lOMoARcPSD|39211872 VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF INDUSTRIAL ENGINEERING & MANAGEMENT INTRODUCTION TO LOGISTICS AND SUPPLY CHAIN MANAGEMENT COLD STORAGE WAREHOUSE SIMULATION – A CASE FOR FRUIT PRODUCTS Group : 12 Advisor : Assoc. Ho Thi Thu Hoa Student Name & ID : Nguyen Thi Ngoc Han – IELSIU21195 Dinh Thuy Nguyen – IELSIU21217 Truong Duc Hieu – IELSIU21200 Le Phu Huy – IELSIU21095 Ho Chi Minh City, Vietnam JULY/2022 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF INDUSTRIAL ENGINEERING & MANAGEMENT INTRODUCTION TO LOGISTICS AND SUPPLY CHAIN MANAGEMENT COLD STORAGE WAREHOUSE SIMULATION – A CASE FOR FRUIT PRODUCTS Group : 12 Advisor : Assoc. Ho Thi Thu Hoa Student Name & ID : Nguyen Thi Ngoc Han – IELSIU21195 Dinh Thuy Nguyen – IELSIU21217 Truong Duc Hieu – IELSIU21200 Le Phu Huy – IELSIU21095 Ho Chi Minh City, Vietnam JULY/2022 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 ACKNOWLEDGEMENT Many people have contributed to the success of our result. We would like to offer a special appreciation to them.
Our group cannot express enough thanks to our advisor for her support and encouragement: Assoc. Ho Thi Thu Hoa, who has provided us a deeper understanding about our project and given us some valuable advices to complete our work. From the deep of our hearts, we offer our sincere appreciation for the learning opportunities provided by my dearest advisor. We are grateful to Dr.
Nguyen Van Hop, as well as all the lecturers and teaching assistants from Industrial Engineering Management , for organizing this course and providing us a clearer vision about our major. Besides, our completion of this project could not have been accomplished without our teaching assistants, Mr. Hoa, and Ms Chi for helping us with technological problems. I|Page Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 ABSTRACT Starting in 1996, commercial cold storage in Vietnam was first built by Konoike Vinatrans, a joint venture between Konoike Transport (Japan) and three Vietnamese enterprises including Vinatrans, Vinalink, and Vinafreight.
In 2007, the cold storage market exploded with the appearance of four new cold storage. Since then, Vietnam's cold storage market has become attractive to both domestic and foreign cold storage suppliers, especially at a time when Covid 19 is still affecting goods. Cold storage warehouse plays a key role in developing Vietnam's agriculture and in bringing clean goods to consumers. Therefore, this study will describe the operation of cold storage and analyze the data related to this issue.
To answer the research question, our team ran a test and compared the metrics from different test runs. At the same time, we compared the role of cold storage warehouse in the supply of commodities between the two periods of pre-pandemic and post-pandemic of Covid 19. Our research has shown an important contribution of cold storage to export goods during the raging Covid 19 Pandemic. We suggest that cold storage should be focused on and developed further by investors because the demand for preservation is increasing not only for agricultural products but also for other essential commodities such as seafood and vaccines that need to be protected under special temperature conditions II | P a g e Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 TABLE OF CONTENTS ACKNOWLEDGEMENT.
II LIST OF FIGURES. V LIST OF TABLES. VII CHAPTER 1 - INTRODUCTION. Scope and limitations.
2 CHAPTER 2 - SYSTEM DESCRIPTION. 21 III | P a g e Downloaded by mon hon (monmon1@gmail. 29 CHAPTER 3 - SOLUTION DEVELOPMENT. Case 1: Before COVID-19 pandemic.
Cases 2: During COVID-19 pandemic. C IV | P a g e Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 LIST OF FIGURES Figure 2. 1: Process for receiving and delivering of Luc Ngan Lychee products. 2: General flowchart of cold storage warehouse.
3: Detail flowchart of cold storage warehouse. 4: Inbound of Luc Ngan Lychee in cold storage warehouse. 5: Outbound of Luc Ngan Lychee in cold storage warehouse. 9: Arena model part 1.
10:Arena model part 2. 11: Arena model part 3. 12: Arena model part 4. 13: : Arena model part 5.
14: : Arena model part 6. 16: The model has 1 forklift with velocity 75 feet per minute. 17: Waiting time with 1 forklift - speed 75 feet per minute. 18: The model has 2 forklifts, each has a velocity of 75 feet per minute.
19: Waiting time with 2 forklifts - speed 75 feet per minute. 20: The model has 3 warehouse staff positions, each of position has 1 staff. 23 V|Page Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 Figure 2. 21: Waiting time with 1 staff in each position in three processes.
22: The model has 3 warehouse staff positions, each of position has 2 staffs. 23: Waiting time with 2 staffs in each position in three processes. 24: Run Setup with 10 replications. 25: Waiting time after 10 replications.
26: Run Setup with 76 replications. 27: Waiting time results after 76 replications. 1: Average monthly consumption of fruits per capita in Vietnam from 2010 to 2020 (in kilograms). 2: : The money spent on vegetables and fruits in traditional markets(Department of Growth - Ministry of Agriculture and Rural Development).
