School of Engineering & Architecture
IE241L – OPERATIONS MANAGEMENT
ACTIVITIES 1 - 5 (COMPILATION)
Student Name
Acuna, Luis Philip D.
Benosa, Gyeneth D.
Guita, Angela Mae C.
Course:
Year and
Section:
Bachelor of Science in Industrial Engineering
3BSIE - 1
Date Performed
Date Submitted
July 15, 2025
August 13, 2025
Engr. Charisse C. Bautista, LPT
IE241L Lab Instructor
Table of Contents
Title Page
i
Introduction
1
Activity #1
Title
3
Objective
3
Instructions
3
Demand Skew
5
Acitivty #2
Title
13
Objective
13
Instructions
13
Master Production Schedule
15
Monthly Production Schedule
15
Weekly Production Schedule
17
Daily Production Schedule
22
Clean-in-Place
24
Changeover
24
Maintenance
24
Capacity
24
Challenges Faced During Scheduling
25
Recommendations
25
Activity #3
Title
27
Objective
27
Instructions
27
Student Task
27
Labor Requirements
28
Activity #4
Title
30
ii
Objective
30
Instructions
30
Student Task
30
Bill of Materials
31
Material Requirements Plan
32
Weekly Explosion
37
Vendor Schedule
42
Activity #5
Title
47
Objective
47
Instructions
47
Product (VeraNa Sanitary Pads)
49
Product Handling and Storage Needs
51
Raw Material Storage Planning
51
Finished Goods Storage Planning
54
Designing the Rack System
56
Warehouse Layout Plan
58
Capacity and Space Utilization Analysis
60
Documentation and Report
61
Executive Summary of Design Concept
61
Calculation and Drawings of Storage Requirements
62
Justification for Design Decisions
66
Challenges Encountered and Recommendations
67
iii
List of Tables
Table No.
Page
1
Production Volume of Regular VeraNa Pads
5
2
Production Volume of Overnight VeraNa Pads
5
3
Skew Demand Forecast of Regular VeraNa Pads (2026)
7
4
Skew Demand Forecast of Regular VeraNa Pads (2027)
7
5
Skew Demand Forecast of Regular VeraNa Pads (2028)
8
6
Skew Demand Forecast of Regular VeraNa Pads (2029)
8
7
Skew Demand Forecast of Regular VeraNa Pads (2030)
9
8
Skew Demand Forecast of Overnight VeraNa Pads (2026)
9
9
Skew Demand Forecast of Overnight VeraNa Pads (2027)
10
10
Skew Demand Forecast of Overnight VeraNa Pads (2028)
10
11
Skew Demand Forecast of Overnight VeraNa Pads (2029)
11
12
Skew Demand Forecast of Overnight VeraNa Pads (2030)
11
13
2026 Monthly Production Schedule
16
14
2027 Monthly Production Schedule
17
15
2026 Weekly Production Schedule
18
16
2027 Weekly Production Schedule
20
17
2026 Daily Production Schedule
22
18
2026 Labor Cost Analysis and Production Volume
28
19
2026 Labor Hours and Work Force Plan
29
20
2027 Labor Cost Analysis and Production Volume
29
21
2027 Labor Hours and Work Force Plan
29
22
Bill of Materials
31
23
2026 Monthly Material Requirement Plan
32
iv
24
2027 Monthly Material Requirement Plan
35
25
2026 MRP Weekly Explosion
37
26
2027 MRP Weekly Explosion
40
27
2026 Vendor Schedule
42
28
2027 Vendor Schedule
45
29
Bill of Materials
52
v
List of Figures
Figure No.
Page
1
Skew Demand Forecast Trend of Regular VeraNa Pads (2026)
12
2
Skew Demand Forecast Trend of Overnight VeraNa Pads (2026)
12
3
Legend for 2026 Daily Production Schedule
22
4
VeraNa Pad Composition
49
5
Size of Regular and Overnight VeraNa Pads
50
6
VeraNa Pads Packing (Regular and Overnight)
51
7
Organic Cotton Top Sheet and PLA Bioplastic Bottom Sheet Rolls
53
8
ISO Standard Pallet
55
9
Selective Floor Stacking System Illustrations
57
10
VeraNa Warehouse Layout
60
11
Top and Bottom Sheet Rolls Computation and Visualizations
63
12
Individual Packaging Computation and Visualization
64
13
Raw Materials Shelf Computation and Visualization
65
14
Banana Trunks Metal Shelf Computation and Visualization
66
vi
INTRODUCTION
The VeraNa Manufacturing Company is a sustainable consumer goods enterprise
specializing in the production of biodegradable sanitary pads designed to provide comfort,
reliability, and eco-friendly disposal. The company integrates innovative raw materials such as
banana pseudo-stem fibers, organic cotton, and PLA bioplastics into its product design, ensuring
that every product not only meets high-quality standards but also supports environmental
stewardship. Located in Calamba, Philippines, VeraNa serves both domestic and international
markets, with its supply chain strategically coordinated to source essential components from
various suppliers, including overseas vendors from China. Hence, to ensure quality output and
efficient operations, intensive and systematic planning is required, from forecasting demand to
managing raw materials, labor, and facility layout, so that production goals are consistently met
without compromising sustainability and efficiency.
The primary objective of this paper is to present and document the comprehensive
production planning and control activities developed for VeraNa Manufacturing Company. These
activities were completed as part of an operations management study and reflect practical,
industry-relevant applications. The work begins with the Monthly Master Production Schedule
(MPS), which translates sales forecasts into concrete monthly output goals. This is then broken
down into the Weekly Production Schedule (WPS) and Daily Production Schedule (DPS),
providing progressively detailed planning to ensure smooth and continuous operations. Together,
these schedules form the Master Production Plan, which serves as the foundation for all other
planning activities.
To support the execution of this plan, a Bill of Materials (BOM) was prepared to clearly
identify all components and raw materials required to produce the finished goods. This BOM
serves as the starting point for the Material Requirements Planning (MRP) process, which
calculates the quantities, ordering timelines, and lot sizes needed for each material. Closely tied to
MRP, labor requirements were computed to ensure that workforce allocation aligns with
production targets, minimizing idle time and preventing capacity bottlenecks.
1
Recognizing the importance of facility efficiency, the study also includes the design of a
warehouse layout aimed at optimizing storage space, streamlining material flow, and reducing
handling time. This ensures that materials move seamlessly from receiving to production, and from
production to finished goods storage, without unnecessary delays or costs.
