The contingent nature of warehouse flexibility

Adam Sadowski, Piotr Wojciechowski and Per Engelseth

International Journal of Productivity and Performance Management, 2021, vol. 71, issue 8, 3417-3442

Abstract: Purpose - In 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/approach - By using the FlexSim simulation tool the dynamic behaviour of the warehouse system are conceptualised, documented, simulated, analysed and evaluated. Findings - Simulation 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/value - The 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.

Keywords: Warehouse management; Contingency theory; System dynamics; Simulation; Case study (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-05-2020-0250

DOI: 10.1108/IJPPM-05-2020-0250

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