Sneaky Sneakers
Existing Conditions
Company Profile
Sneaky Sneakers (SS) is a retailer that sells
athletic shoes in it own stores. It currently
operates 500 stores that are located primarily in
shopping malls. They have recently opened their
website and are now selling shoes directly to
consumers. They have outgrown their current
facilities, and they need to design a new
distribution center that will be able to handle their
retail and internet business in the same facility.
Facility Description
Sneaky Sneakers has found a property for their new
distribution center. This 200,000 square foot existing
facility features 32’-0” available clear stacking height
to the top of the top load (including clearances
required for overhead sprinklers). SS would have to
sign a 5 year lease on the facility. The facility lease
cost is $4/square foot/year. The landlord will allow
SS to lease the space they will require for their
operation. Any unused space by SS may be leased
to another party and will not be available to SS after
that.
Empty Facility Space
QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
Typical Bay is 55’-0” x 44’-6”
Operational Details
Sneaky Sneakers has a warehouse where they house their
current operations. This warehouse is approximately 75,000
square feet. Cases are received floor-stacked in containers
from overseas. Pallets are built manually on the receiving dock
and then moved to storage. All product is stored in pallet lanes.
Not all pallets are stored in this facility. SS uses another remote
warehouse to store overflow pallets. Pallets from the overflow
warehouse arrive already palletized. Cases are picked from
pallets on the floor to complete orders. Manual pallet jacks are
used to travel the warehouse and build orders. Completed
pallets are moved to the shipping dock where they are stretchwrapped and paperwork is generated. Pallets are then shipped
via LTL carriers to the retail stores.
Future Conditions
Future Conditions
The current operation supports 500 retail stores. A store
normally receives a replenishment order every 2 weeks. A
normal replenishment order is 5 pallets and consists of mixed
SKUs on all pallets. SS plans on adding an additional 75 stores
per year for the next few years. SS’s new internet-catalog
business is just taking off as well. They currently offer 100
SKUs to their online customers. The are fulfilling 250
orders/day out of their online business. They hope to grow this
area of their business at 20% per year and expand their online
catalog to include all of their SKUs (approximately 2000).
Returns
SS Management anticipates Returns
becoming a significant operation with the
expansion of their internet-catalog
business. It is anticipated that anywhere
from 3% to 15% of all orders will be
returned. SS needs to have a work area
designed that will allow for the quick and
efficient processing of a returned
merchandise, and with flexibility to handle
the high or the low end of the returns rate.
Product Information
– Cartons range in size from 16”x12”x8” (48 cartons/pallet) to
28”x18”x12” (16 cartons per pallet)
– Pallets hold approximately 50 cubic feet of product
– Current operations have been found to have insufficient
receiving and shipping staging. On peak days, pallets from
both docks clog up the aisles in the storage/picking area.
– Damage of cartons is currently a major problem.
– All product is received in cartons. The retail replenishment
business does not require the breaking of the full cases.
The new internet business has required that pickers open a
case up to remove one pair of shoes to fill an order.
Operational Details
• A one shift operation is now in place. SS hope to maintain this
in the future.
• Receiving occurs between 8:00am and 11:30 am.
• Large inventory items are stored in bulk floor lanes (average 2.5
pallets high).
• Most SKUs have picking locations on the floor that can be
accessed by pickers. Some SKUs require pallet juggling to
complete orders.
• Carriers arrive between 2pm and 4:30pm daily. On an average
day, approximately 1/2 of the staged product is shipped. The
average stay for a case on the shipping dock is 1.8 days.
