The Contingent Nature of Warehouse Flexibility

Abstract

<p><i>Purpose</i> In a volatile marketplace, warehouse management is fundamentally contingent of changes in its supply network environment. Flexibility is therefore a key logistics issue in distribution centre management. This study probes into the nature of warehouse flexibility in a supply network through simulation. <p><i>Design/methodology/approach</i> By using the FlexSim simulation tool the dynamic behaviour of the warehouse system are conceptualised, documented, simulated, analysed and evaluated. <p><i>Findings</i> Simulation revealed that external changes affect daily processes and the reorganisation of warehouse processes. Given the extensity of resource use, simulation also revealed that process reorganisation should not be a daily undertaking. This is because warehouse processes react in unpredictable and different manners to even the smallest disturbance from the environment. This reaction is not necessarily negative impending more long-term change of warehouse processes. <p><i>Originality/value</i> The warehouse is a complex system that self-adapts with limited need to calculate new optimised warehouse processes to counter changes in its environment. Rather than following deterministic optimisation procedures, the development of flexible resources is a key issue in warehouse management. The applied simulation model is generic and therefore applicable in other distribution centres pointing to how to monitor warehouse processes to in a pre-emptively develop warehouse flexibility through change of process context.