Each section in this compilation connects to the next, demonstrating how accurate
forecasting feeds into scheduling, how scheduling informs materials and labor planning, and how
both are supported by effective facility design. By following this structured process, VeraNa
Manufacturing can maintain reliable delivery schedules, control costs, and uphold its commitment
to providing sustainable products to the market.
2
ACTIVITY #1
Title: Production Volume Planning for 2026 – 2030 Using Projected Demand, Production Volume
and Sales Skew
Objective: To enable students to apply forecasting and capacity planning concepts by translating
their projected volume of year 2026-2030 (from their Feasibility Study) into monthly and weekly
production volumes, considering real-world production factors such as operating hours, shifts,
number of working days, and product seasonality.
Instructions:
1. Base your work on your previous Feasibility Study output.
2. Use your group’s projected annual demand & production volume for 2026 to 2030 as the
basis for this activity.
3. Use the parameters and factors you already established in your feasibility study, such as:
a. Seasonality factors affecting monthly & weekly volume.
b. Historical or assumed sales skew percentage (per month and per week).
Steps
Step 1: Monthly Production Volume Planning
Distribute your annual Volume for 2026 to 2030 into monthly production volumes using your
identified sales skew per month. Consider product seasonality (peak vs. low months) in your
distribution.
Step 2: Weekly Production Volume Planning using sales skew
Using your monthly production volumes, further break down the production requirement per week.
Apply a weekly sales skew if applicable (Example: certain weeks in a month may have higher
expected demand due to trends like payday weeks, holidays, etc.).
3
Step 3: Capacity Check
Based on your available production schedule (hours/day × number of shifts × number of operating
days/week), check if the required weekly production is achievable. If there’s a shortfall or
overcapacity, suggest solutions (like overtime, extra shifts, or production leveling).
Step 4: Excel Template Design
Design a custom Excel template. Add sections for Graphs (Line or Bar chart showing production
volume trends monthly and weekly)
Step 5: Short Narrative Report
Include a 2-3 pages explanation addressing:
✓ How you applied your feasibility study data (parameters used).
✓ How sales skew and seasonality influenced your monthly and weekly production plans.
4
Demand Skew
The projected production volumes were determined based on forecasted market demand
and product distribution trends, resulting in a five-year outlook with increasing production targets.
For regular pads, the annual production volumes are projected as follows: 77,946 packs in 2026,
increasing to 117,038 in 2027, 139,176 in 2028, and peaking at 208,457 packs in both 2029 and
2030. Similarly, for overnight pads, the projected volumes start at 71,681 packs in 2026, then rise
to 105,562 in 2027, 123,224 in 2028, and reach 185,005 packs by 2029 and 2030. These figures
serve as the raw production volumes and do not yet account for production efficiency adjustments.
Tables 1 and 2 below show the production volumes of regular and overnight sized sanitary
pads from 2026 to 2030.
Table 1
Production Volume of Regular VeraNa Pads
Production Volume (Regular)
Year
Production Volume (Packs)
2026
77,946
2027
117,038
2028
139,176
2029
208,457
2030
208,457
Table 2
Production Volume of Overnight VeraNa Pads
Production Volume (Overnight)
Year
Production Volume (Packs)
5
2026
71,681
2027
105,562
2028
123,224
2029
185,005
2030
185,005
To derive a more detailed monthly distribution, we implemented a skewing strategy to
proportion the annual volume into monthly and weekly demand forecasts. This monthly skew was
established based on historical consumption trends and market behavior, with significant
consideration given to research suggesting that menstrual product demand typically peaks during
the third quarter of the year—particularly July to September—due to environmental and healthrelated factors such as increased menstrual irregularities and heavier flow during warmer months
(Pivarnik et al., 2020; Harlow & Ephross, 2021). As such, July to September were assigned the
highest monthly percentage allocations at 11%, followed by October to December at 9%, January
at 7%, and the remaining months at 6–7% of total annual demand.
Each monthly demand was further broken down into weekly targets to match the biweekly
production cycle. For regular pads, production is allocated during the first and second weeks of
each month, with 60% of the monthly forecast scheduled for the first week and 40% for the second.
On the other hand, overnight pad production occurs in the third and fourth weeks, also split 60%40% across the two weeks. This consistent biweekly changeover is scheduled with a one-hour
downtime between variants to clean and reset equipment. This approach allows the facility to
maintain operational efficiency while ensuring that inventory is replenished for both product types
every month. The biweekly changeover system also allows the company to consolidate inventory
more effectively and prevents overlapping production between variants, which could complicate
scheduling and storage which was shown in Tables 3 to 7.
6
Table 3
Skew Demand Forecast of Regular VeraNa Pads (2026)
Table 4
Skew Demand Forecast of Regular VeraNa Pads (2027)
7
Table 5
Skew Demand Forecast of Regular VeraNa Pads (2028)
Table 6
Skew Demand Forecast of Regular VeraNa Pads (2029)
8
Table 7
Skew Demand Forecast of Regular VeraNa Pads (2030)
Moreover, Tables 8 to 12 show the skew demand forecast of overnight VeraNa pads from
2026 to 2030.
Table 8
Skew Demand Forecast of Overnight VeraNa Pads (2026)
9
Table 9
Skew Demand Forecast of Overnight VeraNa Pads (2027)
Table 10
Skew Demand Forecast of Overnight VeraNa Pads (2028)
10
Table 11
Skew Demand Forecast of Overnight VeraNa Pads (2029)
Table 12
Skew Demand Forecast of Overnight VeraNa Pads (2030)
The illustration of the monthly demand skew for both product types is shown below, which
depict the percentage distribution and forecasted volume for the Regular and Overnight VeraNa
pad variants, respectively. Since the percentage for each month remains constant all throughout
the years, the trend exhibits the same graph for both regular and overnight pads from 2026 to
2030. The skewness poses production challenges, particularly in July–September when demand
exceeds plant capacity. To manage this, production and inventory were front-loaded in the first
half of the year. This pattern was consistent across both variants, requiring aligned scheduling and
storage strategies which was shown below in Figures 1 and 2.
11
Figure 1
Skew Demand ForecastTrend of Regular VeraNa Pads (2026)
Figure 2
Skew Demand ForecastTrend of Overnight VeraNa Pads (2026)
12
ACTIVITY #2
Title: Master Production Schedule with Weekly and Daily Breakdown for 2026 Considering
Inventory Levels and Changeover Time
Objective: To enable students to apply Master Production Scheduling (MPS) principles by
creating a monthly, weekly, and daily production schedule for 2026, incorporating inventory
planning, changeover time, and cleaning downtime (Clean-In-Place - CIP) based on their project
feasibility study parameters.
