Logistics and Warehouse Simulation – Case Study


Hosni Adra
Process Improvement Manager/Partner
www.createasoft.com

Logistics and Warehouse Simulation – Case Study


Hosni Adra
Product Manager/Partner
www.createasoft.com

• 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.

• 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.

• 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.

• 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

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 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

• Flow is visually tracked through animation.
• 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.
  

• 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.
  

• Eliminate multiple staging areas
• Relocate receiving and re-packing
• Improve replenishment runs
• Reduce delays in the checking area.

• 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.

• 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.

• Q&A

Contact Information
Email: HADRA@CREATEASOFT.COM
Phone: (630) 428-2850 x205
WWW.CREATEASOFT.COM