Simulation of the IKEA Distribution Centre in Peterborough, UK

Abstract: Problem IKEA want to avoid building a DC with insufficient capacity, and with imbalances in the material flow, therefore they want to run simulations of the system to see if the material flow is of satisfaction. The focus of this report is aimed towards capacity simulations of the Silo, the automated high storage area. Purpose Run different scenarios of the Silo with different conditions in order to evaluate where bottleneck can upraise and aim for optimal solutions with retained efficiency in the material flow. Method The report is built on both quantitative and qualitative studies. Information gathering has been done from interviews and CAD-drawings in combination with secondary sources. Information from secondary sources was gathered from literature as books, brochures and articles in addition to the Internet. Objective Run capacity simulations of the Silo and look for bottlenecks in the material flow. Conclusion The analysis made of the number of cranes states that four cranes are insufficient and five to seven cranes manage the demanded throughput. We believe the best solution is to use six cranes. Five cranes manage the flow but taken maintenance and breakdowns into consideration six cranes are to prefer. Seven cranes do not increase the throughput according to the analysis and therefore we find seven cranes unnecessary. Hence six cranes are the best solution. The analysing of the storage mode and the number of zones in the Silo shows differences in the throughput. Though for both cases there cannot be any statistically secured results, using the confidence level of 95%. When considering the variation of the number of zones we consider the zoning could be done in a different way. Because of the fact that there are not SRM's in every aisle the cranes have to change aisles. Using the zoning from the front to the back the cranes have to move a long distance when changing aisle for the fast-moving articles in the front of the Silo. Instead we believe the zoning should be done from the left to the right (or the way around) and the cranes in the fast-moving zones should have a crane in every aisle. The other zones could share the other cranes.