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A contract distribution company was
operating a stockless depot on a double day shift for a multiple
retailer. Goods were collected from suppliers and brought to a depot,
where pallets were broken down and picked to store for subsequent
delivery. The retailer forecast significant growth in volume and the
distribution company wanted to establish whether the depot would cope.
Data was collected on the existing volumes, the projected increase, the
shift patterns, work rates and performance. Paragon was then used to
establish the fleet requirements for the new operation.
We then used Taylor II, a simulation package, to build a model of the
depot operations. The schedules produced by Paragon provided the
timetable for the arrival of collections at the depot. The model
simulated the flow of goods through off loading, breaking down,
producing pick notes and picking to store. As well as defined times for
tasks, each area had its own physical capacity constraints. As the
manpower available affects throughput capacity, the number of staff by
shift and the performance level by area were built into the model as
variables.
The simulation model was run several times to illustrate the
interrelationships between manpower and physical capacity to establish
overall depot capacity. The results were summarised into graphs that
illustrated manpower deployment across the working day. Key statistics,
such as the maximum goods in queue, maximum pallets on the bank, cases
handled per hour and the overall time taken to complete the work, were
compiled for each simulation. This allowed operational management to
make a judgement on the manning levels and shift patterns that would be
required for the new operation to cope within the existing depot.
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