Chapter 10Warehouse LayoutLaying out a warehouse is like putting together a jigsaw puzzle all the pieces have to be defined & assembled

Defining the pieces is the purpose of: benchmarking, profiling, simplification, computerizing, and mechanizing the warehouse

Chapter 10Warehouse Layout5-STEP METHODOLOGY FOR WAREHOUSE LAYOUT

Required Inputs: warehouse activity profile performance goals for whse operations definition & configuration of warehouse processes configuration of material handling & storage systems

Chapter 10Warehouse LayoutSTEP 1: SPACE REQUIREMENTS PLANNING(determine overall space requirements)

Compute & Summarize Space requirements for each process:

ProcessFloor Space (sq ft)NotesReceiving Staging30,000Assume 80% utilizationPallet Storage120,000@ peak inventoryCase Picking25,000Broken Case Picking15,000

Chapter 10Warehouse LayoutSTEP 1: SPACE REQUIREMENTS PLANNING(determine overall space requirements)

Compute & Summarize Space requirements (continued):

ProcessFloor Space (sq ft)NotesPackaging/Unitizing15,000Customizing20,000Assume 20% growth in VASAccumulation/Sortation30,000Shipping staging30,000

Chapter 10Warehouse LayoutSTEP 1: SPACE REQUIREMENTS PLANNING(determine overall space requirements)

ProcessFloor Space (sq ft)NotesCross Docking15,000Warehouse Offices15,000Restrooms5,000Shipping staging30,000Subtotal320,000Interactive aisle64,000@ 20% of subtotalTOTAL384,000

Chapter 10Warehouse LayoutMost difficult decision is what portion of peak storage requirement to accommodate. if duration is short i.e.; ratio of Peak:Average is high Temporary space (outside the warehouse) should be considered if the duration is long i.e.; ratio of Peak:Average is low Warehouse should be sized very near peak requirements

Chapter 10Warehouse LayoutAnother important consideration:

Portion of warehouse locations that will be occupied

As utilization reaches 85 90% -- productivity and safety decline dramatically

Chapter 10Warehouse Layout2nd Step Material Flow PlanningU-shaped Straight Thru Modular U-shaped Flow:

Chapter 10Warehouse Layout U-Shaped Flow Advantages:Excellent dock utilizationFacilitates cross-dockingExcellent fork truck utilizationEnables 3 direction expansionExcellent securityIs the benchmark for flow analysis

Chapter 10Warehouse LayoutStraightThru Flow

RCVGSTORSELECTSHIP

Chapter 10Warehouse LayoutStraightThru Flow

Lends itself to pure CROSS-DOCKINGwhen rcvg time & shpg times coincide

Disadvantage: difficult to use ABC storage & dual command trips

Chapter 10Warehouse LayoutMODULAR-SPINE DESIGN

Good for large scale operations where operations are so large they merit stand-alone, uniquely designed buildingsl.E.: a low-bay air conditioned building for customized operations such as monogramming, pricing, & marking;Plus a rack supported building for a unit-load AS/RS; or a low-bay shipping building equipped with high speed sortation equipment.

Good approach for grocery distributors (modules are dedicated to specific order flows and/or item popularity designations.

Chapter 10Warehouse LayoutMULTI-STORY LAYOUT

Employed where land is scarce: like Japan or Europe least desirable of layout designs significant material handling challenges bottleneck form in the flow

Chapter 10Warehouse LayoutADJACENT PLANNING: ie:

Receiving & Reserve StorageCross-docking & ShippingCase Picking & Pallet StorageCase Picking & Broken Case PickingPicking & CustomizationCustomization & Unitizing

Chapter 10Warehouse LayoutWarehouse Activity Relationship Chart:

Supervision Safety Material Flow Work Flow Material control Equipment Proximity Shared Space Employee Health & SafetySecurityAbsolutely necessaryEspecially ImportantImportantOrdinary ClosenessUnimportantX. Undesirable

Chapter 10Warehouse LayoutPROCESS LOCATION:High storage requirements use high bay areas &Labor intensive processes go in low bay space:ReceivingBroken case pickingCustomizationReturns ProcessingHigh bays can be mezzanined to create multiple low-bay processes on the same foot print.

Chapter 10Warehouse LayoutEXPANSION & CONTRACTION PLANSRequirements change &Larger & smallerFaster & slowerMore & less varietyTaller & shorterMore & fewer peopleMore & less technologyThis requires careful configuration layout to include expansion & contraction plans for each warehouse area