| Summary: | Considering necessary fundamental and structural changes in the production and manufacturing industries to fulfill the industry 4.0 paradigm, the proposal of new ideas and frameworks for operations management of production and manufacturing system is inevitable. This research focuses on traditional methods proposed for storage assignment problem and struggles for new methods and definitions for industry 4.0 based storage assignment concepts. At the first step, the paper proposes a new definition of storage assignment and layout problem for fulfilling storage mechanism agility in terms of automated store and retrieval process (AS/RS) in modern inventories. Then considering the shortcomings of traditional algorithms for storage assignment problem, the paper contributes a new algorithm called SAO/FEM (storage assignment optimization technique), inspired from mechanical engineering discipline for analysis and optimization of storage assignment problem. The proposed new algorithm about stress distribution analogy, and the help of the Finite Element Method and minimum total potential energy theory, proposes a new model for storage assignment optimization. The efficiency of the proposed algorithm in terms of calculation time and the best answer investigated through numerical examples. The article has developed an application for SAO/FEM algorithm as a value creation module and applied new optimized storage positioning in the warehouses.
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