Project 2 1.How many areas are needed to carry out 80% of the task? Volume of 1 area =18x66x10=11 880 m3 Space utilization = 50% Useful space utilization volume of 1 area=11’880x0,5=5940 m3 Mean value =10’000 pallets Standard deviation is 30% (3000 pallets) Range is 7000-13’000 pallets 80% of 13’000 pallets = 10’400 pallets 10’000-15000 m3 10400-x 15600m3/5940=2,62 x=10’400x15000/10’000=15’600 m3 We need 3 areas to carry 80 %of the task 2.What kind of storage system would you use in the rented warehouse if the client wants to sign a long-term contract? Pallet Racking For the busiest and largest warehouses, pallet racking systems are usually treated as the centerpiece of the operation. Typically, pallet racking systems are made out of wood, metal, or plastic and hold inventory that is received in large boxes. Depending on the height, the boxes are placed on the pallet racking system with the help of a forklift or an automated mechanism. Drive in Racking system - AR Drive InThe AR Drive In compact racking system is the optimum solution for the storage of homogenous products with a high number of unit loads per reference. It is a high-density pallet storage system designed to maximise the cubic space available by minimising the operating aisles needed for trucks. Compact pallet racking systems enable excellent stock control in the warehouse, as each lane of the structure is exclusively for a product reference. In this compact pallet racking system, parallel aisles are generated inside the structure, where the forklifts circulate to load or unload the unit loads. The forklift handles the load at a height higher than the level at which it will be deposited and deposits it on the load support rails, which are located on both sides of each level. There are two types of storage for the compact system, with the Drive in type being the most common: Drive in pallet racking (LIFO - Last in, First out) This is the most common compact racking system and only needs a single access aisle for the forklift. It uses the LIFO method, so the last load in is the first one out. Drive in compact racking is indicated for warehouses with low material turnover. Advantages and features for Drive in Racking for pallets:The main advantages of Drive in or Drive through compact pallet racking systems are their maximum compaction and optimisation of space and perfect stock control. Space optimization above 80%. Low maintenance and low assembly costs make this system one of the most cost-effective systems. Structure compatible with other storage systems. Provides maximum performance, and utilisation can be over 80% of the available space. Enables clearly arranged logistics management with full control of inventories as well as traffic and service flow. Designed to allow for quick reconfiguration of the structure for extension or change as needed. Ideal for storing low-rotation loads of the same type. Eliminates the service aisles found with a conventional pallet racking system. Maximised storage floor and height. Easily assembled modular structure. Trucks enter the system for loading. Includes various accessories to increase safety. Maximisation of space Products of the same type Low stock rotation Main applications of Drive in compact pallet racking systems:This is the most common and widely used static compact system. Its configuration for both FIFO and LIFO management makes it a versatile type of racking solution 3.What processes would be defined for the operation of the warehouse? 1. Receiving Receiving is the first warehouse process and one of the most crucial. To perform the receiving process properly, the warehouse should be able to verify that it has received the right product, in the right quantity, in the right condition, and at the right time. Failing to do so will have consequent impacts on all subsequent operations Receiving also involves the transfer of responsibility for the goods to the warehouse. This places accountability on the warehouse for maintaining the condition of the goods until they are shipped. Properly receiving cargo will allow you to filter out damaged goods and avoid liability for them. How to Optimize: The aim of optimizing the warehouse receiving process is to receive cargo efficiently and correctly and to avoid accumulation at the receiving docks. Solutions such as power pallet trucks and conveyors will allow you to unload cargo and clear dock areas faster and more efficiently. In addition, parcel and pallet dimensioning systems can automate the capture of the weight and dimensions of parcels and pallets to accelerate your receiving processing and obtain certified measurements. Finally, software such as labor management systems and dock schedulers allow you to properly allocate the right amount of personnel by accurately anticipating upcoming shipments. 