Design and layout of a warehouse

Reference no: EM132283633

A WAREHOUSE PLANNING/DESIGN PROJECT - Logistics design Project

The Kepko Manufacturing Company is planning to build a modern (small) warehouse in North Jackson, Ohio. Recent long-term sales agreement with 3 large companies in the North East Ohio Area has prompted the company to build and operate such a warehouse to ensure that the company will be able to make prompt and on-time deliveries to the three customers. The warehouse will be used to store the following 8 items. (see table 1 in attached file).

Incoming material will be delivered to the proposed warehouse by standard trailer trucks from the two suppliers in New York and Charlotte NC. The warehouse after quality control and repacking will distribute the products, on a daily basis, to the major customers located in the following three general areas (see Figure 1 in attached file). Note that the warehouse is designed to serve only these 3 areas and for now it is assumed that the primary function of the warehouse will be limited to serve only these clients.

a) Sharon, PA and area within a radius of 20 miles from the center of the city.

b) Several small companies (customers) in Twinsburg Ohio and surrounding area

c) Several mid-size companies near Salem Ohio (and area within 25 miles) which includes southern part of Mahoning County.

The company has provided the following preliminary information about the type of storage/distribution system they plan to build and planned flow of material into and out of warehouse.

1) Material are shipped and received daily as follows:

a) Shipping to customers is scheduled 6:00 am to 3 pm

b) Receiving from suppliers is usually on a random basis between 5am and 2:00pm.

2) The warehouse operates 5:00 am to 4:00pm, 6 days a week.

3) Trucks used by the suppliers on average are 42' x 8.5' x 11' (L x W x H). Note that you can load a truck only for a height of 9'. (A 2' allowance for picking the top pallet/load on a stack).

4) The size of the trucks for fast delivery to customers must be decided by the design Engineers.

5) The time the material stays in inventory (shown in table 1) are rounded to the nearest number of days.

The Company has decided on two possible sites near interstate Route76. The area was recently converted to industrial park. The company is expected to finalize the site selection process in a few months. To expedite the project, they recently hired your facilities design team to develop detailed layout and design the warehouse unit. Specifically, they want you to determine the following and submit a comprehensive report on your findings/recommendations.

1. Location of the facility with the objective of minimizing the transportation cost.

2. Size of the warehouse which will accommodate storage requirements at least for the next 10 years. The Company expects only a moderate increase (about 2.5% per year) in storage capacity requirement during the next 10 years.

3) The best storage arrangement for the six items in the table. The optimum arrangement is expected to minimize material handling cost. In preparing the layout, assume 12 ft aisle space is needed along with clearance of 3" between stacks, and one-foot overhead. It is desirable to use a modern rack system (1-3 high). Note that we need a clearance of 6'' for rack supports.

4) Number of lift trucks (or other form of handling equipment required).

5) Storage dimensions, layout and cost of the system. (based of the # of Operators, Racks, ...needed).

6) Number and location(s) of shipping/receiving docks. A time study of loading and unloading time required per shipping/receiving will be conducted and result reported to the facilities design engineers.

7) Other information will be provided later.

8) The size and number of trucks that the warehouse should use to accommodate daily fast delivery to the customers at minimum time and cost, The type, size and routing of the trucks will be decided by the design engineers.

WHAT IS REQUIRED -

1 - Design and layout of a warehouse that will satisfy the current and possibly future demand. Determine the geometry, dimensions, and all requirements for a modern warehouse/logistic system. Note that a review of the historical data shows an average increase of 2.5% in demand for the above 10 products, and he trend is expected to continue for the next 10 to '15 years.

2 - Determine the number and type/sizes of small trucks the company need to purchase for delivering material on a daily basis, to the customers.

3 - Determine Number and skill level of workers required for the facility.

4 - Determine type and number of material handling equipment needed for warehouse operations (i.e., unloading, loading, moving material,).

Design/recommend Management system for the warehouse. Type and number of docks required. Designing staging, receiving and shipping areas and operation procedures for those areas.
Determine sizes and layout of the total facility (inside and outside) preferably based on current industry standards for this type of storage facilities.
Develop an optimal delivery schedule/system to the customers.

Warehouse design Project Schedule of activities -

Step 1: Becoming familiar with the project and what is the objective. Designing a Set of appropriate unit Loads.

Step 2: Determining FT² area needed for storage only. This requires determining or if not possible assuming the followings:

Develop type and dimension of the Unit Loads
Determining number of units loads of each type (to be stored, moved,)
Determining how different products will be assigned to unit loads
Determining Average, Maximum, number of days each stock will/should stay in Inventory.
How to store the unit loads in warehouse (random, selective,)

Step 2: Analysis of inflow of material (how, when, frequency) into warehouse from Internal and external suppliers, and from warehouses to customers.

Examine alternative size trucks - how many trucks required, Determine (rough) delivery schedules. In doing so, we have to determine whether to use dedicated truck-loads for each customer or utilize a Transshipment type flow network (Routing Policies?)

Step 3: Determining size of the warehouse and number/dimensions of the internal and external components of the warehouse building including.

Determining total ft² of area required to store the inventory.

Step 5: Storage policies and patterns, Layout of the Warehouse

Determine storage pattern (how many high, storage policy. Type and number of racks, shelves, and so on.
Type and number of material handling equipment (hand truck, Lift truck,) for inside the warehouse.
Layout of the warehouse, offices and other areas.

Step 6: Planning the space, parking, layout and other outside Layout of features of the warehouse

Step 7: Developing the warehouse management/Operating system and financial Analysis/justification of the warehouse, and Preparing the Final (Project) Report.

Step 8: Preparing the final report and presentation.

Attachment:- Assignment Files.rar

Reference no: EM132283633

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Reviews

len2283633

4/15/2019 2:34:27 AM

Instructions: Main file is design project pdf files. there is 10 items from A to J . For step 1 and step 2 we need to look step1 and step2 pdf files for what need to do . For all other steps we need to follow design project pdf file activities. step 1, Developing unit loads (pallet sizes, determining # of loads coming in b)- step 2. Determining # of docks and dimensions of the receiving/shipping area c)- step 3&4, developing (rough estimate) the total area of the distribution center d)- step 5, Adding the service area and layout of storage area, ...... e) step 6. Determining # of lift trucks and type and number of shipping truck f)- step 7. Develop the layout and distribution network (for routing the tucks). g)- Final step. Developing outside rough layout. Final Project report.

4/15/2019 2:34:19 AM

NOTES AND DISCUSIONS - The following lecture notes and instructions (see Chapter 10 of the textbook) are developed to assist the warehouse designers in better understanding and applications of design methods. The lecture notes include: Activities list - The list and schedule of all activities/steps involved in the Planning and design of this project. Lecture Note 1: Unit Load analysis and determining Input/output in “Number of pallets. (Unit load/Box design is taken out in this project). Lecture Note 2: Determining number of docks and material handling equipment. Lecture Note 3: Warehouse Space Planning. Lecture Note 4: Warehouse Location Analysis. Lecture Note 5: Sample warehouse space planning and layout. Design Instruction set 1: Discussion on specific design problem, part I and Design Instruction set 2: Discussion on specific design problems, part II.

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