Conveyor Throughput Optimization at a Distribution Centre

The conveyor system is one of the most popular material handling systems in production and warehouse facilities due to high throughput and safety. The throughput rate of such systems is an essential performance measure. The congestion of the conveyor is a significant problem and as such this issue requires serious attention. FedEx Supply Chain, the 3PL provider for the Canadian Tire distribution centre located at Coteau-du-Lac, Quebec faces productivity issues for their outbound operations during high volume periods. The distribution centre staff at the Company has developed, over the years, their own procedures to prevent bottlenecks at the conveyor. Nevertheless, it remains a challenge to implement different operational scenarios to optimize the throughput. Furthermore, there are a number of operational variabilities along the conveyor, whereas the outbound operations follow a schedule of picking cycles. Hence, a comprehensive simulation model is required to capture various variabilities, identify possible bottlenecks, and predict the effects on throughput of applying different levers. The findings obtained based on the experimentations are analyzed and managerial recommendations are provided. Finally, areas for future research are highlighted