In a dynamic environment, such as high-technology industry, a forward
picking area requires an intelligent approach to ongoing rewarehousing
(reassignment of stock items to locations). The items go through life
cycles and product mix changes. Some items are common across multiple
families in the product mix. Several of the items also tend to be pic
ked in conjunction with other items, so their locations in the picking
face should be made considering correlated assignments. This problem
is not limited to high-technology industries, but also occurs in any s
etting where there are seasonalities or promotional programs, such as
in retail distribution. This paper describes an approach, conceptual f
ramework, and heuristic Dynamic Stock Location Assignment Algorithm (S
LAA) for dynamic reconfiguration of the order picking system. Previous
relevant research is reviewed. This paper also provides a sensitivity
analysis of the algorithm and shows that it performs consistently bet
ter than the cube per order index rule at minimizing order processing
time in dynamic environments with changing popularity and correlation
of demand.