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SIMUL8 February Online User Group - How Kroger user SIMUL8

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Information about SIMUL8 February Online User Group - How Kroger user SIMUL8
Technology

Published on February 27, 2014

Author: SIMUL8

Source: slideshare.net

Description

Our Online User Groups are a great opportunity to share ideas, learn, and connect with other users and the SIMUL8 team.

For our February Online User Group we were delighted to be joined by SIMUL8 expert, Jim Holtman from Kroger - a SIMUL8 user of 20 years, and Matthew Hobson-Rohrer and Glenn Holburn from the SIMUL8 team.

During this presentation Jim Holtman from Kroger talks us through how various processes are simulated using SIMUL8 at The Kroger Co, including the check out areas, distribution centers and the loading/delivery areas. The presentation also includes a demonstration of one simulation that was developed to help people understand how some of Kroger's operations work.
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SIMUL8 at The Kroger Company

The Kroger Co. • • • • • • • Largest traditional grocery retailer in the United States 343,000 associates 2424 stores 1169 supermarket fuel centers 786 convenience stores 328 fine jewelry stores Kroger is the fifth-largest pharmacy operator in the United States (when counting the number of locations), and in 2012 Kroger pharmacists: – – • • 40 manufacturing plants 34 distribution centers – • Filled over 162 million prescriptions Retail value of approximately $8 billion. Traveled 300M miles in 2010 Loyalty cards – – Created partnership in May 2003 with a firm called dunnhumby Partnership called dunnhumbyUSA 2

Use of SIMUL8 • Kroger wants to model before building a solution. • Been using SIMUL8 since 2006 – “Front-end” (cashier utilization) – Manufacturing (dairy plant) – Loading docks (putting pallets on trucks) – Picking products in a warehouse – Tool for training

Front-End at a Store • Model the type of cashier lane – – – – Regular Express SCO (self checkout) “Scan Tunnel” (http://www.bizjournals.com/cincinnati/blog/2011/08/testingout-krogers-new-tunnel-scanner.html?page=all) • Vary customer load/arrival rates – – – – – By 15 minute intervals Size of basket Type of payment Number of coupons …

Screen Shot of Front-End 5

QueVision • Reduces customer wait time to 30 seconds – http://www.popsci.com/technology/article/201305/what-does-military-camera-have-do-groceryshopping?dom=PSC&loc=recent&lnk=1&con=rea d-full-story – Use of this technology driven from observing the output from the SIMUL8 model if we could be proactive in opening up lanes based on predicted customer arrival rate.

QueVision

Use in Training Courses • I teach several courses at Kroger. One of them is “Working the Numbers” to show the importance to developers of understanding the numbers associated with their applications. • Knowing how queuing affects the throughput/response times is illustrated with several SIMUL8 models.

Queueing • Simple model of a cashier lane:

Little More Complex Model • Larger store operation:

Simple Automated Warehouse Video

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