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Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital “Francisco José de Caldas” Bogotá, Colombia, South America.

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Page 1: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Validation Using Simulation of a New Cross Docking Facility Design

Presenters: José Antonio Mesa R.Diego Mesa R.

Javier Orjuela C.

Universidad Distrital “Francisco José de Caldas”Bogotá, Colombia, South America.

Page 2: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Validation Using Simulation of a New Cross Docking Facility Design

Team:Javier Orjuela (Director)

José Antonio Mesa R.(Developer)Diego Mesa R. (Analyst)

Guillermo Urrutia (Designer)Francisco Soler (Designer)

Universidad Distrital “Francisco José de Caldas”GICIC Research Team

Bogotá, Colombia, South America.

Sponsors:

Two Bogotá´s City Hall agencies: Fondo Local de Desarrollo de Ciudad Bolívar.Unidad Ejecutiva de Servicios Públicos. UESP.

Page 3: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Abstract

Simulation with ProModel is being used succesfully in the validation process of a new logistic cross docking facility in Bogotá, Colombia, as part of a Master Plan intended to optimize the logistic process of food suplying and make possible, thanks to cost lowering, an efficient and economic solution for poor communities, and stablishing a proven technology for furthers developments.

Page 4: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Presenters

Javier Orjuela C. MSc Operations Research. Production Engineering Specialist. Industrial Engineer. Former experience in food plants.

José A. Mesa R. Production Engineering Specialist. Computer Science Engineer. Former experience managing production plants and Simulation projects.

Diego B. Mesa. Business Manager. Operation Management Specialist. Logistics Specialist.

Page 5: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Application Summary

The Universidad Distrital was contracted to develop a Market Study in order to build a whole new Food Distribution System intended to reduce the cost of food (It has been estimated that 1´000.000 people in Bogotá have only a food at day)

Important inefficiencies had been found, and they generate a lot of wastes, increasing cost for the final consumer

The second phase of the project lead to design a network of logistics facilities, using the market studies results.

Page 6: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Application Summary

A kind of facility must satisfy the market demand for a specific geographic zone, and its physical design and it procedures must be tested before making any final choice.

The Simulation Model is being developed as part of the works of GICIC research group

Page 7: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Agenda

The problem The City Hall Food Suplying Master Plan The Model

Goals Model Inputs Recomendations

Page 8: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

The Problem Validate the Design of a Crossdocking Facility where

goods will be received via heavy trucks, organized temporaly in pallets and then disposed according summarized purchase orders sent to five logistic zones using smaller vehicles

The facility must operate up to 230 tons of food daily, classified in 33 different items, this agregated demand satisfy the requirements of 272.060 habitants and delivered through a network of 807 small stores located on an average distance of 1.6 kms.

The model should allow formulate policies and deploy strategies to balance resources allocation to processes inside the facility

Page 9: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Bogotá, Colombia, South America

Page 10: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Briefing of Bogotá food supplying problem Bogotá is a city of 7´000.000 people. Extremely Poor overpopulated communities,

about 30%, could have only a meal at day They have a dietary deficience: only receive

46% of required calories and 20% of required proteins

With extremely low salaries and laboral inestability, families uses 31% of their incomes in “nutritional” requirements

Between 65 and 70% of the food market is buyed daily at the “corner´s store”

Page 11: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

But Bogotá could be “Well Supplied”

Bogota requires about 10.000 tons of food daily

33% comes from the Ring one, Bogotá and 19 other near cities

44% comes from the Ring two, 4 near provinces

23% comes from the country and the world

Page 12: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

But Food supplying has been diagnosed “Chaotic and inefficient”

Inadecuate handling can produce at least 17% of wastes

Packaging wastes are 9% of the total mass transported

Big dealers and retailers operations adds 21% to cost

Food marketing infraestructure underutilized

Truck fleet is used only at 48%

Page 13: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Bogotá´s Food Supplying Master Plan

A public policy to ensure that population will have acces to the consumption of meals and nourisments in conditions of: Quantity Variety Quality and Inocuity

Page 14: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Plan Principles

Promote Food Access

Citizens

Enviromental

Sustainability

Page 15: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

SAAB (Food Supplying System)

SAAB will allow that producers and small store owners can deal directly makin easier for they his operation in a supply chain knowing offer, demmand and prices.

