Calculate best product mix - optimize order picking yield

DKcrm

New Member
Joined
Mar 2, 2006
Messages
40
Hi,

It's been some time since my last post on this board, but now I have new challenge. In short:
Is there a way in Excel to calculate the optimal product mix, so that as many orders as possible are fulfilled and at the same time, as many picking orders as possible goes above a certain picking minimum?

Background
I work in a logistics company, and have been assigned with the task of seeking to minimize the number shipments for the customers, thereby increasing the number of units going out in each shipment leading to minimizing the number of shipments to be handled under a certain minimum.
We are working in the apparel industry, where a large number of units on a fair number of product codes are to be processed within very short windows. Previously there has been a tendency to just ship to the customers when a certain number of product codes had been received into the warehouse, but now we want to consolidate more prior to shipping, and thereby minimize the number of picking/shipping batches within the shipping window, and at the same time try to mix the product codes so that we avoid as many minimums as possible and fulfill as many orders as possible.

Now, I have access to almost any data related to the products and sales orders, and I have prepared two data sets already in hope to be able to calculate the best mix of product codes.

There are some limitations and definitions.
* The minimim per picking order is 7 units. Picking Orders below 7 units will still be processed, but charged with a minimum handling fee.
* The maximum capacity in the picking area is 7.000 units. So the products to be handled in one batch should not exceed this figure
* Each product code will only be handled once. Once the product is processed, all sales orders should have been packed and shipped
* The 'Sales Order' table shows sales order details - Order ID is actually customer ID, and all shipments for the same customer ID are automatically consolidated in the picking job once products are put in the same batch
* The 'Stock data' table holds units in stock - nothing more will come. This volume is to be included in capacity calculations

Is it possible to calculate the optimal product mix based on the sales orders per product code?
VBA solutions are acceptable.
If this is not possible in Excel, is Access an option and if so, how?

Below tables are only to show the structure of the tables, and are not complete in this example.


Table one: Sales data
Product code, sales order, units

Book1
LMN
1Product CodeOrder IDUnits sold
2T28584179CA - 53600/10016
3T28584179CA - 53600/10024
4T28584179D - 32030/10015
5T28584179TS - 07700/100124
6T28584179TS - 09000/10028
7T28584179TS - 09000/10037
8T28584179TS - 09000/10047
9T28584179TS - 09000/10057
10T28584179TS - 09000/10077
11T28584179TS - 09000/10087
12T28584179TS - 09000/10107
13T28584179TS - 09000/10117
14T28584180D - 31000/10018
15T28584180D - 32470/100124
16T28584180D - 32490/10018
17T28584180DA - 30110/32705
18T28584180SF - 63020/100156
19T28584180TS - 09000/10027
20T28584180TS - 09000/10037
21T28584181D - 32440/10014
22T28584181D - 32470/100112
23T28584181TS - 09000/10026
24T28584181TS - 09000/10036
25T28584181TS - 09000/10046
26T28584181TS - 09000/10056
27T28584181TS - 09000/10076
28T28584181TS - 09000/10086
29T28584181TS - 09000/10106
30T28584181TS - 09000/10116
31T28584182CA - 53600/10018
32T28584182CA - 53600/10027
33T28584182D - 32030/10015
34T28584182TS - 07700/100124
35T28584182TS - 09000/10028
36T28584182TS - 09000/10037
37T28584182TS - 09000/10047
38T28584182TS - 09000/10057
39T28584182TS - 09000/10077
40T28584182TS - 09000/10087
41T28584182TS - 09000/10107
Report 1


Table two: Stock data

Book1
FG
1Product CodeStock units
2T28584179171
3T28584180175
4T2858418197
5T28584182151
6T28584183165
7T28584184517
8T2858418524
9T28584186312
Report 2
 
Last edited:

Excel Facts

Show numbers in thousands?
Use a custom number format of #,##0,K. Each comma after the final 0 will divide the displayed number by another thousand

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