Acta logistica

logistica - International Scientific Journal about Logistics

Volume: 8 2021 Issue: 2 Pages: 107-116 ISSN 1339-5629

SOLVING THE BOTTLENECK PROBLEM IN A WAREHOUSE USING SIMULATIONS

Jana Fabianova; Jaroslava Janekova; Jozef Horbulak

doi:10.22306/al.v8i2.209 Received: 05 Dec. 2020; Revised: 26 Jan. 2021; Accepted: 20 Feb. 2021

SOLVING THE BOTTLENECK PROBLEM IN A WAREHOUSE USING

SIMULATIONS
Jana Fabianova
Technical University of Kosice, Faculty of Mining, Ecology, Process Control and Geotechnology, Letná 9, Košice,
Slovakia, EU, [email protected] (corresponding author)
Jaroslava Janekova
Technical University of Kosice, Faculty of Mechanical Engineering, Letná 9, Košice, Slovakia, EU,
[email protected]
Jozef Horbulak
Technical University of Kosice, Faculty of Mining, Ecology, Process Control and Geotechnology, Letná 9, Košice,
Slovakia, EU, [email protected]

Keywords: bottleneck, workforce allocation, simulation, ExtendSim

Abstract: The uneven workload distribution and working time utilisation create a bottleneck, leading to inefficient
utilisation of capacity and increased costs. A bottleneck is a limiting and risk factor for any business entity. In the case of
a distribution warehouse, the bottleneck limits its ability to meet the requirements for sending an order within the required
time limit. Delays at any phase of a distribution process may result in non-compliance with customer requirements. In
solving capacity problems and bottlenecks elimination, computer simulations and optimisation are often used. The article
presents a basic simulation analysis of workload distribution and work times, useful for logistics companies, thus for the
area of human and financial resources. In the article, the use of simulations in the ExtendSim9 program to eliminate the
bottleneck is discussed. The bottleneck is solved by experiments on a simulation model when optimal workers assignment
to individual workplaces of the warehouse is sought. The two final proposals for workers allocation, with the current and
increased number of workers, are compared in workforce utilisation and system stability. The simulation method allows
verification of the proposals' impacts in advance and practically with no financial costs.

1 Introduction methodology for carton set optimisation in e-commerce

The efficiency of activities in a distribution warehouse warehouses was proposed and evaluated by [6]. Their
depends on several factors. The organisation of storage carton set optimisation approach can improve the shipping
space, the layout of shelves and management of workforce cost and carton utilisation, and so considerably improve the
and workflow are among the most important. The process carbon footprint of the operations. An increased number of
of ensuring the shipment, from receiving the order, e-commerce companies implement the unmanned smart
determining its priority, packaging, and picking, must be warehouses. In order to reduce the demand response time
managed within the required time limit. Delays at any stage in this smart warehouse, a novel picking strategy was
may result in non-compliance with the delivery deadline. designed by [7] to firstly split the orders, and then assign
The issue of warehouse optimisation is solved in science the partial orders to different pickers. The paper by [8]
papers from different points of view. Warehouse layout discussed the optimisation of warehouse management in
and the picking performance were solved in many of them. the assembly and distribution company, which was made
For instance, Amorim-Lopes et al. [1] presented a three- using particular methods of multi-criteria evaluation of
step methodology to analyse and experiment with layout variants. Using the data envelopment analysis, the
and storage assignment policies to improve the picking performance of a logistic company with twelve warehouses
performance. was evaluated in [9].
Similarly, [2] studied the optimal layout design for Order picking is one of the most challenging activities
block stacking. Minimising the travel distance of a picking in terms of time, labour, and cost for most warehouses [10].
tour is often considered an imperative factor in improving Mainly e-commerce warehouses face ever smaller orders
warehouse operation efficiency. The paper by [3] that must be delivered ever faster, often within 24 hours.
concentrated on the performance of the genetic algorithm That puts pressure on the order picking process as the
method and its comparison to other routing strategies such orders pickers' workload becomes higher and higher and
as heuristics, the experienced warehouse picker and the leads to congestion in the warehouse [11]. Firms need to
brute-force algorithm under given assumptions. focus on many factors to achieve their goals such
Possibilities of optimisation the stocks were pointed out in minimising costs, profit maximisation and increasing
[4]. Mirčetić et al. [5] focused on the problem of forklifts system efficiency. One of the significant factors impacting
engagement in warehouse loading operations. The the productivity of warehouses is workforce. Besides the

