Application of arena simulation to improve warehouse operation: A case study of Unilever

Abstract

In recent years, warehouses have become an irreplaceable part of the supply chain. Numerous studies have shown that optimizing operations depends on having a solid understanding of warehouse management and design principles. The inspiration for this study came from a Back-of-factory facility in the Cu Chi district of Ho Chi Minh City, Vietnam, which functions as Unilever's manufacturing, warehousing, and main supplier of fast-moving consumer goods. Long truck cycle times, which represent the amount of time each truck must spend in the system during the process of fulfilling an order, are currently causing problems for the real-world system. Using the ARENA Rockwell program, a discrete event-based simulation model has been created to analyze this issue and discover the required solution. Then, in order to simulate how the real system operates, the data gathered from the real system will be fed into the model. It is anticipated that the result will accurately reflect the system as it is now. After carefully examining the output, some possible modifications will be suggested in order to address the aforementioned issues. The options were laid out in line with the goals and resources of the case-study facility