Model Decomposition Speeds Distribution Center Design

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.