MODEL DECOMPOSITION SPEEDS DISTRIBUTION CENTER DESIGN

Recently, in designing Hewlett-Packard's new North American distributi on center, we decomposed the modeling (and design) process into loosel y independent pieces that could be developed in a parallel or concurre nt fashion, rather than trying to model the entire system at once. Usi ng this approach, we developed simulation models of four different fac ets of the distribution center, with each model providing useful resul ts in time to aid in system design decisions. While not all systems ca n be easily decomposed, we believe many simulation modeling projects c ould benefit from such an approach. The new distribution facility is n ow operating with a 60 percent improvement in order-picking efficiency and an 80 percent increase in shipment-preparation efficiency.