Improves costs because minimices the quantity of intermediaries and transport

Food are well handled, processed and transported Improves life quality for the whole population

Page 16: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Facilities (Equipments, Infrastructure)

Logistics Management System Quality System (ISO9000, ISO14000, HACCP) Information System

AGRORED NUTRIRED

Op

era

dor

de

Ofe

rta

Op

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dor d

e D

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an

da

SGL

SGC

SGI

infraestructuraLogística

Page 17: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Facility before the project

Page 18: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

The Model

Main Goal: Validate one Design of the future Cross Docking Facility

Design: Physical Functional Procedural

Page 19: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Modeling the system’s components and operations the team wished to obtain a simulation model to test, plan and manage the facility, identifying the possible bottlenecks and causes, capacity restrictions, possible response to different load levels, optimal resource quantities, trucks arriving schedule, results of contrasting technologies and required room to fit needs.

Page 20: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Main Features

Complexity Deterministic Reutilizability Visualization Flexibility

Page 21: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Constraints

Platform works from: 04:00 to 08:00 Receiving (loading) 08:00 to 17:00 Delivering (Unloading)

Only One direction at time, it means, You´re loading or you´re Unloading, and you must finish loading to start unloading.

Area: 3000 sq mts (~27000 sq ft)

Page 22: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Complexity

83 locations 35 entities (Trucks, baskets, pallets) 3 lines of items:

From milk to cheese (dairy) and poultry to meat. 6 types of entities.

From tomatoes to Bananas. FRUVER. Fruits and Vegetables. 11 types of entities.

From Sugar to Noodles. Groceries. 13 types of entities.

Two Path Networks, 90 nodes

Page 23: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Complexity

8 resource types (Delivering Trucks, forktrucks, pallet trucks, operators, lifters)

Entity Attributes making easier programming. Entity basket uses an attribute that allows to determine the type of item, making easier the programming process

Page 24: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Processing

// Abarrotes // El peso en toneladas del camion es: At_carga_en_camion *

Array_kilos_canastilla[At_Tipo_producto] // Si viene con mas de 8 toneladas se descarga con 4 operarios

a 4 ton/ min, // sino a N(7.5 , 1) ton por min con dos operarios IF At_carga_en_camion *

Array_kilos_canastilla[At_Tipo_producto] < 8000 THEN USE 2 Op_descarga FOR (At_carga_en_camion *

Array_kilos_canastilla[At_Tipo_producto] * N(7.5 , 1) / 1000) ELSE USE 4 Op_descarga FOR (At_carga_en_camion *

Array_kilos_canastilla[At_Tipo_producto] * 4 / 1000) ORDER At_carga_en_camion ENT(At_prod_en_camion) TO

Cola_ZI1

Page 25: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

How the three lines were chosen

Trying to balance the quantity of baskets loaded per line to the facility to ensure a permanent flow

A previous market study was developed by GICIC research team These quantities were used to design the ideal fleet size and

scheduling for loading platform

Leche, 43730Papa, 19290

Citricos, 18010Platano, 16080

Arroz, 13120Carne de res, 7400

Harina de tigo, 6650Zanahoria, 6430Papaya, 6430Banano, 6430

Huevo, 6000Pollo, 5470

Tomate, 5200Menudencias, 5180Aceites, 4500Panela, 4340

Cebolla, 3440Arveja verde, 2890

Leguminosas, 2730Guayaba, 2400

Yuca, 2310Chocolate, 2190

Sal, 1980Queso, 1930Pasta, 1930

Frijol, 1610Azucar, 1190

Visceras, 610Espinaca, 380Acelga, 140

0 5000 10000 15000 20000 25000 30000 35000 40000 45000

Kilogramos

DescripciónProductos

Demanda (en Kg) por tipo de alimento

Milk, potatoes, oranges, plantain and rice are the top five, 55% of consumption!!

