Assessing the operational performance of an automated distribution center in food and beverage industry

Automated distribution centers play a critical role in ensuring the smooth flow of goods within supply chains. They offer numerous benefits, including reduced operating costs, increased productivity, improved accuracy in building orders, and enhanced traceability of the products. However, designing and validating such facilities can be a complex and time-consuming process, requiring a deep understanding of the underlying operations and their interactions. In terms of cost, automated distribution centers represent approximately 20 per cent of total logistics costs and they are critical to meet customer service requirements. To increase efficiency, space utilization and minimization of waste, many companies are trying to automate their processes. This paper aims to validate the performance of an automated distribution center (warehouse) located in Atlanta (USA) by using discrete-event simulation methodology. This paper focuses on the analysis of the current state of the warehouse by describing the “As-Is” scenario and giving the first evaluation of the entity of the flows within the warehouse. Then, the simulation of the “To-Be” scenario has been assessed to evaluate the design of the newly automated warehouse and by anticipating and solving possible issues that might arise in the implementation phase. According to the findings, the introduction of a new fleet of laser-guided vehicles brings a notable enhancement in overall warehouse efficiency. This improvement was evidenced by notable reductions in average cycle time, travel distance, and the required number of vehicles. The results highlight the positive impact of implementing the discrete event simulation on streamlining warehouse operations and optimizing resource utilization.