An Arena Simulation Application: Optimize Labor Assignment In Saigon Co.Op Cross-Docking Warehouse

Abstract

This thesis aims to enhance the operational performance of the SGC cross docking warehouse through simulation and sensitivity testing of various events. With the management's new improvement targets for fiscal year 2024, the logistics department of SGC recognizes the need to assess warehouse operations and devise effective strategies for resource allocation and optimization. To achieve this, the Arena Rockwell Simulation software is utilized to simulate and optimize the SGC cross-docking warehouse operations. Real data obtained from on site visits to the warehouse and interviews with executives contribute to the study's robustness and validity. Furthermore, Optquest, an optimization tool within Arena, is employed to determine the optimal allocation of resources. The results reveal a significant cost saving of 5.8% in labor expenses while maintaining a warehouse performance above 95%. Additionally, in cases involving special circumstances such as promotions or holidays, the warehouse may consider renting an overflow facility.