Inbound Logistics Optimizing Using Six Sigma And Simulation Modeling

The Fast-Moving Consumer Goods (FMCG) industry is highly competitive, requiring efficient and responsive warehouse operations. This study focuses on optimizing the inbound operations of one of Saudi Arabia's leading FMCG companies, using Six Sigma methodology and simulation modeling. The DMAIC framework was applied alongside key Six Sigma tools to identify inefficiencies and operational waste. A discrete simulation model was used to develop the current base and proposed models, enabling the identification of bottlenecks and evaluation of improvement scenarios. Two key performance indicators: Cost Per Pallet (CPP) and Receipt Processing Time (RPT) were used to assess performance. The proposed improvements achieved a 15% reduction in CPP and a 14% decrease in RPT, significantly enhancing warehouse efficiency. Additionally, a new warehouse layout was proposed to further streamline inbound operations and reduce waste.