warehouse optimization includes minimizing vehicle's travel time, avoiding traffic congestions and deadlocks, solving storage assignment problem, etc. This paper discusses storage assignment strategies and route planning of AGVS in warehouse operation. We will derive the method to find the storage location and the optimal route for vehicles to travel in a traditional rectangular 2-block layout warehouse. Simulated results show the implementations of the algorithm.