I want to run a site workflow every week and have it create a folder and copy all the items from one library into the folder.
we need a weekly archive of all the documents.
To archive documents, it's maybe easier to use the content organiser of SharePoint. Every week you could execute a workflow which would move the documents to the drop off Library using "Send document to repository" action. Then the content organiser would move the document to the right Library/folder depending on the rules.
Hope this helps
You can see this reference: create folder with nested subfolders
Create folder and sub folders for every new item
Hope it helps.
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