Cloud-Based Hybrid Simulation Model for Optimizing Warehouse Yard Operations

Fulfillment centers in the E-commerce industry are highly complex systems that houses inventory and fulfill customer orders. One of the key processes at these centers involves translating customer demands into trucks and yard operations. Truck yards with operational issues can create delays in customer orders. In this paper, we show how a scalable cloud-based hybrid simulation model is used to improve yard operations, optimize flow and design, and forecast yard congestion. Cloud experimentation along with automated database connectivity allows any user to run simulation analyses to derive data driven operational decisions. We tested the model on two real world case studies, which results in cost savings for the organization. This paper also proposes a robust automated framework for setting simulation validation benchmarks and measuring model accuracy.