| Indices | |
| i , j | index of items, i, j = 1, ..., N |
| o | index of orders, o = 1, ..., O |
| m | index of pods, m = 1, ..., M |
| Parameters | |
| N | total number of items |
| O | total number of orders |
| M | total number of pods |
| Q | number of inventory bins in one pod; Q=8 in this article |
| Bi | number of inventory bins for the item i needed to be assigned |
| Sij | similarity value between the item i and j, it is equal to the support count between item i and j |
| S | item similarity matrix |
| Decision variables | |
| xim | xim = 1 if the item i is put on the pod m; |
| xim = 0 , otherwise | |
| yim | number of inventory bins that item i occupies on the pod m |