3: The percentage of money spent annually on particular food(Department of Growth - Ministry of Agriculture and Rural Development). 4: Shrinkage based on some food(Environment Agency). 5: Capacity of commercial cold storage suppliers in Vietnam(Stopple’s statistics). 7: Congestion of trucks at the border gate(Source: Nguoi Lao Dong).
41 VI | P a g e Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 LIST OF TABLES Table 2. 3: Data from the material. 4: Distribution of problem process. 5: Data type of create modules.
6: The average waiting time of processes. 7: The average waiting time of processes by process analyzer tool. 8: The mean value and the sample standard deviation in simulation. 9: Table of values based on the test statistics.
10: Table of resource utilizations by using the process analyzer. 34 VII | P a g e Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 CHAPTER 1 - INTRODUCTION 1. Rationale Cold storage warehouse is used to preserve and expand the period of usability of perishable products. Several import-export companies such as Homefarm, V-food Vietnam, Fuji Fruit, and others are utilizing cold storage warehouses to safeguard their products until they are marketed Vietnam is a potential market to develop cold storage for both domestic and foreign investors.2 Problem statement According to the World Cold Chain Summit in March 2018 in Ho Chi Minh City, Vietnam loses about 7 million tons of fruits and vegetables during storage and transportation yearly.
Fruits and vegetables account for 31% which is the largest share of wasted food products. Of which 26% came from damage due to improper storage, much higher than the Southeast Asian with an average of 15%. In addition, cold storage is also one of the most effective solutions for the logistics industry when products are being congested at border gates due to the situation of the Covid-19 epidemic. Thus, Vietnam needs to invest in the infrastructure to store fruits and vegetables appropriately.
To make the simulation become closer to reality, our group took the Luc Ngan lychee as the sample product. The annual consumption of lychee is between 60 and 70 percent in the domestic market; meanwhile, Luc Ngan lychee accounts for 30-40% of the total fresh lychee consumed in the domestic market, especially in Ho Chi Minh City and Ha Noi Capital. The market in the south has enormous potential, but it is limited in terms of preservation, so it can only consume 10-15% of the output. Without a cold storage warehouse with appropriate conditions, the quality and quantity of lychee could be seriously reduced and then caused significant economic 1|Page Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 losses.
Objective The target of this cold storage warehouse: In this project, we will utilize Flexsim and Arena to visualize the road of transporting process to Ho Chi Minh City and create a cold storage warehouse for fruits, respectively. To make the simulation become closer to reality, our group took the Luc Ngan lychee from Bac Giang province as the sample product. The performance has an input and releases an output. Thanks to simulation, we can adjust, decide, and manage this system as we desire to observe the results without affecting any real systems.
Animations are built in the simulation to illustrate the system operation livelier. Scope and limitations 1. Scope The cold storage warehouse for fruits would focus on the Ho Chi Minh City because of the crowded population and the high consumption ability. Limitations Although our group received an appropriate result as our expectation, there are some obstacles and limitations preventing us from building and analyzing the model.
Time limitation is the most serious obstacle. Due to the lack of specialized knowledge, our group spent most of the time searching for study materials and data. Besides, at the first period, it was difficult for us to understand technical knowledge about simulation, which takes quite a lot of time. Therefore, our group had struggled with scheduling the time to finish our model.
2|Page Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 CHAPTER 2 - SYSTEM DESCRIPTION 2. General in-out Our group built the process of carrying and storing commodities, which are the Luc Ngan lychees from Bac Giang particularly, to cold storage warehouse in Ho Chi Minh City where the lychees are consumed most domestically. Firstly, Luc Ngan District (located in Bac Giang Province) is the place that needs to transport the lychee into Ho Chi Minh City. Next, after being harvested and preliminary treated, the lychees are put into foam boxes, marinated with ice and packaged seriously.Then, these boxes of lychee are loaded to trucks and delivered to Ho Chi Minh City.
Then, trucks delivery them from 1 to 3 days to cold storage warehouses, which has the temperature ranging from 4 to 5 Celsius degrees. Finally, based on orders that suppliers have already had, goods are shipped to the modern trade channel including supermarkets and minimarts in Ho Chi Minh City. The process of transporting and consuming Luc Ngan lychees is depicted in Figure 2. This process is divided into 2 parts.
Part 1 is to transport lychee to cold storage warehouse for storage purposes. Part 2 is the process of transporting goods for consumption at supermarkets in Ho Chi Minh City. 3|Page Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 Figure 2. 1: Process for receiving and delivering of Luc Ngan Lychee products 2.
General flowchart When the cold storage warehouse receives goods from truck, the staff will unload, detect for damage, compare with the purchasing orders (PO), and then sort the goods based on the criteria for each type. After that, the cold storage warehouse will provide forklifts for moving the goods into storage area. After 1-2 weeks, the goods will be moved to the staging area from the storage area to prepare for orders. Then the goods will be labelled and loaded to the truck to transport to the customers.2 shows the steps of transporting and storing lychee in a general way in the cold storage warehouse.
4|Page Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 Figure 2. 2: General flowchart of cold storage warehouse 2. Detail flowchart From the general flowchart in Figure 2.2, the detailed flowchart of the process from truck arrives to truck leaves out of cold storage warehouse is shown in Figure 2. 5|Page Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 Figure 2.
3: Detail flowchart of cold storage warehouse INBOUND: When goods are transported by containers to cold storage warehouse, the container will be assigned to a suitable location in preparation for unloading.