PLANT SIMULATION WAREHOUSING & LOGISTICS LIBRARY

CASE STUDIES
Auke Nieuwenhuis MSc
October 2012
Cases Studies

2
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

3
Build warehouse from scratch

1. Create layout
2. Define operation strategies
3. Import data
4. Define Supply Chain
5. Check model consistency
6. Run model

4
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

5
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

6
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

7
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

8
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

9
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

10
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

11
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

12
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

13
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

14
Auke Nieuwenhuis – Product
manager
Website: www.cardsplmsolutions.com
Email: auke@cards-group.com