Simulation Modelling of Warehouse Capacity Re-allocation to Improve Inbound Logistics Performance: A Study Case

Muhamad Dinaryo, I Nyoman Pujawan, Niniet Indah Arvitrida

2019

Abstract

The supply chain system in the fertilizer industry is quite complex because it involves many activities such as internal logistic, material transportation processes, a number of factories, and warehouse management. The process of raw materials handling that starting from the port to the warehouse is very influential on the company's ability to carry out operational activities in the production department. To improve the competitiveness of the company, the case company needs to take a number of strategic steps and to run a transformation program for becoming an efficient, integrated, and sustainable fertilizer producer. The problems that occur in the inbound logistics activities at the case company are the raw materials stored in warehouses often overcapacity, causing a material accumulation when there is new raw material arriving at the port. Therefore, warehouses need to periodically reorganize their storage in order to keep operating inefficient manner. This research aims to help overcome the problems that occur in the company by examining several alternative solutions in inbound logistics activities to reduce material transferred between port, production warehouses, and buffer warehouses by using model simulation method. The method that is going to be used to solve this problem is the Discrete Event Simulation (DES), in which the improvement system does not disrupt the existing system and doesn't cost too much time and money. This research proposed a scenario of warehouse capacity re-allocation for raw materials by prioritizing the highest frequency of raw material arrival. By using the improved system, it reduces the total average volume of material transferred from the port to production warehouses by 13.29%, from port to buffer warehouses by 10.21% and from buffer warehouses to production warehouses by 17.43%.

Paper Citation

in Harvard Style

Dinaryo M., Pujawan I. and Arvitrida N. (2019). Simulation Modelling of Warehouse Capacity Re-allocation to Improve Inbound Logistics Performance: A Study Case.In Proceedings of the 1st International Conference on Industrial Technology - Volume 1: ICONIT, ISBN 978-989-758-434-3, pages 12-20. DOI: 10.5220/0009403300120020

in Bibtex Style

@conference{iconit19,
author={Muhamad Dinaryo and I Nyoman Pujawan and Niniet Indah Arvitrida},
title={Simulation Modelling of Warehouse Capacity Re-allocation to Improve Inbound Logistics Performance: A Study Case},
booktitle={Proceedings of the 1st International Conference on Industrial Technology - Volume 1: ICONIT,},
year={2019},
pages={12-20},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009403300120020},
isbn={978-989-758-434-3},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Industrial Technology - Volume 1: ICONIT,
TI - Simulation Modelling of Warehouse Capacity Re-allocation to Improve Inbound Logistics Performance: A Study Case
SN - 978-989-758-434-3
AU - Dinaryo M.
AU - Pujawan I.
AU - Arvitrida N.
PY - 2019
SP - 12
EP - 20
DO - 10.5220/0009403300120020