Page 26: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Arrays

Five arrays are loaded from an Excel File

Demanded baskets for each product

Kg of each product in a basket Basket per pallet Baskets per truck

Carga de arreglos en PromodelEl arreglo Se carga con ColumnaArray_kilos_canastilla movidaArray_canastillas_estiba canas/estibaArray_demanda Numero de EntidadesArray_canast_camion Canas/camionArray_cargado Canas/camion

Producto Nombre Kilos Kilos/Unidad Numero de Entidades Entidad Camiones Canas/camion Canas/camion canas/estiba

Numero Descripción Demanda movida representa requeridos teóricas Asignadas

1 Leche 43730 24 1822 Canastilla 3.6441667 208 216 242 Queso 1930 25 77 Canastilla 0.386 200 210 353 Carne de res 7400 25 296 Canastilla 1.48 200 210 35

29 Banano 6430 25 257 Canastilla 1.286 200 210 3530 Guayaba 2400 15 160 Canastilla 0.48 333 360 60

Page 27: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Shifts

Facility Load resources and locations (0400 to 0800 hrs)

Facility Unload resources and locations (0800 to 1700 hrs)

Mixed

Load operators, movers,

Unload operators, people preparing orders, deliery trucks

Fork trucks, pallet trucks

Page 28: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Shifts

Loadingfacility

Unloadingfacility

Page 29: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Atributes

Page 30: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Model inputs (arrivals file)

An Excel File containing registers of trucks arriving to the platform, arrival time, type of product and baskets quantity transported in each truck.

This is the base of flexibility

Nombre Location Qty Time Ocurrences Freq. At_Tipo_producto At_linea_camion At_carga_en_camionCamion Oferta_agregada 1 240 4 45 1 3 456Camion Oferta_agregada 1 380 1 45 2 27 77Camion Oferta_agregada 1 240 1 45 3 8 296Camion Oferta_agregada 1 380 1 45 4 31 24Camion Oferta_agregada 1 280 1 45 5 16 207Camion Oferta_agregada 1 280 1 45 6 14 218Camion Oferta_agregada 1 320 1 45 7 17 375Camion Oferta_agregada 1 380 1 45 8 28 321Camion Oferta_agregada 1 380 1 45 9 30 47Camion Oferta_agregada 1 380 1 45 10 25 99Camion Oferta_agregada 1 380 1 45 11 24 87Camion Oferta_agregada 1 240 1 45 12 7 1049Camion Oferta_agregada 1 320 1 45 13 21 218Camion Oferta_agregada 1 380 1 45 14 29 128Camion Oferta_agregada 1 320 1 45 15 18 434Camion Oferta_agregada 1 280 1 45 16 13 4347Camion Oferta_agregada 1 240 1 45 17 9 133Camion Oferta_agregada 1 240 2 45 18 4 482Camion Oferta_agregada 1 240 2 45 19 6 322Camion Oferta_agregada 1 320 1 45 20 23 115Camion Oferta_agregada 1 280 1 45 21 15 260Camion Oferta_agregada 1 320 1 45 22 19 286Camion Oferta_agregada 1 280 1 45 23 10 428Camion Oferta_agregada 1 380 1 45 24 32 76Camion Oferta_agregada 1 380 1 45 25 26 14Camion Oferta_agregada 1 320 1 45 26 20 144Camion Oferta_agregada 1 240 1 45 27 5 720Camion Oferta_agregada 1 280 1 45 28 11 357Camion Oferta_agregada 1 280 1 45 29 12 257Camion Oferta_agregada 1 320 1 45 30 22 160

Page 31: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

After loading is complete…

Start preparing purchase orders, send trucks (3 tons) and deliver them to five different logistic zones!!!

Page 32: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Output processing

Groups of orders are prepared inside each delivering truck and sent to each one of five logistics zones

Final orders per store are prepared at the store front

This proces was not detailed deeply, the main scope were operations inside the platform

Page 33: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Final design after adjustments

Page 34: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Final design after adjustments

Page 35: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Final design after adjustments

Page 36: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Dynamic Plots

Page 37: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Benefits

Number of Parking lots for Trucks in system were determined (14)

Trucks permanence in system (average 84.21 minutes) was determined

Page 38: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Future Aplications

Test other 17 platforms (City Logistics) Define costs and Include ABC

methodology Create a Big model Once running, stochasticity will be

measured and implemented to the models

Page 39: Validation Using Simulation of a New Cross Docking Facility Design Presenters: José Antonio Mesa R. Diego Mesa R. Javier Orjuela C. Universidad Distrital

Thanks!!

José Antonio Mesa R. [email protected]

Diego Mesa R. [email protected]

Javier Orjuela [email protected]