Simulating the DLC Venlo

The Challenge

Object is the Distribution Logistics Center (DLC) in Venlo/NL, which was established in its first stage of extensions in 1999. The SDZ GmbH is accompanying the DLC planning processes since its early beginnings. In this step the extensions to operating phase 2 has been the issue. The main aspects of this project have been to:

• assure the function and performance of the new material flow systems
• examine changed customer order behavior
• examine future order and picking scenarios
• develop a powerful picking batch algorithm providing a maximum delivery reliability

The Solution

The basis is on a detailed Automod© simulation model including all material flow systems and control like sorters, high bay and miniload racking, picking and packing areas to allow accurate evaluation of key figures like:

• delivery reliability
• system utilization and throughputs

In order to provide realistic, but so far unknown future order loads, a powerful order pool generator has been developed to create various order scenarios, e.g.

• up-scaled order load scenarios based on prior order volumes of existing customers
• simulated order load scenarios based on parametric settings of order characteristics like quantity, priority, and due date distributions to emulate new customer behaviours

The Benefits

• >99.5% delivery reliability even in high load scenarios achieved by the developed batch algorithm*
• permanent controlling of key figures describing customer order behaviour like distributions of order priority/quantity, order positions, typical picking locations, special handlings
• faster and smoother start-up phase
• Strategic management tool to answer questions like:
  • "Can further countries/customers be covered without compromising existing ones?"
  • "How can tour departures be optimized to achieve further
    performance increases?"
    

*based on up-scaled order loads of existing customer

Text and Images kindly provided by SDZ GmbH