Warehouse Planning And Logistics Design Project

1a Warehouse Planningdesign Projectlogistics Design Projectdue Date

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 the trend is expected to continue for the next 10 to 15 years.

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

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

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).

Paper For Above instruction

In this comprehensive analysis, the primary goal is to design a modern, efficient warehouse that caters to current and projected demand while optimizing cost, space, and operational efficiency. The process begins with a thorough understanding of the company's future growth expectations, which anticipate an annual increase of 2.5% in demand over the next decade or more. This growth forecast guides the determination of the warehouse's total storage capacity, ensuring it remains scalable and flexible for future needs.

Location Selection: The optimal site is critical for minimizing transportation costs and enhancing delivery responsiveness. Two potential sites near Interstate Route 76 are considered, and the decision involves analyzing proximity to major customer areas, supplier access, transportation infrastructure, land costs, and future expansion potential. A location analysis employing Geographic Information Systems (GIS) can identify the site that minimizes total transportation costs, considering inbound freight from suppliers in New York and Charlotte and outbound deliveries to three key customer zones: Sharon, PA; Twinsburg, Ohio; and Salem, Ohio. The selection process incorporates evaluating distance-based transportation costs, traffic congestion, ease of access, and regional growth prospects.

Warehouse Size and Layout Design: Based on the projected demand and storage needs, the warehouse's footprint is calculated. This includes space for upper-bound volume, future growth, aisles, staging areas, receiving docks, shipping docks, office facilities, and auxiliary spaces such as equipment maintenance and reject storage. A detailed space planning model incorporates the following parameters:

• Stacking height considerations for high-density storage systems, such as modern pallet racks, with a typical height of 12 feet, accounting for aisle clearance, overhead clearance, and rack support space.
• Aisle widths of 12 feet for efficient forklifts maneuvering, with a clearance of 3 inches between stacks and an overhead clearance of one foot, aligning with industry standards.
• Storage configuration employs a mix of pallet racks, possibly high-bay racks, to maximize vertical space utilization, with the type of racks selected based on product shape and weight.
• Forecasting storage capacity for each product line incorporates weathering factors like reject rates (~2.5%) and planned inventory turnover days.

Material Handling Equipment and Operations: An analysis of material flow determines the number and type of handling equipment required, including forklifts (lift trucks), pallet jacks, and conveyors. Calculation of handling cycle times, considering inbound and outbound freight, loading/unloading durations, and stacking/retrieval procedures, informs equipment fleet sizing. For instance, the truck arrival times (ranging from 5:00 to 2:00) are synchronized with warehouse operation schedules, facilitating continuous flow. The pallet size, typically a standard 6-foot-high load with 18 boxes, influences equipment types and capacity planning.

Transportation and Delivery System Design: The daily delivery schedule involves identifying the optimal fleet composition—number and size of delivery trucks—to achieve timely deliveries while minimizing costs. The design considers different truck configurations, such as 42-foot trailers, with height restrictions (9-foot load height allowance). Routing policies leverage geographic and traffic data to optimize delivery routes. The selection between dedicated trucks per customer versus transshipment networks depends on demand consistency and cost analysis. The routes aim to reduce handling times and fuel costs while ensuring high service levels, especially for time-sensitive deliveries in Sharon, Twinsburg, and Salem areas.

Workforce Planning: Workforce requirements encompass skilled operators for handling equipment, warehouse staff for packing, quality control, and administrative roles. The number of workers is derived from analyses of handling times, shift scheduling, and operational hours. For example, the time study indicates that unloading and loading operations take an average of 56 minutes per truck, with additional preparation and documentation time. Adequate staffing levels are essential to maintain smooth operations without delays.

Management System and Layout: Implementing an effective warehouse management system (WMS) is critical for tracking inventory, optimizing storage positions, and scheduling shipments. The layout emphasizes well-organized receiving and shipping docks, with clearly designated staging areas. The number of docks is calculated based on processing throughput rates and handling capacity, ensuring minimal waiting times and high throughput. The management system facilitates real-time inventory updates, simplifies order picking, and enhances responsiveness to customer demands.

Cost Estimation and Justification: The overall design includes a cost-benefit analysis comparing different layout options, equipment selections, and site locations. Capital expenditure estimates cover land acquisition, construction, shelving systems, handling equipment, and labor. Operating costs encompass inbound/outbound transportation, labor, maintenance, and utility expenses. The economic justification demonstrates how the proposed warehouse optimizes throughput, reduces transportation and handling costs, and supports long-term growth.

In conclusion, this comprehensive warehouse design integrates strategic site selection, scalable space planning, efficient material handling, and sophisticated management systems to ensure operational excellence. The model provides a foundation for future expansion and adaptation, aligned with industry best practices and analytical insights, to support Kepko Manufacturing Company’s growth and customer service objectives.

References

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