Operational Data
Operational Data
There has been some limited analysis of
the current state of Sneaky Sneaker’s
operation. The following data reports
have been made available for your use:
•
•
•
•
Receiving Log - Last 3 weeks
Inventory Profile - Peak inventory level
Shipping Profile - Peak shipping month
Order Characteristics – Lines/Order &
Cartons/Order
Receiving Log
Receiving Data
Date
2/28/00
2/29/00
3/1/00
3/2/00
3/3/00
3/6/00
3/7/00
3/8/00
3/9/00
3/10/00
3/13/00
3/14/00
3/15/00
3/16/00
3/17/00
Total
Average
Max
# of Trucks # of Pallets
8
7
7
5
6
11
8
9
6
5
9
7
8
7
4
256
224
224
160
192
352
256
288
192
160
288
224
256
224
128
107
7
11
3,424
228
352
Inventory Data
Inventory Analysis
Range
(Pallets)
0 - 0.25
0.25 - 1
1-4
5 - 10
11 - 20
21 - 40
41 - 100
> 100
Totals
Peak Inventory
# of
% of
Total
SKUs
SKUs
Pallets
450
23.2%
710
36.5%
533
368
18.9%
1,104
177
9.1%
1,416
111
5.7%
1,776
66
3.4%
2,046
41
2.1%
3,075
20
1.0%
2,600
1,943
100.0%
12,550
% of
Pallets
0.0%
4.2%
8.8%
11.3%
14.2%
16.3%
24.5%
20.7%
100.0%
Shipping Data
Volume Analysis
Peak Month Volume in Pallets
Range
(Pallets)
0
0 - 0.25
0.25 - 0.50
0.50 - 1
1-2
2-5
5 - 10
10 - 50
50 +
Totals:
# of SKUs
88
394
741
344
214
122
67
19
11
2,000
% of SKUs Total Pallets
4.4%
19.7%
79
37.1%
297
17.2%
276
10.7%
386
6.1%
488
3.4%
590
1.0%
872
0.6%
1,419
100.0%
4,407
% of Pallets
0.0%
1.8%
6.7%
6.3%
8.8%
11.1%
13.4%
19.8%
32.2%
100.0%
Order Characteristics
Lines per Order
1
2
6-10
10-20
20+
Totals:
Cartons per
Order
1
2-20
20-50
50-160
160-300
300+
Totals:
Stores Total
Orders
1
2
7
21
19
50
% Of
Orders Stores
2.0%
4.0%
14.0%
42.0%
38.0%
100.0%
Stores Total
Orders
1
3
6
20
16
4
50
% Of
Cartons Stores
2.0%
6.0%
12.0%
40.0%
32.0%
8.0%
100.0%
1
4
60
357
665
1,087
InternetTotal
Orders
222
19
8
1
250
% Of
Orders Internet
88.8%
7.6%
3.2%
0.4%
0.0%
100.0%
Total
Cartons Stores
1
30
240
2,000
2,720
1,300
6,291
InternetTotal
Orders
211
37
2
250
% Of
Cartons Internet
84.4%
14.8%
0.8%
0.0%
0.0%
0.0%
100.0%
Total Lines
- Stores
Total Lines Combined
- Internet
Orders
222
38
68
12
340
Total
Cartons Internet
211
111
44
366
223
21
15
22
19
300
Combined
Orders
Typical Daily Order Profile
212
40
8
20
16
4
300
% of Total
Orders
74.3%
7.0%
5.0%
7.3%
6.3%
100.0%
% of Total
Orders
70.7%
13.3%
2.7%
6.7%
5.3%
1.3%
100.0%
Combined
Lines
223
42
128
369
665
1,427
Combined
Cartons
212
141
284
2,000
2,720
1,300
6,657
% of Total
Lines
15.6%
2.9%
8.9%
25.9%
46.6%
100.0%
% of Total
Cartons
3.2%
2.1%
4.3%
30.0%
40.9%
19.5%
100.0%
Order Characteristics
Order Statistics
Average Lines/ Order
Average Cartons/Order
Average Cartons/Line
Retail
Stores
21.7
125.8
5.8
Internet/
Catalog
1.4
1.5
1.1
Combined
Typical Daily Order Statistics
4.8
22.2
4.7
Project Statement
&
Deliverables
Project Statement
Your team will design a new distribution center using
good material handling practices. The project will
require analysis and design of material flow, selection of
appropriate material handling equipment, and a detailed
description of the operation.
The submitted designs will be judged in a competition.
Project Deliverables
• A report (30 pages max) which must include:
– A written description of the operation and the decisions that
were made during design.
– A list of the equipment used in the operation.
• A 3.5”diskette (labeled with team members names
and school) that includes:
– A layout of the final design submitted as an AutoCAD (.dwg)
or Adobe (.pdf) file.
• A professional engineering presentation that:
– describes the major findings, and
– explains the functionality of the proposed design.
Project Evaluation
–
–
–
–
–
Projects will be evaluated using the following criteria:
Product Flow – A winning design will propose a layout that allows
for the most effective operation, while minimizing the travel
distances of product and people.
Equipment Utilization – A winning design will describe and cost
justify the choices and rationale used in the selection of types and
quantities of equipment.
Space Utilization – The winning design will illustrate the best use of
cubic capacity of the building without sacrificing the operational
effectiveness.
Operational Plan – The winning design will have an accompanying
operational plan that clearly describes overall system features and
operational details. This includes the job requirements, use of all
equipment, integration of any computer/WMS technology, and
guidelines for running this operation efficiently and safely for
employees.
Overall Integration - The winning design will clearly illustrate
overall integration of the previous four categories.
Equipment
• You can use any material handling/storage equipment including
but not limited to:
–
–
–
–
–
–
–
–
–
Pallet Rack - Single or Double Deep
Pushback Rack, Drive-in Rack
Lift Truck - Counterbalanced,Reach, Turret, Jacks
Case Flow Rack, Shelving, Carousels
Pallet Flow Systems
Dock levelers, Dock equipment
Conveyor - Powered and Gravity
Computers - WMS, scanners, RF technology
Mezzanines
QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.