The contingent nature of warehouse flexibility

Abstract

PurposeIn a volatile marketplace, warehouse management is fundamentally contingent of changes in its supply network environment. Flexibility is therefore a key logistics issue in distribution centre management. This study probes into the nature of warehouse flexibility in a supply network through simulation.Design/methodology/approachBy using the FlexSim simulation tool the dynamic behaviour of the warehouse system are conceptualised, documented, simulated, analysed and evaluated.FindingsSimulation revealed that external changes affect daily processes and the reorganisation of warehouse processes. Given the extensity of resource use, simulation also revealed that process reorganisation should not be a daily undertaking. This is because warehouse processes react in unpredictable and different manners to even the smallest disturbance from the environment. This reaction is not necessarily negative impending more long-term change of warehouse processes.Originality/valueThe warehouse is a complex system that self-adapts with limited need to calculate new optimised warehouse processes to counter changes in its environment. Rather than following deterministic optimisation procedures, the development of flexible resources is a key issue in warehouse management. The applied simulation model is generic and therefore applicable in other distribution centres pointing to how to monitor warehouse processes to in a pre-emptively develop warehouse flexibility through change of process context.