A simulation study of despatch bay performance in the steel processing industry

The despatch bay is a critical interface within an organisation, linking the warehousing and transport operations. However, delays here have wider supply chain implications given that the flow of materials through the supply chain is disrupted. Despite this, there has been little research on improvement activities to this process. This paper uses a case study of a steel processor to develop a simulation model to test strategies for increasing despatch bay productivity. From the simulation results, it was found that a combination of improvements were needed, to both reduce process times and ensure the earlier receipt of orders. The research approach presented in this paper can be used in other business environments having similar operating conditions.