Instructions: Use your group’s Forecasted Monthly Production Volumes for 2026 (From Activity
#1 Output)
Step 1: Create a Master Production Schedule (MPS) for 2026 (Monthly Level) . Your MPS should
show:
➢ Beginning Inventory for January = 0 units
➢ You may set your own target ending inventory for each month (ex: 5-10% of next
month’s demand or based on group strategy).
Step 2: Weekly Production Scheduling
Break down each monthly production requirement into weekly production targets using your
weekly sales skew (%).
Step 3: Daily Production Schedule
For each week, break down the weekly production into daily production schedules, considering:
➢ Number of operating days per week (as per your feasibility study)
➢ Daily production capacity (hours, shifts, output per hour)
➢ Target units per day.
Step 4: Consider Changeover and CIP (Clean in Place) Time
13
For each week or day, assume production of at least 2 product variants (or SKUs) to simulate
product changeovers.
Include the following planning assumptions:
Step 5: Excel Template Design
The final Excel file should have the following sheets/tabs:
➢ MPS (Monthly Summary)
➢ Weekly Production Schedule
➢ Daily Production Schedule (with changeover and cleaning time adjustments)
➢ Inventory Tracking Table (Beginning Inventory, Production, Ending Inventory for each
month)
➢ Graphs/Charts (Optional but recommended – e.g., Monthly Production vs Demand,
Inventory Level per Month)
Step 6: 2-3 Pages Narrative Explanation
Include a short report discussing:
➢ The assumptions made (inventory targets, number of operating days, changeover
time, cleaning time).
➢ Challenges faced during scheduling (e.g., capacity limitations, downtime).
➢ Recommendations for improving production flexibility or reducing setup time.
14
Master Production Schedule
This narrative supports the comprehensive production planning completed for the 2026
operational year, specifically addressing the development of a Master Production Schedule (MPS),
Weekly Production Schedule (WPS), and Daily Production Schedule (DPS). The activity aimed
to simulate realistic manufacturing operations by integrating key production planning elements
such as forecasted demand, inventory control, changeover durations, and Clean-In-Place (CIP)
downtimes. By converting forecasted monthly volumes into actionable weekly and daily
production targets, this exercise reinforces the importance of aligning production capacity with
demand variability while maintaining operational efficiency. The schedules also reflect
assumptions based on the group’s feasibility study, including target ending inventory levels, shift
capacities, and operating days, which helped refine production pacing and ensure a continuous
flow without stockouts or excessive buildup.
The master production plan for the years 2026 to 2030 was developed to ensure a
responsive and balanced approach to meeting forecasted demand for both regular and overnight
sanitary pads. The projected production volumes were determined based on forecasted market
demand and product distribution trends, resulting in a five-year outlook with increasing production
targets. For regular pads, the annual production volumes are projected as follows: 77,946 packs in
2026, increasing to 117,038 in 2027, 139,176 in 2028, and peaking at 208,457 packs in both 2029
and 2030. Similarly, for overnight pads, the projected volumes start at 71,681 packs in 2026, then
rise to 105,562 in 2027, 123,224 in 2028, and reach 185,005 packs by 2029 and 2030. These figures
serve as the raw production volumes and do not yet account for production efficiency adjustments.
Monthly Production Schedule
In terms of monthly production capacity, the “Quantity to Produce” field was established
based on the plant’s operational capability rather than matching it directly to the fluctuating
demand forecast. For 2026, this capacity was fixed at 6,708 packs monthly for regular pads and
6,168 for overnight pads. As a result, the ending inventory (calculated as the difference between
quantity produced and monthly forecasted demand) is consistently positive during the first half of
the year but becomes negative in the second half. This is a deliberate strategy. The ending
inventory in the earlier months is not intended for immediate distribution but will instead be
15
retained in stock to compensate for the production shortfall that occurs during the higher-demand
months (July to December), when actual demand exceeds the production capacity.
This safety stock approach ensures that even though the capacity does not increase in the
latter part of the year, the company will still have sufficient inventory to meet elevated demand
without disrupting supply continuity. The beginning inventory for each month is derived from the
previous month’s ending inventory, and this rollover continues throughout the year to monitor
stock levels. Although negative inventory values appear in the second half, these are theoretical
figures, indicating that actual sales are being supported by previously built-up stock.
For better and uniform understanding in creating the monthly production schedule,
assumptions were established:
● Production volume is fixed by capacity, not forecast
● Monthly demand is skewed based on historical consumption trends
● Inventory is intentionally overbuilt early in the year
● Ending inventory is a planned buffer and not sold
● Inventory flow is cyclic and cumulative
Monthly production schedules of 2026 and 2027 are shown below in Tables 13 and 14.
Table 13
2026 Monthly Production Schedule
16
Table 14
2027 Monthly Production Schedule
Weekly Production Schedule
The Weekly Production Schedule (WPS) serves as the intermediate planning layer between
the monthly capacity plan and the highly detailed daily allocations. Using the fixed monthly
production capacity from the MPS, the WPS distributes production volumes across the weeks of
each month while considering operational constraints and demand skews. The schedule follows a
biweekly production allocation per variant, meaning each variant (regular and overnight pads) is
produced alternately in two-week blocks to minimize changeover losses. Within each two-week
block, a 60%-40% weekly skew is applied—frontloading production in the first week to build
buffer inventory while allowing the second week to run at a slightly lower output, accommodating
possible maintenance or minor disruptions. Weekly targets remain capacity-based and fixed,
independent of sudden short-term demand fluctuations, ensuring operational stability. Inventory
levels are monitored at the end of each week to maintain visibility on buffer stocks and detect early
warning signs of shortages. Importantly, no production is scheduled during changeover periods,
preserving operational efficiency and avoiding mid-week disruptions.
To summarize the weekly production schedule assumptions:
● Biweekly production allocation per variant
● 60%-40% weekly skew within each 2-week block
● Weekly production targets are fixed and capacity-based
● Inventory is monitored weekly
● No production during changeover periods
17
Tables 15 and 16 show weekly production schedules of years 2026 and 2027.
Table 15
2026 Weekly Production Schedule
18
19
Table 16
2027 Weekly Production Schedule
20
21
Daily Production Schedule
To provide more precision and operational realism, a Daily Production Schedule (DPS)
was developed. This DPS considers non-working days such as Sundays, public holidays, and
planned maintenance days, and allocates the production volume only across valid working days.
