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Abstract
This paper presents a simulation study of a high volume distribution center. The model is developed for the picking and packing operations of distribution. The flow starts with receiving orders and continues to the picking areas, where the items of the order are picked from one of three multi-level, multi-stage storage areas. All storage areas are connected by high-speed conveyors and the order follows the conveyors through all storage areas. Each stage in each storage area has dedicated item pickers, and one of the goals was to investigate their assignments and schedules. The features of Simio are used to develop and implement the high fidelity animated model. The distribution center performance is measured in cycle time of orders, throughput and picker utilizations. Few scenarios are investigated and the corresponding recommendations are given.
Keywords
Discrete event simulation, Wave generation, Distribution Centers (DC), Order picking, Picking zones
1.Introduction and Literature Review
Value added activities are those that transform the item toward completion, and that the customer is willing to pay for the activity to be done [1]. For that reason it can be argued that distribution centers (DC in the rest of the paper) are a non-value added step in a supply chain as they store inventory but do not transform the products in any way for its completion. It is very important for companies to minimize distribution costs in order to stay competitive. This involves optimizing distribution center operations to reduce lead time, holding inventory cost, and labor cost among others. The main operations in distribution centers are receiving, storing, replenishing, picking, packing, and shipping. By developing mathematical and computer models to fine-tune the layout and operations of a warehouse, managers can significantly reduce labor costs associated with product distribution, increase warehouse space utilization, and improve the overall flow of project [2].
Computer simulation can be a great tool to utilize in the design of a DC as it enables companies to perform powerful what-if analyses leading them to better planning decisions [3]. In the DC design stage, companies can investigate and compare different operational scenarios to determine the one that best fits their (or their clients) needs. On top of that, if the DC has already been built and is operating, simulation software...