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: