Simulation of various inventory control strategies in the drinks industry

Beverage industry: Simulating the consolidation of bottling and warehousing sites

Initial situation: Consolidation of two bottling and warehousing sites

A company in the beverage industry was planning to consolidate two bottling and warehousing sites, whilst also seeking to reduce stock levels. The aim was to analyse the impact of this consolidation on delivery capacity, illustrated using the bottling process over the course of a full year.

Objective: To assess storage space, bottling capacity and goods dispatch

The aim was to determine the required storage space, assess the utilisation of bottling capacities and determine the necessary capacity for goods dispatch.

Solution: Simulation using real bottling data from one year

SimPlan imported real bottling data from one year into the simulation model, thereby also modelling the seasonality of the bottling business. Various stock control strategies could be tested against one another within the model.

Results: Warehouse expansion confirmed; capacities sufficient

The simulation confirmed the need for a warehouse expansion. At the same time, it showed that bottling capacities would be sufficient following the site consolidation and that, with an appropriate strategy, the capacity for goods dispatch would also be adequate.

Simulation as a basis for decision-making on site consolidation

The case study demonstrates how a site merger can be simulated in advance using real annual data and different stock strategies, including a clear assessment of the required warehouse space.

 

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