AI-Driven Digital Twin Framework for Warehouse Logistics Automation Optimization

Md Mahinur Alam, Kanita Jerin Tanha, Md Tanjin Alam, Shadman Sakib, Min Gyu Kim

In recent years, warehouse logistics optimization has increasingly focused on intelligent, data-driven systems to enhance operational efficiency. Conventional static product placement strategies are being progressively replaced by dynamic slotting approaches that can adapt to real-time variations in warehouse conditions. In this work, we present a novel framework that employs a reinforcement learning agent integrated within a FlexSim-based Digital Twin environment for real-time product placement optimization. The proposed agent continuously learns from streaming operational data, enabling it to reduce picking time while improving overall system throughput. The simulation environment models a four-zone warehouse layout with forklift-based material handling and leverages the Asset Administration Shell framework to ensure seamless interaction between the learning agent, physical asset, and the digital twin. Experimental evaluation demonstrates substantial performance gains, with the proposed approach achieving a 29.66\% reduction in average picking time, a 35.42\% increase in throughput, and an 18.54\% decrease in travel distance.