For instance, if January Week 1 has five working days (excluding one holiday), the weekly target
of 2,728 packs for regular pads would be distributed evenly or proportionally across the four valid
production days. This level of detail ensures that the production team can execute daily targets
realistically, with manageable workloads and reduced risk of overloading machines or operators.
For better and uniform understanding in creating the daily production schedule,
assumptions were established:
● Only valid working days are considered
● Equal or proportional distribution of weekly targets
● Production is assumed to meet daily targets
● Inventory flows are continuous and tracked daily
● Biweekly variant switchovers are respected at the daily level
Figure 3 shows the legend used to understand DPS and Table 17 below shows the 2026
daily production schedule of VeraNa Manufacturing.
Figure 3
Legend for 2026 Daily Production Schedule
Table 17
2026 Daily Production Schedule
22
23
Clean-In-Place (CIP)
The clean-in-place transpires at the start of every shift lasting for 30 minutes each;
therefore, the available time for production, which is 420 minutes, becomes 390 minutes for each
shift. This is to ensure that all equipment is sanitized and free from any contaminants before
production begins. Regular CIP helps maintain product quality, ensures compliance with hygiene
standards, and prevents cross-contamination.
Changeover
The changeover for the year 2026 occurs at the end of the 2nd and 4th week of the month.
Specifically, the changeover time lasts for 1 hour each, which essentially affects the available
production time of both regular and overnight-sized VeraNa pads every month. This is reflected
in the available production time per shift. From 390 minutes per shift, the production time per shift
becomes 387.42 minutes to account for the changeover. Hence, the obtained production volume
per shift already accounts for the changeover time.
Maintenance
Maintenance is conducted once a month and spans a full day. This scheduled downtime
alternately affects the production of regular pads and overnight pads—each type losing six
production days a year. To further explain, in January, the maintenance day falls on the production
schedule for regular pads, while in February, it shifts to impact overnight pad production,
continuing in this alternating pattern throughout the year.
Capacity
The capacity of the production per shift is based on the available time for production per
shift over the cycle time per unit. After taking into consideration the changeover time annually,
the available production time per shift is 387.42 minutes. It is then divided by the cycle time of
each variant which is 0.1732 and 0.1885 minutes for regular and overnight pads respectively. The
results are 279.6 regular pads per shift, in packs, as well as 256.91 overnight pads per shift, in
packs.
24
Challenges faced during scheduling
One of the primary challenges encountered during the scheduling process was managing
the sharp increase in demand beginning in July, where the monthly forecast rose to 11% of the
annual volume. This surge exceeded the calculated monthly production capacity of the plant,
posing a risk of not meeting market requirements on time. To address this limitation, a proactive
inventory buildup strategy was adopted in the first half of the year. By deliberately overproducing
during the months with lower demand, the team was able to create sufficient inventory buffers to
offset the capacity shortfall in the latter months. This approach ensured continuity of supply
without overextending operational capacity or requiring additional shifts, although it introduced
added complexity in terms of inventory tracking and storage space planning.
Another challenge was coordinating the production of two variants—regular and
overnight-sized VeraNa pads—within strict daily time constraints. Clean-In-Place (CIP) activities
were conducted at the start of each shift, reducing daily productive time. Additionally, scheduled
changeovers at the end of the 2nd and 4th weeks of each month further limited available minutes.
These operational interruptions required careful integration into the shift schedules to ensure both
variants met their production targets without compromising hygiene standards or overall
efficiency.
Recommendations
To improve scheduling flexibility and production efficiency, several measures are
recommended. First, the plant may benefit from expanding capacity—either by increasing the
number of shifts during high-demand months or investing in faster production equipment—to
avoid over-reliance on front-loading strategies that tie up storage space and increase inventory
costs. Alternatively, implementing a demand-driven or pull-based replenishment system can help
align production more closely with real-time sales trends, reducing excess stock buildup.
Second, reducing changeover time between product variants would significantly increase
productive hours. This could be achieved through Single-Minute Exchange of Die (SMED)
principles or equipment upgrades that allow quicker transitions. Training operators to perform
parallel tasks during changeovers can also contribute to minimizing downtime.
25
Lastly, digitalizing the production planning process through manufacturing software or
advanced Excel models can streamline scenario analysis and provide quicker responses to demand
fluctuations, equipment breakdowns, or schedule changes.
26
ACTIVITY #3
Title : Manpower Requirement Plan (2026 – 2027)
Objective: To transform aggregate production volumes into a realistic head-count plan that
respects Philippine labor standards (8-hour day) and the plant’s shift structure.
Instructions:
1. Using the approved aggregate production plan of year 2026-2027, provide a monthly
staffing plan toguide the HR recruitment and manpower plan in the production area.
2. Include the desired inventory level in manpower planning.
3. Use the Cycle time (CT) to produce one unit (seconds or minutes) in computing the labor
hours per month.
4. Use also the Operating calendar: • Operating days per month (from feasibility study) • Up
to 3 shifts per day • 8 working hours per shift (DOLE rule).
Student Task
1. Convert Volume into Labor-Hours (Monthly Units × CT (in hours)).
2. Determine the Required Headcount per month, per day and per shift.
3. Determine the equivalent manpower cost per month.
4. Provide Charts – line graph: required headcount vs. months.
5. Two to Three pages narrative explaining peak periods and recommended actions (hiring,
OT, cross-training).
27
Labor Requirements
To support the stable monthly production of VeraNa sanitary pads, labor planning has been
structured around consistent output and efficient shift management. In 2026, production operates
at full capacity with 2 shifts per day, while in 2027, operations expand to 3 shifts per day to meet
increased demand. Each shift spans 8 hours, with workers earning the provincial non-agricultural
daily wage of P540, equivalent to P67.50 per hour. The production schedule allocates 24 working
days per month, divided equally between 12 days for regular pads and 12 days for overnight
variants. Given that production is maintained at maximum capacity throughout both years, labor
requirements remain constant across the months for each year, ensuring workforce stability and
predictable labor costs. This setup supports efficient production planning and facilitates
streamlined payroll.
To compute for the required work force in 2026, production volume and labor cost analysis
is needed which are shown in Table 18 below
Table 18
2026 Labor Cost Analysis and Production Volume
Moreover, Table 19 reveals that in order to suffice the production demand, there should be
5 workers per shift (10 workers per day).
28
Table 19
2026 Labor Hours and Work Force Plan
Similarly, Table 20 shows the production volume and labor cost analysis for 2027.
