Warehouse in Today Business and Benefits of Simulation in Warehousing

Warehousing is an indispensable part for most of business organizations, although its existence seems to be threaten by many modern business concepts. Instead of regarding warehousing as a redundant operation that cannot be eliminated, more effort should be put in adapting the warehouse-function to fit into organization’s need, as well as improving its performance. The objectives of the thesis are (a) to provide essential knowledge and useful remarks related to today’s warehousing; and (b) to attest the significance of how simulation technology can be used to support improving the warehouse’s performance. The study of warehouse’s topics was carried using desk research method. Information was collected from different authentic sources, subsequently, be evaluated and further explored. In term of simulation, a model used in support designing the optimal warehouse for an imaginary case would be constructed step-by-step. A computer-based software called Enterprise Dynamic 9 was employed as platform to build the simulation model. As a result, the benefits, reliability and suitability of replicated model are clearly demonstrated. The generated reports from simulation runs provided appreciably useful information for the task of identifying problems associated with each activity within the warehouse. Naturally, the model can continue to be used as verifying tool along the amelioration process for the warehouse in illustrative case, e.g., to test any intended changing or solution in prior to implementation