Authors: Stevo Akkerman (Tata Steel IJmuiden), Daan Merkestein (Systems Navigator)
Use of mathematical modelling of a new steel coil storage/ distribution warehouse has generated storage space for 300 additional coils and results in an 8-10% greater potential throughput than pre-modelling designs indicated.
DELFT; Nov. 27, 2018 – Major investment decisions in the business sector are often accompanied by major uncertainties. For logistics projects, these uncertainties often relate to the dependencies between different parts of the logistics systems. Additionally, arrival patterns are, in practice, not nicely distributed according to an exponential distribution. There is variability over time in the various production processes, and one has to deal with peaks and failures. A simulation model of the logistics process can clarify this uncertainty by simulating the entire process, with all dependencies and relevant parts of the logistics included in the model.
A good example of an application for a simulation model is the LA warehouse project of Tata Steel IJmuiden. In collaboration with Systems Navigator BV, Tata Steel started the construction of a simulation model in early 2018 to analyse and optimise the logistics of a planned new steel coil warehouse. The coils are stored in cradles in the warehouse, but certain cradles are only suitable for some of the roles, so it is important to choose these cradle dimensions well and to place them smartly on the available floor space.
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About Tata Steel
Tata Steel produces, manufactures and distributes high quality steel for products in various industries, such as automotive, packaging and construction. At Tata Steel in IJmuiden more than 9,000 employees work on an annual steel production of almost 7Mt/y.
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