Simulation model used as design improvement decision tool for warehouse material flow

Abstract

The basis for this thesis involved a six and a half month LFM internship at Efficient Storage, Shipping, and Selection. ES3, Efficient Storage, Shipping, and Selection, is a third party logistics firm that specializes in a vendor-neutral consolidation model for the food distribution industry. ES3 receives, stores, and ships multi-vendor products through a distribution center (DC) in York, Pennsylvania. The product is moved and stored by an Automated Storage and Retrieval System (ASRS) which consists of a network of conveyors, vertical lifts, and Selection and Retrieval Machines (SRMs). The ASRS system is not performing to the designed put-away and shipping rates, thus limiting the DC's overall performance during peak operations. The warehouse operations and warehouse design teams had numerous design suggestions for improving the ASRS operations, but it was difficult to predict the enhancement or impact on performance. A simulation model for the inbound system was created to analyze the impact, prioritize, and develop new ideas for improving the system.