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Feasibility Study & Simulation Validation​

October 25, 2023 1400 Views

Kaemingk Season Decorations is a significant distributor of decorative items for Christmas and Spring for over 75 years. The portfolio contains 17.000 products, and the products are sold to more than 30 countries.

 

Opportunities

The warehouse process of Kaemingk is characterized by two  seasonal peaks of which the Christmas peak is the highest. Over the years the inefficiency during the Christmas period has increased also because the picking process had to be split over 2 separate buildings, although the SKU needed to be combined on the same outbound pallet. Kaemingk wanted to investigate the possibility to combine the complete picking process in one new building. The plot and the footprint size of the building were given facts.

Solution

Groenewout teamed up in this project with their simulation partner Talumis. A few alternative logistics concepts were determined, analysed, calculated, presented and together with Kaemingk the preferred logistic concept was selected. The concept included two warehouse floors for picking on the first and second floor level. The second level is a constructing concrete floor at approximately 10 m. Because the concept is challenging Kaemingk wanted to validate the concept by running a simulation model. The model was built and validated based on actual data after which several scenarios were simulated by running the model. 

Benefits

  • A concept that allowed for combining the complete picking process in one building.
  • A validated expected saving in picking hours of approximately 15%.
  • Based on the simulation model a third flexible picking level was introduced extending the picking capacity to allow for even more extensive growth scenarios towards the future.
  • The capacity of the elevators, which per definition is a bottleneck in such a process was validated in the model with actual data of the supplier.
  • The simulation model was handed over to Kaemingk to be used in the operational process determining the SKU slotting per peak season.