Model Decomposition Speeds Distribution Center Design

M. Eric Johnson and Tom Lofgren
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M. Eric Johnson: Owen Graduate School of Management, Vanderbilt University, Nashville, Tennessee 37220
Tom Lofgren: North American Distribution Operation, Hewlett-Packard Company, 915 Story Road, San Jose, California 95122

Interfaces, 1994, vol. 24, issue 5, 95-106

Abstract: Recently, in designing Hewlett-Packard's new North American distribution center, we decomposed the modeling (and design) process into loosely independent pieces that could be developed in a parallel or concurrent fashion, rather than trying to model the entire system at once. Using this approach, we developed simulation models of four different facets of the distribution center, with each model providing useful results in time to aid in system design decisions. While not all systems can be easily decomposed, we believe many simulation modeling projects could benefit from such an approach. The new distribution facility is now operating with a 60 percent improvement in order-picking efficiency and an 80 percent increase in shipment-preparation efficiency.

Keywords: facilities/equipment planning: layout; simulation: applications (search for similar items in EconPapers)
Date: 1994
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