Optimizing Outbound Process Lead Times in High-Bay Warehouse Operations

Koninklijke Euroma B.V. operates a high-bay warehouse in Zwolle for storing and distributing raw materials, packaging materials, and finished goods. However, inefficiencies in the outbound process cause delays, with 14% of outbound pallets exceeding the one-hour delivery threshold. This thesis initially formulated a Mixed-Integer Program (MIP), but it proved inadequate for large-scale problems. Therefore, a discrete event simulation model was developed to optimize the outbound process by analyzing scheduling strategies and parameter adjustments. The model evaluates the impact of dispatching rules, pipeline threshold configurations, and operator behavior on warehouse performance. While acknowledging limitations, simulation experiments show that increasing pipeline thresholds and implementing alternative dispatching rules improve on-time delivery and reduce tardiness. Based on these findings, recommendations are provided to enhance operational efficiency. These insights can contribute to the optimization of Euroma’s warehouse operations, reducing costs associated with production standstills and truck waiting times.