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Logistics and Warehouse Simulation & Case Study
CreateASoft, Inc.
The Process Improvement Company
CreateASoft, Inc.
The Process Improvement Company

Logistics simulation
  • 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.
 
CreateASoft Expertise
  • 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.
 
Distribution warehouse
  • 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.
 
Receiving
  • 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
 
Order picking
  • 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.

Equipment
  • 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.

   
Constraints
  • 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.
 
Collecting data
  • 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.
 
 
Creating the model
  • 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.
Validation (1)
  • 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.

Completing the model
  • 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
 
Final validation
  • 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.
 
Model Analysis
  • 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.
 
 
Packing/Repacking area
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Improvement direction
  • Eliminate multiple staging areas
  • Relocate receiving and re-packing
  • Improve replenishment runs
  • Reduce delays in the checking area.
 
The future state
  • 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.
 
New racking system
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New Receiving Area
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Future State Summary
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ROI
  • 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.


 
CreateASoft, Inc.
The Process Improvement Company
Logistics and Warehouse Simulation – Case Study

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


 
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