Simulation Modeling Approach For Worker Assignment Problem In Cross-Docking Warehouse: A Case Study Of Cj Gemandept Logistics

Abstract

Cross-docking is one of the best warehousing strategies, but it also faces some challenges in the supply chain. An ever-increasing and varied volume of goods and a multitude of suppliers must be intelligently managed and coordinated in cross-docking centers to meet customer demand. This thesis studied workforce utilization at a cross docking distribution center of fast-moving consumer goods in Vietnam. The facility is known as a combination system of post-distribution cross-docking (in which bulk is broken and goods are sorted by destination at cross-dock) and pre-distribution cross docking (in which goods are sorted by destination at the supplier’s facility before being delivered to cross-dock). The aim of the thesis was to search for the optimal assignment of workers assigned to inbound operations such as receiving goods, checking, sorting, and temporarily storing in the warehouse. Simulation-based optimization approach was applied to minimize the total number of workers to accomplish all activities with time and workforce constraints. A simulation model was built in Arena software and the optimum solution was found by the OptQuest tool for Arena. The results showed that the optimal worker assignment indicated changes in staff allocation of each operation and the total number of warehouse workers gradually decreased. Thus, the cross-dock may reduce labor costs as well as keep the processing time of all actions at an acceptable level. However, this thesis had some limitations such as not covering all uncertain factors and all types of workers, as well as the limitation of simulation software.