A system dynamics model for warehouse performance measurement with highly seasonal demand and with long and short life products

Abstract

This paper presents a model that identifies those variables that significantly affect the general performance of a warehouse with picker-to-parts storage systems, considering the dynamic nature of its processes and the possible non-linear relationships between its variables, under the effect of products with seasonal demand and long and short life cycles at the same time. As a methodology, a simulation model was developed under the systems dynamics (SD) paradigm. The main conclusions are that with this type of model it is possible to explain the behavior of the very structure of the warehouse and explain some non-linear relationships between its variables, such as the percentage of receipt on pallets, the percentage of picking and the total operating cost. The total operating cost is significantly affected when the percentage of receipt in full pallets decreases or when the percentage of picking increases. In relation to the percentage of income from full pallets, the imbalance between the receiving capacity in full and non-full pallets, generating accumulation of product to receive and penalization in costs due to delays in unloading (stand by) as the strategy upon receipt, full pallets decrease its percentage. The same happens with the picking percentage, as it increases, the increase in the total operating cost increases exponentially, because the pallets to be sent to customers cannot be processed on time, because there is also an imbalance between the capacity to prepare full and non -complete pallet orders.