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Correlated Assignment Strategy in Miniload AS/RS

The problem of clustering stock-keeping-units to assign storage locations is treated. Firstly, a construction heuristic algorithm is developed to cluster items considering demand dependencies(correlated assignment) for the case that the maximum number or the maximum volume(weight) of items per tray is constrained by the capacity of tray. Secondly, inventory-related cost as well as material handling cost is considered to determine the space requirement and the storage location of each item simultaneously.