PLANT SIMULATION WAREHOUSING & LOGISTICS LIBRARYCASE STUDIESAuke Nieuwenhuis MScOctober 2012

Cases Studies

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Overview

• Build Warehouse simulation from scratch• Case A, Greenfield• Case B, Existing cross dock• Case C, Refurbishing• Case D, Expand operations• Case E, Future growth

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Build warehouse from scratch

1.Create layout2.Define operation strategies3.Import data4.Define Supply Chain5.Check model consistency6.Run model

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Case A: Greenfield

•Validate under different scenarios:•Number of equipments/resources needed for optimal

operation• Impact on equipment/throughput of:

•Telescopic conveyors•Fly Staging•Fork 4•Slip Sheets

•Analysis of warehouse behavior over time•Define constraints on different demand levels•2 vs. 3 shift operation•Warehouse SKU arrangement effect on

throughput/resources •Fenced area utilization

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Case A: Results

• Results:• By adjusting resources we can save EUR300K

on investment (11% of yearly warehouse cost)• Thereafter EUR69K on annual basis• Storage by rotation can save 13% FLT, and

the number grows with warehouse size• With telescopic forks you can save 15%

resources on loading/unloading dead pile trucks

• Docks will not become a mayor constraint• Warehouse traffic is concentrated at the front

of the warehouse

• Efforts (consultancy):• 10 days for the entire project• Simulations done by client• Conxlusion and reccomendations are

done together with client

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Case B: Existing cross dock

•Validate under different scenarios:•Number of equipments/resources needed for

optimal operation•Type of equipment (single pallet vs double pallet)•Different layout configurations for same operation

•Analysis of warehouse behavior over time•Define constraints on regular / busy day•Define best out of three layout scenarios•Measure effect of traffic jam•Utilization per activity type

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Case B: Results

• Results:• Rejected original flow

through warehouse, define new flow.

• Reduce traffic jams with 60%

• Validate design with operation for busy day

• Best fit for layout vs resources vs traffic jam

• Validate storage locations with input / output

• Efforts (consultancy):• 15 days for the entire

project

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Case C: Refurbishing

•Validate under different scenarios:•Number and type of equipments/resources

needed for optimal operation•Different Storage strategies•Different pick routing strategies

•Analysis of warehouse behavior over time•Define constraints on regular / busy day•What resource does which activity•Work in teams•Utilization per resource type•Minimize distance travelled in case pick area

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Case C: Results

• Results:• Save EUR 260K in equipment

investment due to agile operations

• Save EUR 60K annually due to agile operation

• Avoid investing in manual equipment

• Assign jobs agile• System can easily handle peak

operations• Efforts (consultancy):

• 26 days for the entire project

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Case D: Expand operation

•Validate under different scenarios:•Number of equipments/resources needed for optimal

operation•Type of equipment (single pallet vs. double pallet)•Different customer service windows to balance workload over

24 hour period•High detailed workflow including customizations and empty

pallet flow•Analysis of warehouse behavior over time

•Define constraints on regular / busy day•Define best truck loading technology with respect to staging

capacity and rework area•Measure effect of traffic jam•Measure effect of climate control doors

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Case D: Results

• Results:•Modify original design with

operation for busy day, avoid big peak in staging

•Use right outbound flow to increase speed of truck waiting at dock and minimum time for pallet on staging

•Use cheaper solution in infeed and outfeed

•Reject the idea of handover areas

• Efforts (consultancy):•26 days for the entire project

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Case E: Future growth

•Validate under different scenarios:•Number of equipments/resources needed for optimal

operation next year, in three years and in eight years•Phase out old warehouse and implement new warehouse

in different phases (one, three and eight years)• Increasing and changing demand in one year, three years

and eight years•Analysis of warehouse behavior over time

•Define agile storage strategy•Choose from layout options•Design and validate monorail system from local

production to the warehouse•Refine the resource and equipment selection

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Case E: Results

• Results:• Improved storage strategy for

better utilization• Define # resources in one year,

three years and 8 years• Choose from various layout

options• Reject handover area• Implement cross dock area• Split inbound and outbound by

separate resources• Efforts (consultancy):

• 26 days for the entire project

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Auke Nieuwenhuis – Product managerWebsite: www.cardsplmsolutions.comEmail: auke@cards-group.com