Table 20
2027 Labor Cost Analysis and Production Volume
Consistently, Table 21 reveals that in order to suffice the production demand, there should
be 5 workers per shift (10 workers per day).
Table 21
2027 Labor Hours and Work Force Plan
29
ACTIVITY # 4
Title: Material Requirement Plan & Vendor Scheduling (2026 – 2027)
Objective: Translate production plans into a time-phased material requirement plan (MRP1) that
respects BOM structure, supplier MOQs, and delivery calendars.
Instructions
1. Ensure every raw and packaging material arrives when needed for the 2026–2027 schedule.
2. Establish a Bill of Materials (BOM) for the finished product.
3. Embed Supplier constraints such as MOQ, and standard lead time in the MRP1.
Student Task
1. Build a BOM Table – item code, description, qty per FG, MOQ, lead-time.
2. Compute for the Monthly MRP – multiply FG volume × qty per FG; round up to MOQ
3. Weekly Explosion – spread each month to weeks (4-5 weeks).
4. Daily Vendor Schedule – offset by lead-time; list delivery dates & lots.
5. Narrative report in 2-3 pages covering MOQ rationale, lot sizing policy, and vendorcoordination issues. Include the assumptions & risk discussion such as over/under-stock
risk.
30
Bill of Materials (BOM)
The Bill of Materials (BOM) for VeraNa sanitary pads outlines all the essential raw and
packaging materials required to produce a finished product. Each sanitary pad is composed of
various components identified by their respective item codes. RM01 refers to the banana pseudostem, which forms the absorbent core of the pad. RM02 and RM03 are rolls of organic cotton and
PLA bioplastic, respectively, used as the top and bottom sheets; both materials have a conversion
rate of 1 roll per 5,000 pads. RM04 is the biodegradable individual packaging, while RM05 is the
adhesive layer with release paper, with a productivity of 2,667 pads per roll. RM06, aloe vera
extract, serves as an antimicrobial finishing layer and has a conversion rate of 1 liter per 3,333
pads. The wrap is sealed using PK01, an adhesive tape for individual wrap, which can
accommodate 16,000 pads per roll. Each pad is packed into PK02, a square straight tuck-end box,
with one box containing 8 pads. For shipping, BX01 represents the shipping carton box, which
holds 36 individual boxes. Given the monthly production requirements of 12,876 pads in 2026 and
19,314 pads in 2027, these conversion ratios are essential for determining the required quantity of
each raw material to meet the forecasted production levels.
Table 22 below shows the bill of materials with item code, descriptions, required quantity,
MOQ, and lead time needed for production of VeraNa pads.
Table 22
Bill of Materials
31
Material Requirements Plan (MRP)
The Material Requirements Plan (MRP) for VeraNa sanitary pads was developed to ensure
timely availability of raw and packaging materials, balancing production demands with inventory
levels and supplier constraints. The MRP operates on a monthly basis, considering three main
components: the previous month's ending inventory (extra stocks), the incoming inventory for the
current month, and the required ending inventory for safety and continuity. For each item,
minimum order quantities (MOQ) were also integrated into the planning process to reflect supplier
constraints. For instance, RM02 (organic cotton rolls) and RM03 (PLA bioplastic rolls) each
require a minimum order of 30 rolls per transaction, even if the calculated need is lower. Similarly,
RM05 (adhesive with release paper) and RM06 (aloe vera extract) have MOQs of 50 rolls and 50
liters, respectively, while PK02 (individual boxes) and BX01 (shipping cartons) must be procured
in batches of at least 15,000 and 500 units. Despite needing only 358 shipping boxes per month,
orders are adjusted to meet the MOQ, leading to stock buffers that carry over to the next month.
This proactive inventory management ensures uninterrupted production, prevents material
shortages, and aligns procurement with vendor conditions, all while maintaining cost efficiency
through strategic ordering and inventory control.
Tables 23 and 24 below show the material requirements plan of 2026 and 2027 which
includes the last month’s extra stock, stock entering the warehouse, and stocks leaving the
warehouse.
Table 23
2026 Monthly Material Requirement Plan
32
33
34
Table 24
2027 Monthly Material Requirement Plan
35
36
Weekly Explosion
The Weekly Explosion breaks down the monthly Material Requirements Plan (MRP) into
manageable weekly quantities to align production needs with a consistent and efficient supply
flow. For VeraNa sanitary pads, the total monthly requirement for each raw and packaging material
is evenly distributed across four production weeks, ensuring a smooth and continuous
manufacturing process. This granular approach allows for better monitoring of material
consumption, reduces the risk of mid-month shortages, and helps maintain optimal inventory
levels on a week-to-week basis. By spreading the required quantities, such as rolls of organic
cotton, PLA bioplastic, and adhesive, as well as units of packaging materials, over four weeks, the
production can coordinate more precisely with warehouse and procurement operations, reinforcing
schedule adherence and improving responsiveness to any unexpected disruptions. The weekly
distribution also enhances forecasting accuracy and supports more agile adjustments in case of
demand fluctuations or supplier delays.
Tables 25 and 26 show the weekly explosion of years 2026 and 2027.
Table 25
2026 MRP Weekly Explosion
37
38
39
Table 26
2027 MRP Weekly Explosion
40
41
Vendor Schedule
The Vendor Schedule for VeraNa sanitary pads was formulated to synchronize the
procurement of raw and packaging materials with the production calendar, considering supplier
lead times and minimum order quantities (MOQs). Given that most suppliers are based in China,
with a lead time of 15 days, materials must be ordered at least half a month in advance to meet
production deadlines. The schedule ensures that materials arrive before production begins, while
also accounting for stock carried over from the previous month and potential buffer inventory.
Ordering decisions are made by comparing the monthly required quantity with available beginning
inventory and determining if the remaining balance reaches or exceeds the MOQ. If not, the
company strategically rounds up orders to the nearest MOQ level to avoid stockouts and align with
supplier terms. For example, even if only 21 rolls of organic cotton (RM02) are needed, a purchase
of 30 rolls is made to meet the MOQ. The vendor schedule also integrates forecasted monthly
requirements, seasonal fluctuations, and expected increases in demand (e.g., the increase to 19,314
pads per month in 2027). This structured vendor timeline ensures a consistent flow of materials,
minimizes express shipping costs, and supports a lean yet resilient supply chain capable of
adapting to varying production loads and market conditions.
Tables 27 and 28 show the vendor schedule for 2026 and 2027.
