Conference Proceedings

An Investigation of Sequential Sampling Method for Crossdocking Simulation Output Variance Reduction

Adrian Adewunmi, Uwe Aickelin, Mike Byrne

Proceedings of the 2008 Operational Research Society 4th Simulation Workshop (SW08) | Operational Research Society | Published : 2008

Abstract

This paper investigates the reduction of variance associated with a simulation output performance measure, using the Sequential Sampling method while applying minimum simulation replications, for a class of JIT (Just in Time) warehousing system called crossdocking. We initially used the Sequential Sampling method to attain a desired 95% confidence interval half width of ± 0.5 for our chosen performance measure (Total usage cost, given the mean maximum level of £157,000 and a mean minimum level of £149,000). From our results, we achieved a 95% confidence interval half width of ± 2.8 for our chosen performance measure (Total usage cost, with an average mean value of £115,000). However, the Seq..

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