In-Class Activity 6 Logistic Problem
In-Class Activity 6 Logistic Problem
In-class activity 6
Logistics Problem
Imagine a large shipping and logistics company that operates a central warehouse to
manage its inventory and fulfill customer orders. The warehouse operates 24/7 and
receives orders from various locations at different times throughout the day. The order
arrivals are as follows:
Time Range Number of Orders
07:00 AM - 12:00 PM 50
12:00 PM - 02:00 PM 25
02:00 PM - 06:00 PM 25
06:00 PM - 12:00 AM 30
12:00 AM - 07:00 AM 20
To ensure smooth operations, the company has set a maximum limit of 150 orders for
incoming shipments. The company serves three types of customers: Retailers,
Wholesalers, and Individual Consumers, with the distribution of customers as follows:
20% Retailers, 50% Wholesalers, and 30% Individual Consumers. Each customer
order is represented by a unique identifier: e.g Blue Ball for Retailers, Red Ball for
Wholesalers, and Yellow Ball for Individual Consumers.
The process of preparing orders involves several steps, including picking the order,
packing it, and preparing it for shipping. To expedite this process of preparing orders,
the warehouse is equipped with both automated picking machines and manual picking
stations handled by workers. The automated machines, of which there are two, have
the same processing time as the manual stations. The processing time for the manual
stations follows a Triangular distribution with parameters (2, 4, 5) minutes. However,
the automated machines undergo a restart after every 20 orders, which takes a
duration following a Uniform distribution of (10, 30) seconds. It's important to note
that the machines can only restart once the ongoing order is fully processed.
The warehouse runs with a team of personnel (workers) who work in shifts, ensuring
operations are covered 24 hours a day. The shift schedule for the employees is as
follows:
Time Range Number of Personnel
08:00 AM - 04:00 PM 6
04:00 PM - 12:00 AM 8
12:00 AM - 08:00 AM 4
Employees do not leave at the end of their shifts until they have completed processing
all the orders assigned to them and then get a full assigned break.
Furthermore, 60 % of the orders require further packing for fragile purposes before
they can be shipped. This packing is performed by specialized employees who are
assigned based on the customer type. The assignment is as follows: Retailer orders are
prepared by Employee A, Wholesaler orders by Employee B, and Individual
Consumer orders by Employee C. Each packing session takes a fixed time of 15
minutes per order.
All employees are entitled to personal breaks, which occur at an average rate of one
break every 90 minutes. The break duration follows an Exponential distribution with a
mean of 15 minutes. Employees only take breaks once they have completed
processing the order they are currently handling. They are compensated with an equal
amount of time for the duration it took to serve the customer.
Run the ARENA model (Perform 30 replications), Run it for 1-week and obtain
and extract the following:
• Average number of orders that were processed in the warehouse
• Average total processing time for all orders, categorized by customer types