Table 27
2026 Vendor Schedule
42
43
44
Table 28
2027 Vendor Schedule
45
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ACTIVITY #5
Title: Designing an Efficient Warehouse Layout with Racking System and Pallet Configuration
Objective: To apply concepts of facility layout, material handling, and storage systems by
designing a warehouse that efficiently utilizes space, supports smooth operations, and maximizes
capacity using appropriate racking and pallet configurations for a selected product.
Project Instructions:
1. Select a Product or Product Line
● Choose a specific product (e.g., bottled beverages, packaged rice, automotive parts, canned
goods, etc.)
● Define key physical characteristics: dimensions, weight, packaging type, and handling
requirements.
2. Determine Product Handling and Storage Needs
● Define the type of pallet used (standard size: 1200 mm x 1000 mm unless otherwise
needed).
● Decide on pallet stacking configuration (e.g., boxes per layer, number of layers per pallet).
● Calculate total number of pallets expected in inventory (based on daily/weekly
throughput).
3. Design the Racking System
● Choose a suitable racking type: Selective, Drive-in, Pallet Flow, Cantilever, Push-back,
etc.
● Justify your choice based on product characteristics and throughput.
Determine:
➔ Number of rack levels (tiers)
➔ Number of pallet positions per bay
➔ Aisle width (for equipment like forklifts)
➔ Maximum rack height based on standard warehouse dimensions
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4. Create a Warehouse Layout Plan
Use graphing paper, CAD software, or any drawing tool.
Show:
➔ Receiving and shipping areas
➔ Racking zones with pallet positions
➔ Material handling equipment path (e.g., forklifts)
➔ Emergency exits and safety zones
➔ Office/admin areas (optional)
5. Capacity and Space Utilization Analysis
Calculate:
➔ Total warehouse area vs. storage area
➔ Space utilization efficiency (%)
➔ Pallet storage capacity
➔ Optional: Consider FIFO/LIFO implications based on your racking system.
6. Documentation and Report
➔ Executive summary of design concept
➔ Specs and storage requirements
➔ Calculations (pallet stacking, number of racks, total capacity, etc.)
➔ Layout drawing (manual or software-generated)
➔ Justifications for design decisions
➔ Challenges encountered and recommendations
7. Presentation
10 minute presentation explaining key aspects of your warehouse design.
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Product (VeraNa Sanitary Pads)
The specific product line to be used in designing the warehouse layout is the VeraNa
Sanitary Pad line. This product line includes two variants: the Regular VeraNa sanitary pads and
the Overnight VeraNa sanitary pads. Both variants are designed with sustainability in mind,
featuring identical biodegradable material layering. Each pad is composed of an organic cotton top
sheet, a polylactic acid (PLA) bioplastic backsheet, and a processed banana fiber absorbent core
which was shown in Figure 4 below.
Figure 4
VeraNa Pad Composition
Despite their similarities in composition, the two variants differ in size and weight. The
Regular VeraNa pad measures 240 mm × 150 mm and weighs 8 grams, while the Overnight
VeraNa pad measures 290 mm × 150 mm and weighs 10 grams as seen in Figure 5.
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Figure 5
Size of Regular and Overnight VeraNa Pads
This slight difference in size also results in a variation in packaging dimensions. Each pad
is individually wrapped using biodegradable film, then grouped into a retail box containing 8 pads
per box. The retail box dimensions for the regular variant are 75 mm × 32 mm × 80 mm, while the
overnight variant measures 75 mm × 32 mm × 97 mm. For bulk storage and transportation, these
retail boxes are packed into corrugated master cartons. The regular variant uses a carton with
dimensions 460 mm × 105 mm × 170 mm, and the overnight variant uses 460 mm × 105 mm ×
205 mm as seen in Figure 6. A single corrugated box can accommodate exactly 36 retail boxes of
regular VeraNa pads based on dimension fitting.
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Figure 6
VeraNa Pads Packing (Regular and Overnight)
Finally, to ensure efficient warehouse operations and safe movement of goods, both manual
handling and the use of industrial manual forklifts will be employed. Manual handling will be used
for lighter tasks such as organizing individual retail boxes or arranging corrugated boxes during
packing. For bulk movement, particularly of palletized corrugated boxes during receiving, storage,
and dispatch, manual pallet jacks and industrial manual forklifts will be utilized to improve
operational efficiency and reduce physical strain on workers.
Product Handling and Storage Needs
The warehouse will accommodate both raw materials used in the production of VeraNa
biodegradable sanitary pads and the finished goods intended for distribution. Storage planning is
designed to ensure proper handling, safety, and efficient material flow for each category.
Raw Material Storage Planning
Raw materials for VeraNa pads primarily include banana pseudo stems, aloe vera extract,
packaging materials, and other essential inputs. To further detail the raw material storage
requirement, the Bill of Materials (BOM) for both regular and overnight pads are shown below.
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Table 29
Bill of Materials
Banana Pseudo-stems
This material requires 62 trunks per month and will be stored on a dedicated shelf enclosed
within ventilated plastic curtains to promote airflow, control humidity, and protect against pests.
The shelf will be 4 meters long, 2 meters deep, and 2 meters high, with five layers each measuring
0.4 meters in height. For strength and moisture resistance, the shelving will be made from powdercoated steel, which is a material suitable for holding agricultural produce without warping or
rusting. Handling will be done using trolleys, which are sufficient for moving the bulky but
relatively lightweight trunks from the receiving area to storage.
Organic Cotton Roll & PLA Bioplastic Roll
Both materials require 21 rolls per month; however, with a minimum order quantity (MOQ)
of 30 rolls per delivery, storage will be planned based on this higher volume. The rolls will be
stored on pallets measuring 1.2 meters by 1 meter, with six rolls per layer and five layers per pallet
as shown in Figure 7. This means that one pallet is required for each roll. To ensure durability,
hygiene, and moisture resistance, plastic pallets will be used instead of wood or metal, as they are
lighter, easier to clean, and less prone to harboring pests or rust. Handling from the receiving area
to storage and production will be done using trolleys for efficiency.
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Figure 7
Organic Cotton Top Sheet and PLA Bioplastic Bottom Sheet Rolls
Biodegradable Individual Packaging
This material requires 104,000 pieces monthly, but with a minimum order quantity (MOQ)
of 20,000 pieces per delivery, storage capacity will be based on this volume. Each box contains
10,000 pieces, so 12 boxes are needed to meet the requirement. Given pallet dimensions, only two
boxes can fit per pallet layer. With a three-tier stacking arrangement, each pallet can hold six
boxes, meaning two pallets are required in total. To maintain hygiene and avoid deformation,
plastic pallets will be used, as they are moisture-resistant, lightweight, and easy to sanitize.
