Dominant factors in the simulation-based development of warehousing services

Abstract

ABSTRACT Robust solutions are needed in the context of warehouse planning in contract logistics. To achieve this goal, knowledge about dominant factors is a prerequisite and thus presents the aim of this research. The factors to be evaluated are identified through a literature analysis, which leads to more than 40 factors from over 30 sources. To explore a broad range of factors, including their interaction, a design of experiments approach is used in a generic simulation model applied in a multiple-case study. The results indicate the overall dominance of demand-related factors and also the high importance of the equipment specifications across cases. Consequently, managerial insights include a shift of planning resources towards these most dominant factors. Based on the research results, the focus should be on a thorough analysis of the demand structure and the characteristics of the technical equipment. Also, when employing simulation models for the planning of order picking systems, it is strongly advised to use a parameter variation which draws a multifaceted picture of the situation in order to enable a justified decision. Implications for warehouse research are the consideration of variable input, especially regarding demand characteristics, to create relevant order picking scenarios when testing the optimisation potential of new developments.