modeling and simulation of storage space allocation at tpl systems
Allocating storage space at TPL systems differs significantly from traditional private logistics systems. The resources are commodities sold directly to customers of different characteristics. Total revenue suffers when allocating too much to lower-rate (i.e. price sensitive) customers; and the resources allocated to full-rate (i.e. time sensitive) customers become "spoiled" when the orders do not arrive as expected. The random nature of order characteristics (including arrival pattern) makes allocation decisions very hard. This paper proposed a simulation approach that focuses on the development of a robust conceptual framework for simulation modeling and analysis of this important class of problems. Computer models are being developed with ARENA and used to verify and validate the concepts and mechanisms developed. Limited simulation experiments were conducted to compare allocation strategies in terms of defined performance measures, and produced the results consistent with intuition and practice.
simulation logistics systems capacity allocation