Material handling from receiving to storage will also be done using trolleys.
Adhesives & Retail Boxes
The adhesive with release paper and the adhesive tape for individual wraps will each
require only one box for storage. Meanwhile, the square straight tuck end retail boxes require
15,000 pieces monthly. With each box containing 1,000 pieces, a total of 15 boxes will be stored.
All these materials will be organized on a shared storage shelf measuring 2.5 meters by 2.5 meters,
with five layers for efficient vertical space utilization. The shelf will be made of powder-coated
steel to ensure durability, resistance to pests, and ease of cleaning. For material handling,
lightweight trolley carts will be used for quick transport between receiving, storage, and the
production line.
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Aloe Vera Extract
The production process requires 50 liters of aloe vera extract per month. This will be
supplied in 2-liter jugs, totaling 25 jugs for storage. To preserve its antimicrobial and soothing
properties, the extract will be stored inside a dedicated industrial refrigerator. The refrigerator will
maintain the optimal temperature range for preventing spoilage while ensuring product quality.
Material handling for this ingredient will involve manual transfer using small food-grade plastic
bins or trays to safely carry jugs from cold storage to the production area.
Carton Box
For the carton boxes, the monthly requirement is 500 folded cartons. With the pallet
dimensions of 1 m × 1.5 m, a single pallet can accommodate more than this quantity, so only 1
pallet is needed for storage. A plastic pallet is recommended for durability and moisture resistance.
Finished Goods Storage Planning
The ISO standard pallet to be used has dimensions of 1.2m × 1m × 0.15m, with a maximum
allowable height of 1.2m including the pallet itself as shown in Figure 8. Each layer of the pallet
can accommodate 22 corrugated carton boxes, whether for regular or overnight pads, totaling 792
packs per layer. The boxes are oriented on the pallet with the 460mm side aligned along the
1000mm side of the pallet, and the 105mm side aligned along the 1200mm side, allowing for a
tighter fit of 22 boxes per layer.
𝑇𝑜𝑡𝑎𝑙 𝑃𝑎𝑐𝑘𝑠 𝑖𝑛 𝑎 𝐿𝑎𝑦𝑒𝑟 = 𝑛𝑜. 𝑜𝑓 𝑏𝑜𝑥𝑒𝑠 𝑥 𝑛𝑜. 𝑜𝑓 𝑝𝑎𝑐𝑘𝑠 𝑖𝑛 𝑎 𝑏𝑜𝑥
54
Figure 8
ISO Standard Pallet
For regular pads, the weekly production volume is 3,354 packs. To meet this, five pallet
layers are used. Four of these layers are fully loaded with 22 boxes each, while the fifth layer
contains only 6 boxes to fulfill the remaining demand. Each box has a height of 170mm, so the
total height of the stacked boxes is 850mm, and with the pallet height of 150mm, the total height
reaches 1000mm—well within the 1200mm height limit.
𝑇𝑜𝑡𝑎𝑙 ℎ𝑒𝑖𝑔ℎ𝑡 = (ℎ𝑒𝑖𝑔ℎ𝑡 𝑜𝑓 𝑏𝑜𝑥 𝑥 𝑛𝑜. 𝑜𝑓 𝑙𝑎𝑦𝑒𝑟𝑠) + ℎ𝑒𝑖𝑔ℎ𝑡 𝑜𝑓 𝑝𝑎𝑙𝑙𝑒𝑡
For overnight pads, the weekly production is 3,084 packs. This is covered by four layers:
three full layers of 22 boxes and one partial layer of 20 boxes. Each overnight box has a height of
205mm, resulting in a total box stack height of 820mm. Adding the 150mm pallet height, the total
reaches 970mm, which also complies with the 1200mm limit.
𝑇𝑜𝑡𝑎𝑙 ℎ𝑒𝑖𝑔ℎ𝑡 = (ℎ𝑒𝑖𝑔ℎ𝑡 𝑜𝑓 𝑏𝑜𝑥 𝑥 𝑛𝑜. 𝑜𝑓 𝑙𝑎𝑦𝑒𝑟𝑠) + ℎ𝑒𝑖𝑔ℎ𝑡 𝑜𝑓 𝑝𝑎𝑙𝑙𝑒𝑡
In terms of weight, both pallet loads stay well under the 1000kg limit. The regular pallet
contains 94 boxes in total, with each box weighing approximately 2.4kg (2.3kg of product + 100g
box weight), resulting in a total pallet weight of approximately 226kg. For overnight pads, the
pallet carries 86 boxes, each weighing about 3kg (2.88kg of product + 120g box weight), giving a
total weight of around 258kg.
Total weight = no. of boxes x (weight of 36 pads in a box + weight of box)
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Overall, the pallet configurations for both regular and overnight pads respect the ISO pallet
size, height, and weight constraints while efficiently meeting weekly production volumes.
As such, only one pallet per week is required to meet VeraNa’s weekly production target,
as each pallet already contains the necessary number of boxes to fulfill demand while maximizing
pallet capacity. First-In-First-Out (FIFO) system is also used for selecting the pallet to be delivered
first. This ensures that older inventory is used first and production remains continuous. Since
deliveries occur at the end of each month, and production operates over four weeks, a total of four
pallets per month is required, that is two for regular pads production and two for overnight pads
production.
Designing the Rack System
For the VeraNa manufacturing warehouse, we will not be using a racking system. Instead,
storage will be based solely on floor stacking of full pallets, each containing 110 boxes for the
Regular variant and 88 boxes for the Overnight variant. Despite the absence of physical racks, we
are adopting the selective system conceptually, as it is the simplest and most straightforward
storage method. In a selective system, each pallet occupies a single, dedicated position and is fully
accessible without needing to move other pallets. This setup aligns with our low-volume, twoSKU operation and ensures ease of inventory rotation, efficient handling, and clear segregation of
product variants. It also allows for flexibility in pallet arrangement while maintaining the benefits
of individual pallet access and organized storage.
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Figure 9
Selective Floor Stacking System Illustration
The chosen floor pallet storage layout using a selective system without racking is the most
practical and strategic option for VeraNa Manufacturing at this stage. It offers easy access to every
pallet, which supports First-In, First-Out (FIFO) inventory management, essential for ensuring
product freshness and traceability. Since each pallet holds a single SKU and is individually
accessible, it also allows flexibility in handling mixed product types, such as Regular and
Overnight sanitary pads. As a startup company, avoiding the upfront costs of installing steel
racking makes this approach cost-effective while still maintaining operational efficiency. This
simple yet organized layout ensures smooth handling, quick access, and ease of stock rotation,
making it a smart and scalable solution for VeraNa’s current warehousing needs.
