Submitted for publication to IIE Transactions (In Revision)

The aim of this paper is to introduce a framework of model elements and associated computation methods which are well suited to model information flow and physical processes in warehouses and distribution centers. The proposed elements, the so called stochastic finite elements, are based on a discrete representation of time, in order to render distribution assumptions unnecessary. We extend available discrete time queueing models by adding models for batch processes, which are very common in material handling systems, when goods are transported or processed in some steps in batches or in some other steps piecewise.