A Truly Circular Supply Chain Project (Optimizing The Use Of Cardboard Material By Simulating The Warehouse Operations)

Abstract

The imperative of environmental responsibility extends across all sectors, prompting companies to initiate projects aimed at minimising their environmental impact. This project's core objective is a comprehensive assessment of DSV's company warehouse, with the aim of transforming it into a circular supply chain aligning it with sustainable and efficient practices. The main question is it applicable to simulate such an operation and find a solution to eliminate the waste of material in the warehouse? And which factors are more important to control while applying CE concept. To achieve this transformation, this thesis incorporates lean manufacturing principles. The VSM concept is applied, and the 6R concept is considered while developing the model. Also, proposed solutions for closing the supply chain loop are offered to ensure the robustness of the results. The simulation model is constructed using WITNESS software, validated for accuracy, and subsequently subjected to twelve distinct scenarios. These scenarios simulate various situations the warehouse may encounter, allowing an in-depth examination of the model's flexibility. Six scenarios pertain to off-peak seasons, characterised by an average of 7,000 packages per day, while the remaining six scenarios represent peak seasons, with an average of 10,000 packages per day. Each scenario is run independently, with the results meticulously documented and analysed. A comparative evaluation is conducted to assess the effectiveness of each alternative. The key parameters used for performance comparison are the level of blockage within the system, categorised as low, moderate, or high, and the utilisation rate of the processes represented as a percentage. These factors serve as pivotal indicators to assess the efficiency and effectiveness of the model. It is observed that the models not considering the recycling process exhibit greater flexibility than their counterparts. This result is important due to the significant difference they can make to the warehouse operation by increasing the efficiency of the operation, saving cost, and aligning with contributing to making their operations greener. Furthermore, suggestions for future improvements are presented in this thesis, ensuring that any on-site actions are grounded in a simulation that faithfully reflects reality.