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 Acta logistica
logistica - International Scientific Journal about Logistics
Volume: 8 2021 Issue: 2 Pages: 107-116 ISSN 1339-5629

SOLVING THE BOTTLENECK PROBLEM IN A WAREHOUSE USING SIMULATIONS

Jana Fabianova; Jaroslava Janekova; Jozef Horbulak

correct selection of employees, their motivation and based on ExtendSim was researched by [23] and machinery
qualifications, also correct assignment of employees to allocation in the container terminal by [24]. In the
workplaces and a fair distribution of work among the nonindustrial area, as an example can be mention [25],
employees is important. Personnel scheduling has a which used CPLEX and ExtendSim to solve the stochastic
significant influence not only on the warehouse optimisation model for Emergency Department.
productivity but also on the development of employee The aim of the paper is optimisation of the workforce
competencies [12]. Ernst et al. [13] considered an allocation in the warehouse. Simulation and optimisation
employee scheduling problem arising in service industries are performed by software tool ExtendSim9. The
with flexible employee availability and flexible demand. In simulations will verify alternatives for assigning workers
the literature review [14], new trends and approaches were to the picking and packing workplace to eliminate the
presented for the personnel scheduling problems. existing bottleneck and uneven workload.
Similarly, authors of [15] reviewed rostering problems in
specific application areas and the models and algorithms 2 Materials and Methods
that had been reported in the literature for their solution. 2.1 Case study description
It is important to state that many software tools are The distribution warehouse of the internet storage with
developed for staff scheduling, often based on nutritional supplements is operated as an e-shop without
mathematical models using efficient optimal or heuristic stone shops. Customers order goods through the company's
algorithms. Masoud [16] developed a simulation-based website. The store delivers the goods within 24 hours, if
optimisation framework for labour management to the order was placed within the specified time limit. If later,
optimise labour allocation. Andersson [17] presented a then the shipment is delivered within 2 days.
simulation-optimisation system for personnel scheduling Approximately 80% of orders go to export. The average
in which the multi-objective evolutionary algorithm number of orders received is 2 600 to 2 800 per day. Table
NSGA-II had been implemented. Among the software 1 shows the time and number of received orders from
tools, ExtendSim is often used for simulation and 15.01.2020, when 2 673 orders were received. Picking
optimisation [18]. In the literature, there are presented starts at 6:00 and lasts until 18:00. From the overview in
many researches and real-word studies about ExtendSim Table1, it is evident that most orders come for picking at
application. For example, using ExtendSim to optimise the 6:00, but this does not mean that customers sent their order
delivery process is presented in [19], to streamline at this time. All orders that arrive after the 24-hour delivery
production logistics in [20], to optimise wastes flow in [21] time limit are carried over to the next day and packed in the
and assess the meat processing and cutting production in morning at the beginning of the shift.
[22]. Also, optimising the command and control process

Table 1 Time and number of orders received for individual transport companies
Transport company /Number of orders
Time Cargus GLS Hr Zásielkovňa PPL GLS HU Post DHL
6:00 236 42 83 73 116 95 76
7:00 7 6 10 8 11 7 6
8:00 37 10 18 14 18 14 13
9:00 58 17 26 21 34 19 19
10:00 67 22 31 37 38 30 27
11:00 73 27 43 43 44 39 34
12:00 87 32 46 46 57 37 41
13:00 17 6 54 55 63 51 56
14:00 69 54 51
15:00 26 39 62
16:00 12 21 20
17:00 6 16

Picking up goods in the warehouse is done manually The company uses services of seven transport companies
using human force. Orders are packed according to for delivery. Transport companies and departure times for
priority. The highest priority is given to orders that belong individual transport companies are listed in Table 2.
to the transport company that leaves the warehouse first.

