Optimizing warehouse layout

In the competitive environment, warehouse design and optimization is very important for firm's profitability. In this study, a combined approach has been suggested for a chemical material warehouse. The warehouse has been analyzed and optimized by using AHP, multi-criteria ABC analysis and mathematical optimization techniques consecutively. AHP method and multi-criteria ABC analysis have been used to determine the most moving materials in the warehouse. An integer programming model has been developed and solved optimally by using an optimization solver for the minimization of the total handling.