Construction hardware store warehouse layout optimization using market basket analysis

Abstract

This study investigates the optimization of warehouse layout using market basket analysis, focusing on minimizing travel distance for enhanced operational efficiency. The arrangement of goods within a warehouse significantly influences travel distance and time, impacting overall productivity. Leveraging market basket analysis, purchasing patterns are examined to derive association rules between products. Both item-based and category-based analyses are conducted to evaluate effectiveness in warehouse layout optimization. Findings demonstrate the category-based approach consistently outperforms the item-based method, resulting in a notable reduction in travel distance compared to the original layout. Leveraging product correlations and reorganizing the warehouse layout based on category associations yields significant improvements in operational efficiency. This research contributes valuable insights into the effectiveness of market basket analysis for warehouse optimization. The superiority of the category-based approach underscores the importance of considering product categories in layout design. Practical implications for logistics and supply chain management are provided,offering a framework for enhancing warehouse operations and improving overall productivity.