Transport and storage operations in a steel coil manufacturing industry make up a large part of a factory’s operating costs. With the advent of automated forklifts, unmanned transport and storage operations are becoming increasingly viable. Automated forklifts have the potential to lower operating costs, reduce the required number of employees, minimize transport damages and eliminate over-processing. Nonetheless, transitioning from manual forklifts to a fully operational automated transport and storage system requires addressing a range of complex decisions. These include the flow path layout, fleet sizing, vehicle dispatching, storage location assignment, and other relevant subjects.

This thesis presents an integrated approach to how the flow path layout design influences the material flow effectiveness, incorporating vehicle scheduling and storage location assignment policies. Based on a real-world case study, analyzed through Discrete-Event Simulation (DES) software, this study addresses the following research question: What in-plant system design facilitates effective material flow by implementing automated transport in a steel coil manufacturing plant?

First, applicable literature is investigated, thereafter, the system is analysed, and design alternatives are generated. The design alternatives vary in the use of manual and automated forklifts, and the flow path layout considers both conventional and zone-based flow approaches. The experiments test the influence of dispatching policies and fleet sizing on all alternatives. Furthermore, battery management, idle-vehicle positioning, unit-load selection and case-specific system constraints are integrated. The storage location assignment is based on the order identification number and the fill level of the storage parks.

By capturing the dynamic and variable nature of a stochastic production system, the DES evaluates the impact of different configurations on performance, costs, and other performance indicators. The cost-performance relations are plotted, resulting in a Pareto front consisting of a set of non-dominated system design configurations. A preferred automation alternative is selected from this set. Conclusions regarding the most effective transport system design and the integrated system design process are drawn.