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Hierarchical simulation modelling of distribution centers

Order picking is the most expensive operation in a distribution center. Due to a large amount of labor used in order picking, the cost associated with the labor is high. The objective of this paper is to build a simulation model that would help distribution center managers to forecast their throughput by optimizing the worker configuration. The research uses a hierarchical approach to build a simulation model. The simulation model is divided into small submodels. The submodels are completely independent of each other. The submodels can be combined to make various different complete models. In this research, the submodels are used to build a simulation model of an actual industrial distribution center. The model is then run for twenty-four hours and the results are compared with the flat simulation model of the same distribution center.