Simulation in retail: A case study for process improvement in the receiving area

Simulation tools allow its users to computationally model real-life systems in order to determine their best future outcome. One real-life system that can benefit from simulation is that of the retail industry. This paper describes how simulation can be an effective tool for this type of industry, especially for process improvement projects. In addition, a small case study is presented to demonstrate the use of simulation for a large retailer which needs to improve its unloading and receiving processes. Among the future ideas for research, this paper shows that less obvious methods for process improvement, such as tracking customer loyalty, can be analyzed using simulation to determine which route a retailer should take in order to please its customers. Other topics on this subject are suggested at the conclusion of this paper.