An Application Of Simulation To Improve Warehouse Operation

Abstract

In the recent years, warehouses operate not only as centers for storage but also as centers for value-addition. Many types of research prove that understanding warehouse design and management principles can make a difference in improving the efficiency of operations. This study is motivated by the case of a furniture warehouse in Ho Chi Minh City, Vietnam, which is the main supplier of furniture home stores, Wanek’s distribution center. As the demand for furniture is going to increase, the company want to eliminate flaws in the warehouse current processes. Discrete- Event Simulation was applied to assist the company to avoid the risks arising and search for issues hidden in the warehouse system. The model was developed in ARENA Rockwell software using the company database. Factors impacting inbound process, outbound process and workforce utilization were identified and changed. The result is expected to demonstrate accurately the current system; different scenarios will be given to present idea’s benefit along with that of disadvantages. The solutions were proposed according to the overall goal and practical resources of the case-study warehouse Keywords: Warehouse, simulation model, ARENA, inbound process, outbound process.