djumes

I'm considering adding process simulation to analyze and optimize a DC I work in. Can someone explain to me how process simulation can help me to optimize my DC is a way that spreadsheets and other traditional tools can't?

Brent

Spreadsheets can't take variance into account, and the unexpected affects that it can have. A simulation can predict bottlenecks that will occur due to variance around the mean, tell you how often they will occur, and allow you to develop best practices to mitigate those bottlenecks.

Spreadsheets also cannot predict how changes in one area of the DC can affect other areas of the DC. For example, it's not uncommon for people to find via simulation that an attempt to mitigate a bottleneck in one area of the DC does nothing more than to move the bottleneck to another area of the DC, and can create other unseen issues when implemented.

You can take a look at this white paper in which a nationwide office supply company used Simcad to reduce put-away times by 50%, and reduce labor cost by 30%, thereby increasing capacity and throughput as well: Distribution Center Simulation with Simcad Pro

Edited by moderator Monday, June 15, 2015 2:07:47 PM(UTC)  | Reason: Not specified