Ground-based delivery companies often rely on a network of terminals and hubs to move packages throughout the country. Most of the hubs are located in major cities with hundreds of terminals located in smaller cities. A conveyor system is used to unload, sort and transport packages throughout the hub. Due to the enormous size of hub facilities, some containing 8 miles of conveyor, each is built in phases. Each phase typically adds a copy of the original and ties into the existing conveyor system. The same core processes typically are found in each hub with some site-specific variations: the unload area, primary sorter, and secondary sorter. This paper discusses an analysis of a typical hub expansion to determine if equipment and resources are being used efficiently and to identify possibilities for reducing the cost of capital equipment. Simulation is the primary tool used to carry out the analysis.
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