Logistics simulation is a vast domain whose typical applications include Warehousing & Distribution, Plant Logistics and Postal & Cargo.
Warehousing & Distribution
A warehouse simulation helps to design and validate:
Number of docks
Staging requirements at the docks
Number of aisles and bays (which translates into square foot requirements)
Material handling requirements (i.e. number of stackers, pallet trucks etc.)
Manpower
Operating strategies (storage and retrieval rules)
Yard congestion
Business rules for order picking can also be analyzed through a warehouse simulation.
Plant logistics
Plant logistics encompasses both yard traffic as well as in-plant material handling (docks to stores and stores to line). Its importance has increased significantly with the implementation of just-in-time deliveries.
A plant logistic simulation helps to design and validate:
Inbound & outbound gate requirements
Truck parking requirements
Sizing of stores area
Intermediate material staging locations to prevent stock-outs at the line
Material handing requirements (forklifts, tugger trains etc.)
Postal and cargo
Postal services and cargo / courier companies have several hubs through which mail (letters and parcels) is received and dispatched. These facilities handle vast quantities of mail and are highly automated with a large network of conveyors, mail processing equipment and scanners. Due to the high capital investment and the nature of the business (i.e. immediate, on-time delivery), simulation plays a valuable role in determining equipment utilization and the ability to sort and dispatch mail in a timely fashion.
Simulation plays a pivotal role in large postal services such as the United States Postal Service and Royal Mail (UK) when finalizing the layout & process flow at mail sorting facilities.
