PLANT SIMULATION WAREHOUSING & LOGISTICS LIBRARY
CASE STUDIES
Auke Nieuwenhuis MSc
October 2012
Cases Studies
2
Overview
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Build Warehouse simulation from scratch
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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 layout
2. Define operation strategies
3. Import data
4. Define Supply Chain
5. Check model consistency
6. Run model
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Case A: Greenfield
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Validate under different scenarios:
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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
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Define constraints on different demand levels
2 vs. 3 shift operation
Warehouse SKU arrangement effect on
throughput/resources
Fenced area utilization
Case A: Results
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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%
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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):
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6
10 days for the entire project
Simulations done by client
Conxlusion and reccomendations are
done together with client
Case B: Existing cross dock
• Validate under different scenarios:
• Number of equipments/resources needed for optimal
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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
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Results:
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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):
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8
15 days for the entire
project
Case C: Refurbishing
• Validate under different scenarios:
• Number and type of equipments/resources needed
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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
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Results:
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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):
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10
26 days for the entire project
Case D: Expand operation
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Validate under different scenarios:
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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
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11
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
Case D: Results
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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
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Validate under different scenarios:
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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
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13
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
Case E: Results
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Results:
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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):
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14
26 days for the entire project
Auke Nieuwenhuis – Product
manager
Website:
Email:
www.cardsplmsolutions.com
auke@cards-group.com