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 Acta logistica
logistica - International Scientific Journal about Logistics
Volume: 8 2021 Issue: 2 Pages: 107-116 ISSN 1339-5629

SOLVING THE BOTTLENECK PROBLEM IN A WAREHOUSE USING SIMULATIONS

Jana Fabianova; Jaroslava Janekova; Jozef Horbulak

Table 2 Departure times for individual transport companies

Transport Table 3 Input data for the simulation model
Deadline for packing all packages
company Time of process Conveyor
Cargus 13:50 Workplace (min.) capacity Emploee
GLS HR 13:50 Min. Max. Likelist (crates)
Zásielkovňa 14:20 Picking 2.5 5.5 4.0
PPL 14:50 Transport 0.6 40 28
GLS HU 17:20 Packing 2.5 4.0 3.3
Post 17:50
Based on the scheme, a simulation model is created in
DHL 18:00 the environment of the simulation program ExtendSim9
(Figure 2). Parameters for the simulation are entered based
2.2 Problem definition and method of solution on measured values. The simulation time is 720 minutes
Observations have shown that picking and packing and represents a 12-hour work shift. The model is shown
workers are unevenly distributed, causing significant in Figure 2, and the individual blocks of the model are
downtime. The high number of pickers and the low number marked with a number in the figure, while the description
of packaging workers will cause them not to catch up to of their function is as follows:
pack orders, and the conveyor will become clogged. 1. "Create" blocks, each of which represents the
Therefore, the pickers will not send another order and will transport company to which the orders belong. The
have to wait until the space on the conveyor becomes free. blocks generate orders that arrive to the system at
On the contrary, the high number of people at the time intervals specified in Table 1.
packaging lines and the low number of picker will cause 2. The "Set" blocks assign priority to each order.
few crates to come on the conveyor and thus workers will Prioritisation is done in descending order.
have to wait for the order, which causes considerable 3. The "Select Item In" block is used to combine input
downtime, which threatens delivery to the customer within request streams into one stream.
24 hours of ordering. 4. The "Queue" block represents the stacker at Picking,
The solution of this problem is sought by using a where orders waiting to be processed are
simulation model in the ExtenSim9 program, which accumulated. The "Queue" block setting is by priority
simulates the arrival of an order for picking, its picking and system.
the arrival to packing lines. Alternatives to the allocation 5. The first block "Activity" in the model represents
of workers to the picking and packing workplace to Picking, where the products are picked up from the
eliminate the existing bottleneck and uneven workload will warehouse according to the order. The time to pick up
be experimentally verified by simulations. one order here is at least 2.5 minutes, at most 5.5
minutes and most often 4 minutes.
2.3 Creating a simulation model in ExtendSim9 6. The block "transport" represents the movement of the
The simulation model is created based on data from the order in the crate on the conveyor, where the
analysis of the order picking process. The basis for the movement time is 0.6 minutes, the capacity of the
simulation model is a scheme of the simulation model conveyor is 40 crates.
showing chronologically the sequence of activities. The 7. The second block "Activity" represents the
intervals and the number of incoming orders per day were packaging, where the products picked up from the
determined by observation and measurement. "Picking" on the conveyor come. The time settings
Subsequently, the time of picking up of one order and the are as follows: at least 2.5 minutes, at most 4 minutes
time required for its packaging were measured. The and most often 3.3 minutes.
scheme of the simulation model is shown in Figure 1., other 8. The "Select Item Out" block is used to divide one
input data related to the process of picking orders are in input request stream into any number of output
Table3. streams.
9. Requests leave the system via the "Exit" blocks. The
simulation model contains seven such blocks
representing transport companies.
10. The last block "Plotter Discrete Event" plots graphs
Figure 1 Scheme of simulation model of the simulation process from the input values.
1. received orders, 2. priority assignment to orders, 3. row,
4. product pickup, 5. product transfer, 6. packing, 7. dispatch

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 Acta logistica
logistica - International Scientific Journal about Logistics
Volume: 8 2021 Issue: 2 Pages: 107-116 ISSN 1339-5629

