TY - GEN
T1 - Identifying the optimum warehouse capacity requirement
T2 - UKSim 5th European Modelling Symposium on Computer Modelling and Simulation, EMS 2011
AU - Rodrigues, Lewlyn L R
AU - Motlagh, Farahnaz Golrooy
AU - Rao, Srinivasa
AU - Hebbar, Sunith
PY - 2011/12/1
Y1 - 2011/12/1
N2 - This paper deals with the development of a System Dynamics model for the trading system. Simulation is carried out for identifying the optimum space required for the class-A product of ABC analysis in the warehouse. As the Supplier ordering rate has a causal relationship with the available space in the warehouse, the variable Maximum warehouse capacity was varied in order to identify the optimum space required. The point where the Indicated orders follow the Supplier ordering rate is the optimum warehouse capacity. The effect of warehouse capacity on inventory is also studied. The results show that an optimum warehouse capacity required is about 825 products for class A (55% of total) and the analysis of the behaviour of Inventory indicates that there is a reduction in the Bullwhip effect and the system stabilizes at a faster rate as the Supplier ordering rate reaches closer to the Indicated orders.
AB - This paper deals with the development of a System Dynamics model for the trading system. Simulation is carried out for identifying the optimum space required for the class-A product of ABC analysis in the warehouse. As the Supplier ordering rate has a causal relationship with the available space in the warehouse, the variable Maximum warehouse capacity was varied in order to identify the optimum space required. The point where the Indicated orders follow the Supplier ordering rate is the optimum warehouse capacity. The effect of warehouse capacity on inventory is also studied. The results show that an optimum warehouse capacity required is about 825 products for class A (55% of total) and the analysis of the behaviour of Inventory indicates that there is a reduction in the Bullwhip effect and the system stabilizes at a faster rate as the Supplier ordering rate reaches closer to the Indicated orders.
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U2 - 10.1109/EMS.2011.10
DO - 10.1109/EMS.2011.10
M3 - Conference contribution
AN - SCOPUS:84856997885
SN - 9780769546193
T3 - Proceedings - UKSim 5th European Modelling Symposium on Computer Modelling and Simulation, EMS 2011
SP - 220
EP - 224
BT - Proceedings - UKSim 5th European Modelling Symposium on Computer Modelling and Simulation, EMS 2011
Y2 - 16 November 2011 through 18 November 2011
ER -