The decision on warehouse design and material-handling equipment to be installed is strategic in nature. If an organization is committing resources to build a warehouse of a specific design with automated material-handling facility, it is necessary to define the most suitable design configuration. With the warehouse simulation model, the different scenarios can be tested to define the most suitable configuration. The interactions of different material-handling systems and subsystems can be visually seen, using computer graphics to provide a continuous moving representation of the material flow. Simulation models will help in finding out the reasons for bottlenecks and material hold-ups in the system. The use of simulation technology is justified in view of the substantial investment involved in warehouse automation.
A simulation software can show the following in real-time 3D, wherein the parameters can be changed to re-run the simulation to get the warehouse performance in changed operating conditions.
[1] Warehouse building space requirement
- Material handling equipment requirements
- Storage arrangement (floor layout, racks size, and locations)
- Space utilization
- Equipment and people utilization
- Material flow routes
- Material throughput performance statistics
Each simulation (with new inputs) produces a detailed report of the warehouse performances that may be achieved. This helps to take proper investment decision with regards to warehouse size, equipment, and storage space design.
Source: Sople V.V (2013), Logistics Management, Pearson Education India; Third edition.
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