Evaluating the Capability of New Distribution Centers Using Simulation Techniques

One of the difficulties in a product distribution management system of new Distribution Centers(DCs) is no historical data and no experience. In this paper, we develop a product distribution model to estimate the capability of the product distribution system of the new DCs associated a question on the increasing arrival product volumes. In order to develop the model, the exponential distribution and triangular distribution techniques were used to vary on the process of importing arrival product and the operating process in the system . The real life application is used. Chiang Khong, Chiang Sean and Mae Sai DCs in Chiang Rai province, Thailand were applied as the case study. The product distribution system of the new DCs was systematically described by simulating the models. The bottleneck problem finally reflects on the efficiency of the system by improving the capability of the system.