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CreateASoft, Inc.
The Process Improvement Company
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Logistics and Warehouse Simulation – Case Study
Hosni Adra
Product Manager/Partner
www.createasoft.com
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Simulation Contest
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“Best of the Best”
Simulation Contest Register at
www.simulationsoftware.com/contest
Winner will be announced at the IIE conference 2008.
All models will be posted online for live voting.
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Logistics simulation
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- Logistics simulation includes
-- Simulation between multiple locations with different distribution channels.
-- Simulation of material handling inside a distribution center.
- Both scenarios can be combined to create a large network of interactive environments.
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CreateASoft Expertise
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- Distribution channels
-- Large models have been built with maps, railroad locations, waterways,
-- Industries include nuclear, petroleum, and general merchandise
- Warehousing simulation
-- For both solid and liquid warehousing needs
-- Includes conveyors, pipes
-- Includes receiving, picking, and replenishment
- Combine models to create large distribution networks.
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Distribution warehouse
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- Considered one of the hubs in the distribution network.
- Includes both conveyors and material handlers.
- Requires 30% of unpacking and repacking before racking.
- Includes Receiving, replenishment, and order picking.
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Receiving
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- Receive between 1500 and 3000 crates/day split over a number of trucks.
- Trucks arrive between 8am and 3pm at pre-scheduled intervals (within 30 min of Schedule.
- 30% of received crates need to be manually sorted
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Order picking
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- Orders may be picked from 3 locations
-- Detailed tower – 3 levels of conveyors.
-- Bulk tower – 3 levels of conveyors.
-- Detailed picking from storage locations.
- Some orders may need to be picked up from a secured location.
- Most orders need to be manually checked for accuracy.
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Equipment
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- Forklifts –
-- Used to move crates to staging areas, replenishment, and re-crated items.
- Specialized Forklifts –
-- To rack crates. Slow moving and wire guided.
-- Unreliable and fail often.
- Manual “wheelies”,
-- Used to move products short distances.
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Constraints
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- Must run with actual data.
- Must have a model complete in 10 days.
- The model should be in 2D and 3D
- All 3 miles of conveyors must be implemented including
-- 16 shipping bays
-- 3 specialized bays
- Man power and equipment constraints implemented.
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Collecting data
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- Truck schedules and truck loads.
-- In excel format including bay information.
- Pick schedules
-- Including products, location, and final shipping bay.
- Replenishment requests throughout the day.
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Creating the model
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- Map the layout to the model.
-- To extract distances and properly position the locations.
- Define the key process positions for
-- Receiving
-- Picking
-- Unpacking/Repacking
- Movement definition.
- Conveyor build out and speeds.
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Validation (1)
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- With the basic model built, a number of validation runs were conducted to validate;
-- Proper movement of equipment, items, and resources.
-- Proper buffer sizes at the staging area.
-- Proper speeds.
-- Correct assignment of resources.
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Completing the model
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- Adding failure rates for the equipment.
- Connecting to actual data
-- Used the work order input to load the sequences directly into Simcad Pro.
-- Each work order is validated during the import phase.
- Build 3D
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Final validation
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- Flow is visually tracked through animation.
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Output data is validated to actual collected data from the warehouse.
-- The data for multiple days is used to validate the model and the model results.
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Model Analysis
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- Data generated by the model includes
-- Distance travel per item, resource, and forklift.
-- Time to rack
-- Time to replenish
-- Time to pick order
-- Time to load trucks
-- Resource utilization
-- Equipment utilization
-- Staging area size and wait time.
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Improvement direction
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- Eliminate multiple staging areas
- Relocate receiving and re-packing
- Improve replenishment runs
- Reduce delays in the checking area.
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The future state
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- Modify rack location to eliminate the slow moving forklifts
- Move the detailed re-packing area closer to their final storage locations
- Move receiving to the middle section of the warehouse.
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ROI
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- Reduce the time to receive and rack incoming inventory by 2 hours per day.
- Reduce the number of required man-power by 3
- Remove all 3 slow moving forklifts
- Remove 1 forklift truck
- Improved replenishment schedules to eliminate “wait” on the pick line.
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