SOLVING THE BOTTLENECK PROBLEM IN A WAREHOUSE USING SIMULATIONS

Jana Fabianova; Jaroslava Janekova; Jozef Horbulak

Figure 2 Simulation model in ExtendSim9 program

3 Results and discussion 3.1 Proposal No. 1 with the available number of
The simulation model is applied to experimentally employees
verify the operation of the warehouse and optimise the The first proposal simulates a system with an available
schedule of activities for the workforce. Two proposals for number of employees, representing 28 employees per one
the organisation of work are verified experimentally. shift. The model is first necessary to enter the measured
Proposal number 1 considers the current number of values for the individual "Activity" blocks. In the first
employees and experimentally redistributes the employees "Activity" block, which represents Picking, we set the
at both workplaces in order to find the optimal distribution shortest time to 2.5 minutes, the longest time to 5.5 minutes
of the workforce. Proposal number 2 envisages an and the most likely time to 4 minutes. The second
increased number of workers to reduce the system's high "Activity" block represents the packaging lines, where the
workload and tension. Also, in proposal number 2, the time settings are as follows: shortest: 2.5 minutes, longest:
schedules of the increased number of employees are 4 minutes and the most likely time to 3.3 minutes. In the
experimentally verified in order to achieve an optimal "Transport" block, a value of 0.6 minutes for the move time
workload utilisation of approximately 80%. This would is entered, representing the time required to move the crate
reduce the risk of bottlenecks and failure of processes. from Picking to the packing line. Finally, it is necessary to
enter the number of employees in the individual "Activity"
blocks. The utilisation of "Activity" blocks is shown in
Figure 3.

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 Acta logistica
logistica - International Scientific Journal about Logistics
Volume: 8 2021 Issue: 2 Pages: 107-116 ISSN 1339-5629

SOLVING THE BOTTLENECK PROBLEM IN A WAREHOUSE USING SIMULATIONS

Jana Fabianova; Jaroslava Janekova; Jozef Horbulak

Figure 3 Use of activity-Picking and packing blocks

Figure 4 and Figure 5 display the course of the colour curves. The vertical axis expresses the number of
simulation in proposal 1. In the figures, order packing processed orders. The graphs show that all orders received
times for individual transport companies are expressed by were packaged but just before the time limit.

Figure 4 Result of proposal No. 1 for transport companies (Cargus, GLS HR, Zásielkovňa , PPL)
Cargus, GLS HR, Zásielkovňa, PPL

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 Acta logistica
logistica - International Scientific Journal about Logistics
Volume: 8 2021 Issue: 2 Pages: 107-116 ISSN 1339-5629

SOLVING THE BOTTLENECK PROBLEM IN A WAREHOUSE USING SIMULATIONS

Jana Fabianova; Jaroslava Janekova; Jozef Horbulak

Figure 5 Result of proposal No. 1 for transport companies (GLS HU, Post, DHL)
GLS HU, Post, DHL

Experimenting with the deployment of employees, we 3.2 Proposal No. 2 with an increased number of
came to the conclusion that the optimal solution is 15 employees
people on Picking and 13 people on Packing. The The second proposal simulates a system with an
advantage of this proposal is that the company does not increased number of employees. The setting of times in
have to spend any funds to hire more employees. The individual "Activity" blocks is the same as in proposal 1.
disadvantage is the high workload, which represents 98% In this proposal, we have increased the number of
at the Picking and 93% at the Packing (Figure 3). Another employees at Picking by 3 and at the Packing by 2. A total
disadvantage is the small time reserve, which means that of 33 workers are employed in this proposal. The result is
the system operates in a highly tense mode. From the a reduction in Picking utilisation from 98% to 82% and
graphs in Figure 4 and Figure 5, we can see that all orders Packing from 93% to 80%. The utilisation of "Activity"
were packed but just before the time limit. An unexpected blocks in proposal 2 is shown in Figure 6.
increase in orders would mean that the warehouse would
not be able to ship all orders, which would lead to non-
delivery of the order and cause customer dissatisfaction.

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 Acta logistica
logistica - International Scientific Journal about Logistics
Volume: 8 2021 Issue: 2 Pages: 107-116 ISSN 1339-5629

SOLVING THE BOTTLENECK PROBLEM IN A WAREHOUSE USING SIMULATIONS

Jana Fabianova; Jaroslava Janekova; Jozef Horbulak

Figure 6 Use of activity-Picking and packaging blocks in proposal No.2

Figure 7 and Figure 8 show the course of the simulation and the vertical axis shows the number of orders. The
in proposal 2, where the colour curves represent the graphs show that the time reserves are much larger than in
packing times of orders for individual transport companies proposal 1.

