Re-Design of a Current State Push Based Towards a Future State Pull Based Logistic System

A case study into the flower auction order handling process at Royal FloraHolland Aalsmeer by discrete event simulation

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The performance of the logistical process from the flower auction at Royal FloraHolland is under pressure. Due to decreased transaction sizes more handling is required to process the same volume and this results in lower performance. The information system used to coordinate the process is based on a fixed relation between auction and distribution which limits the control over the process. In this paper it is investigated how the performance of this process can be improved by re-designing the information system. The process and the current information system are analysed after which three future state scenarios are proposed building up to a pull based logistic system. Two controllers are proposed that increase coordination in the process and use a dynamic structure to deal with local congestion. Also two planning strategies are proposed. The first one within the restriction of the current throughput time criterion, and the second one breaking this open and working towards the client demand. A simulation model of the process is made to test the proposed future states. The future states are tested using different test cases with varying workload. The results from the tests are promising as the performance is improved. Further research is recommended to optimize the controls and to develop the client demand planning in more detail.