Simulation-based Performance Improvement of a Defense Logistics Warehouse

Warehouses play a critical role in supply chains. They serve as a vital link between manufacturers and customers. In this study, we investigate performance of the largest warehouse (Eastern Distribution Center - EDC) of the Defense Logistics Agency (DLA) located in New Cumberland, PA and propose a near optimum design for the receiving area of the warehouse to improve its performance. First, we develop a simulation model of the system. Second, we interface an optimization model with the simulation in order to optimize the number of people working at the induction stations. In the optimization model, our goal is to minimize the average cycle time of a material type. Last, we re-design the existing system based on results from the optimization. The simulation and the optimization models are developed through the use of ARENA 13.9 and Opt Quest