Identifying the optimum warehouse capacity requirement: A system dynamics approach

Lewlyn L R Rodrigues, Farahnaz Golrooy Motlagh, Srinivasa Rao, Sunith Hebbar

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

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.

Original languageEnglish
Title of host publicationProceedings - UKSim 5th European Modelling Symposium on Computer Modelling and Simulation, EMS 2011
Pages220-224
Number of pages5
DOIs
Publication statusPublished - 01-12-2011
EventUKSim 5th European Modelling Symposium on Computer Modelling and Simulation, EMS 2011 - Madrid, Spain
Duration: 16-11-201118-11-2011

Conference

ConferenceUKSim 5th European Modelling Symposium on Computer Modelling and Simulation, EMS 2011
CountrySpain
CityMadrid
Period16-11-1118-11-11

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All Science Journal Classification (ASJC) codes

  • Modelling and Simulation

Cite this

Rodrigues, L. L. R., Motlagh, F. G., Rao, S., & Hebbar, S. (2011). Identifying the optimum warehouse capacity requirement: A system dynamics approach. In Proceedings - UKSim 5th European Modelling Symposium on Computer Modelling and Simulation, EMS 2011 (pp. 220-224). [6131220] https://doi.org/10.1109/EMS.2011.10