Figure 7 Result of proposal No. 2 for transport companies (Cargus, GLS HR, Picking, PPL)
Cargus, GLS HR, Zásielkovňa, PPL

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logistica - International Scientific Journal about Logistics
Volume: 8 2021 Issue: 2 Pages: 107-116 ISSN 1339-5629

SOLVING THE BOTTLENECK PROBLEM IN A WAREHOUSE USING SIMULATIONS

Jana Fabianova; Jaroslava Janekova; Jozef Horbulak

The advantage of proposal 2 lies in the reduction of the increase of orders by about 300. The disadvantage of this
workload of employees and in the creation of larger time proposal is that the company would have to hire another 5
reserves. The graphs and Table 3 show that the time employees, which would result in an increase in labour
reserves have increased significantly compared to the first costs.
proposal. Such system can withstand an unexpected

Figure 8 Result of proposal No.2 for transport companies (GLS HU, Post, DHL)
GLS HU, Post, DHL

Table 3 Packaging times of the last package for information on the optimal distribution of staff, which
individual transport companies in proposal No.2 eliminated the bottleneck. The total number of employees
Transport 28 was in the optimal solution divided into 15 people for
Packing time of last order
company picking and 13 people for packaging. In this mode, the
Cargus 13:06 system managed to meet the requirements, all orders
managed to be packed on time. However, the workload of
GLS HR 13:18 picking workers was 98% and packaging 93%. The
Zásielkovňa 13:40 advantage of this proposal is that the company does not
PPL 13:50 have to spend any funds to hire more employees. The
disadvantage is the high work commitment and small time
GLS HU 16:10 reserves, which would, in the event of an unexpected
Post 17:12 increase in orders, cause the warehouse not to be able to
DHL 17:20 ship all orders.
Proposal 2 considered an increased number of
employees. The aim of this proposal was to remove the
The analysis of activities in the warehouse showed that bottleneck and at the same time reduce the workload of
the company has a problem in the organisation of work in workers to about 80%. In case of unexpected delays and
the warehouse, specifically a bottleneck in the picking sudden increases in orders, this burden creates enough
section. The problem in the organisation of work was
reserve time. Repeated experiments on the simulation
caused by the uneven distribution of employees in the
model have provided a solution for the optimal distribution
picking and packaging departments. To overcome this
of workers in increased numbers. The results of the
problem, two proposals were verified by ExtendSim9
simulation showed that if we increase the number of
simulation program to find the optimal allocation of workers in picking by three and in the packaging by two,
workforce into workplaces.
the utilisation rate in picking will decrease to 82% and in
Proposal 1 considered the currently available number packaging to 80%. In such a work schedule setting, the
of workers, while the simulations examined the
system would be able to withstand an unexpected increase
possibilities of dividing the workers into the picking and in orders of approximately 300.
packaging department. The simulation results provided

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 Acta logistica
logistica - International Scientific Journal about Logistics
Volume: 8 2021 Issue: 2 Pages: 107-116 ISSN 1339-5629

SOLVING THE BOTTLENECK PROBLEM IN A WAREHOUSE USING SIMULATIONS

Jana Fabianova; Jaroslava Janekova; Jozef Horbulak

By comparing both proposals only based on direct motivation, skills, and qualifications of the workforce.
costs, proposal 1 is a more appropriate solution to the Also, the work environment and workplace equipment
bottleneck problem. It does not require any additional affect the performance provided. These factors have not
costs, and by a simple organisational change, the been included in the presented simulation model.
bottleneck can be eliminated. In terms of the overall risk of
the assessed system, indirect costs, and concerning Acknowledgement
sustainability, the solution according to proposal 1 is This article was supported by the state grant agency KEGA
unacceptable, or acceptable only in the short term. The 012TUKE-4/2019, VEGA 345 1/0638/19, APVV-19-0418 and
analysed company is therefore forced to seek a solution to APVV SK-SRB-18-0053.
the bottleneck by increasing capacity. This is either by
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logistica - International Scientific Journal about Logistics
Volume: 8 2021 Issue: 2 Pages: 107-116 ISSN 1339-5629

SOLVING THE BOTTLENECK PROBLEM IN A WAREHOUSE USING SIMULATIONS

Jana Fabianova; Jaroslava Janekova; Jozef Horbulak

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