2. Put-Away Put-away is the second warehouse process and is the movement of goods from the receiving dock to the most optimal warehouse storage location. Failing to place goods in their most ideal location can impair the productivity of warehouse operation. When goods are put away properly, there are several benefits: Cargo is stored faster and more efficiently Travel time is minimized Safety of goods and employees is ensured Warehouse space utilization is maximized Cargo is easier and faster to find, track, and retrieve How to Optimize: The aim of optimizing the putaway process is to move goods for storage to their most optimal location in a fast, efficient, and effective manner. Software such as slotting and space management systems automatically assign optimal spaces for each cargo to allow for a streamlined putaway process and maximized space utilization. In addition, putaway mobile applications and devices direct clerks to store cargo in the right location. 3. Storage Storage is the warehouse process in which goods are placed into their most appropriate storage space. When done properly, the storage process fully maximizes the available space in your warehouse and increases labor efficiency. How to Optimize: Optimizing your storage process is only possible when the right KPIs are properly tracked. Having a software that automatically calculates your warehouse storage utilization and tracks the right storage KPIs will allow you to determine how efficient each aspect of your storage process is. Slotting optimization systems can also help you by assisting with the allocation of the best storage location for a given cargo. Lastly, utilizing the right warehouse storage system according to the size of your facility and product mix allows you to maximize your horizontal and vertical spaces while improving warehouse efficiency. 4. Picking Picking is the warehouse process that collects products in a warehouse to fulfill customer orders. Since it is the costliest process in the warehouse, comprising as much as 55% of the total operating expense, optimizing this process will allow you to reduce costs significantly and increase your warehouse efficiency. Streamlining of this process should also focus on achieving higher accuracy, as errors can have a direct impact on your customer satisfaction. How to Optimize: One of the ways to optimize the picking process is introducing the right technologies. Technologies such as mobile and wearables can streamline the picking process because they allow clerks to view picking lists wirelessly, access systems in real time, and scan anywhere in the warehouse. Other viable options include conducting an ABC analysis to improve your warehouse layout, selecting the right picking methodology, and utilizing software to guide clerks in properly executing the picking process. 5. Packing Packing is the warehouse process that consolidates picked items in a sales order and prepares them for shipment to the customer. One of the primary tasks of packing is to ensure that damages are minimized from the time items leave the warehouse. Additionally, packaging must be light enough so as not to increase the weight of the goods and minimal enough to control packaging costs. How to Optimize: Optimizing the packing process can be done by utilizing software to guide people in executing the tasks. Provided that a packing system has all the necessary data, such as dimensions and weight, the system can automatically determine the type and amount of packaging material that will keep the item safe and packing costs low. 6. Shipping Shipping is the final warehouse process and the start of the journey of goods from the warehouse to the customer. Shipping is considered successful only if the right order is sorted and loaded, is dispatched to the right customer, travels through the right transit mode, and is delivered safely and on time. Previous processes, such as ordering, putaway, picking, and packing, are also vital to the success of shipping because they greatly affect whether the order is fulfilled accurately and safely. How to Optimize: To optimize the shipping process, having software systems to streamline many of the tasks is critical. Labor management systems let you allocate the right amount of resources to prevent over or under allocation. Having a shipping mobile application and device lets you have the right information on hand and in real time to verify shipments on the fly. And loading systems can let you have guides that clearly instruct how to load cargo safely and efficiently. 4.What kind of equipment and how many people would you applu to perform the orders? The number of movement that can perform 1 forklift is 11 pallets in / and 11 pallets out in 1 hour. 40 ft long trailer can fir 20 Euro Pallets 15 trucks a day is equal to 300 pallets to move in and move out.Total of 600 pallets If the working day is 8 hours. 600 pallets/8 hours = 75 pallets per hour has to be moved. 75 pallets per hour can be operated by 4 forklifts. Thus we need 4 reach trucks as well Cost of the option Forklift operators : 4 / x12’000 eur = 48’000 eur Reach truck operators: 4 /12’000 eur = 48’000 eur Rent fee=3 x 90’000 eur = 270’000 eur 48’000+48’000+270’000=366’000 eur per year.
