Need Help on urgent

1

A WAREHOUSE PLANNING/DESIGN PROJECT

Logistics design Project

Due Date: This project is due .... (TBD)

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)

Table 1

Item➔ A B C D E F G H I J

Received per day 480 920 730 440 500 670 1050 1240 2800 2500

L 20 20 45 ,42 42 42 45 45 20 20

Box (inch)*. W 15 15 24 20 20 20 24 24 15 15

H 12 12 16 32 32 32 16 16 12 12

Weight (lbs.). 0.85 1.12 1.95 2.28 1.72 3.20 3.35 2.90 0.55 0.42

Days in Inventory 1-2 1-3 2-4 3-4 1-3 2-3 1-3 2-4 2-4 3-4

Product Shape ➔ R**. R R R C**. R. R . C R. R

# of products/Box* 12 10 6 6 8 10 9 12 20 24

*. See last page

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). 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}.

* See figure 1 last page

R** is used for rectangular shape. C** is used for cylindrical shape

2

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

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.

Figure 1, Supple and distribution network

Supplier #1

Customer New York

Area #2

Customer

Area #1

Customer

Area #3 Charlotte

N. Carolina

Project Data

1)-Location Information

Customers/distribution area #1 #2 #3

Assumed center of gravity Twinsburg Sharon Salem

OH PA OH

Warehouse

4

2)-Supply and demand data

Product Code/ % from supplier % shipped to customer

Type SKU # # 1 #2 #1 #2 #3

--------- ---------- ----------- ------------ --------- -------- ----------

A med119 100 - 35 28 37

B med 228 40 60 45 - 55

C med337 100 - 78 22

D meq432 100 - 100 - -

E meq543 - 100 30 55 15

F heq998 100 0 - 100 -

G heq990 100 0 42 58

H meq556 - 100 47 - 53

I med449 100 - - - 100

J med665 30 70 60 40 -

2- Loading/Unloading Times

The time between when a truck arrives and when it leaves the shipping/receiving

are (completing pick up or delivery), is divided into 3 components as follows:

Component duration in minutes Comments

----------------------------- --------------------------- ------------------------------ Waiting 22- 50 Observed mean= 32 min.

Reporting to shipping/ 8-19 Observed mean = 11 min

Office, Paperwork, 8-12. Observed mean = 10 min

Loading or unloading 41- 85 Observed mean = 56 min

3-Data on rejects and spoilage

A)- All of the incoming material are planned to be processed and within a few days

(see Table 1) shipped to customers. However, historical data indicates that about

2.5% of incoming material (those rejected because of damage and quality problem)

5

stay in the warehouse for an average of 2 months, this is because the rejected

material are scheduled to be shipped out on a bimonthly basis.

B)- Type and sizes of pallets to be used in transportation, handling and storage of

the products must 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.

-Others……………. (will be discussed in classroom)

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

6

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

Design Instruction set 2: Discussion on specific design problems, part II

Warehouse design Project Schedule of activities

Should be

LIST OF ACTIVITIES completed by:

Step 1: Becoming familiar with the project and what is the objective.

Designing a Set of appropriate unit Loads. (This part is eliminated By….TBD

In this project to save time)

Step 2: Determining FT2 area needed for storage only. This requires

determining or if not possible assuming the followings: By…TBD

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 (10) . How to store the unit loads in warehouse (random, selective,)

7

LIST OF ACTIVITIES completed by:

Step 2: Analysis of inflow of material (how, when, frequency) into

warehouse from Internal and external suppliers, and from

warehouses to customers. By…

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. By………

Determining total ft2 of area required to store the inventory (2) # of Receiving and Shipping docks # and ft2 area for staging operations # and sizes of processing areas Ft2 office space needed Ft2 area for rejects, equipment maintenance, and other functions Aisle Space required Area for future expansion and others

Step 5: Storage policies and patterns, Layout of the Warehouse (3) By……

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 By……..

Step 7: Developing the warehouse management/Operating

system and financial Analysis/justification of the

warehouse, and Preparing the Final (Project) Report By ……..

Step 8: Preparing the final report and presentation By……..

(1) This decision is made by company management. It is a company policy.

(2) This item and step 5storage policies and patterns. Layout of the Warehouse (3)

should be done simultaneously.

8

Figure 1: Pictures of pallet loads &

Lift Truck carrying the loads

A)-Pallets Load:

Standard pallet (6” high/thick)

(Note: There are 18 boxes in this pallet-load)

B)- Lift Truck moving Pallet-loads