Here is a list of advantages for using floor pallet storage with a selective system (no
racking) for VeraNa Manufacturing:
● Easy access to every pallet (supports FIFO system)
● Flexible for storing mixed SKUs (Regular and Overnight variants)
● Cost-effective setup, ideal for startup companies
● Simple and easy-to-manage layout
● No need for racking infrastructure or complex installation
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● Quick to set up, relocate, or expand as needed
● Reduces initial capital investment
● Minimizes maintenance costs
● Allows clear visibility and separation of product types
● Efficient for small-scale and low-SKU operations
Determine:
● Number of rack levels (tiers) = 5 layers
● Number of pallet positions per bay = 4 pallets horizontally
● Aisle width (for equipment like forklifts) = 3.5 meters
● Maximum rack height based on standard warehouse dimensions = 1200 mm
Based on the monthly production volume and pallet capacity, VeraNa Manufacturing will
only need a total of 4 pallets to store its finished goods for both Regular and Overnight sanitary
pads, assuming deliveries to distributors are conducted monthly. For the Regular variant, the
monthly production is 6,708 packs, which is equivalent to 186 boxes (since 1 box contains 36
packs). Given that 1 pallet can hold 110 boxes of Regular pads (22 boxes per layer × 5 layers),
only 2 pallets are required to store the entire monthly output of Regular pads. Similarly, the
Overnight variant has a monthly production of 6,168 packs, or 172 boxes. Since 1 pallet for
Overnight pads can hold 88 boxes (22 boxes per layer × 4 layers), 2 pallets are also sufficient for
storing the entire batch. This efficient use of pallet capacity ensures that floor space is optimized
without the need for additional storage infrastructure, making it highly practical and cost-effective
for the company’s current scale of operations.
Create a Warehouse Layout Plan
The VeraNa warehouse is designed to ensure an efficient and organized flow of
materials from receiving to shipping. At the front of the facility, there are two parking spaces that
can each accommodate an L300 vehicle, positioned directly in front of the receiving bay. Upon
arrival, raw materials are unloaded at the receiving bay and transferred to the designated unloading
area.
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From the unloading area, trolley pathways branch into two directions depending on the
destination. One pathway leads to the storage areas, where raw materials are kept until needed,
while the other leads directly to the production area for immediate use. The production area has a
dedicated pathway to allow smooth delivery of raw materials without interfering with other
warehouse operations.
Once manufacturing is completed, products move to the packaging area, which is located
adjacent to the production area for convenience. Packaged goods are then transferred to the
finished goods pallet zone situated just outside the packaging area. From here, products follow a
dedicated pathway to the loading area and shipping bay, where they are prepared for dispatch. The
shipping section also has two parking spaces that can accommodate two L300 vehicles, facilitating
efficient loading and transport.
Support facilities within the warehouse include a Quality Assurance (QA) office located
near the receiving and unloading area to inspect and verify the quality of incoming materials.
Additionally, there is an employee office to accommodate administrative tasks and operational
coordination. This overall layout allows for a logical, one-directional workflow that minimizes
congestion and handling time while maintaining quality control at every stage.
Figure 10 exhibits the warehouse layout plan below.
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Figure 10
VeraNa Warehouse Layout
Capacity and Space Utilization Analysis
The total warehouse area measures 227 square meters, which includes the quality assurance
area and the office area, but it does not include the packaging area. Within this space, the
designated storage areas consist of the air-conditioned and ventilated banana trunk storage room
as well as the refrigerator containing the jugs of aloe vera extract which takes up 18 square meters,
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the shelf storage (3.5 sqm), the 8 raw material pallets occupying 35.75 sqm, and the 4 finished
goods pallets occupying 17.5 sqm, for a total storage area of 74.75 sqm.
When compared to the total warehouse size, this results in a space utilization efficiency of
32.93%, indicating that less than one-third of the warehouse floor area is currently being used for
storage purposes. While this figure may seem low, it is actually beneficial for operational
efficiency. A utilization rate of around 30% means there is ample room for movement, allowing
trolleys to navigate easily without obstruction. It also ensures that pallets and storage areas are not
cramped together, reducing the risk of damage to goods and enabling safer, faster handling of
materials. This layout supports smoother workflow, easier access to stored items, and better
compliance with safety standards.
Documentation and Report
Executive Summary of Design Concept
The warehouse layout for VeraNa Manufacturing was developed to apply facility layout,
material handling, and storage system principles in supporting the efficient production and
distribution of a low-volume, two-SKU sanitary pad product line. The Regular and Overnight
variants are both made from biodegradable materials but differ in size, weight, and packaging
dimensions, which guided decisions in storage configuration and handling methods.
Given the modest production volume, requiring only four finished goods pallets per month,
the design adopts a floor-stacking arrangement based on the selective storage concept without
installing racking. This approach provides full pallet accessibility, supports FIFO inventory
management, and allows flexible handling of mixed SKUs while minimizing capital investment.
Raw materials are allocated to specialized storage zones, including ventilated shelving for banana
pseudo-stems, refrigerated storage for aloe vera extract, palletized storage for rolls and packaging,
and powder-coated shelving for adhesives and retail boxes. Finished goods are stored on ISOstandard pallets configured to remain within height and weight limits, ensuring stability and
handling safety.
The warehouse layout follows a one-directional material flow to minimize congestion and
enhance operational efficiency, with clearly defined areas for receiving, quality assurance, raw
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material storage, production, packaging, finished goods staging, and shipping. Aisle widths, pallet
positions, and the use of manual forklifts, pallet jacks, and trolleys are planned to match operational
requirements and maintain safety. Space utilization is currently at 29.3%, which provides ample
room for maneuverability, smooth handling, and future expansion.
Overall, the design delivers a cost-effective, organized, and scalable warehouse layout that
supports smooth workflow, maintains product quality, and accommodates future growth while
aligning with VeraNa Manufacturing’s sustainable and efficient production objectives.
Calculation and Drawings of Storage Requirements
This section presents the computations and visual representations necessary to determine
the optimal storage configuration for the project’s raw materials and finished products. Pallet
layouts, shelving arrangements, and rack capacity calculations are illustrated through scaled
drawings to provide a clear understanding of how the required quantities can be accommodated
within the available storage area. These storage plans also take into account the physical
characteristics of each material, including size, and shape.
First, for the storage of top and bottom sheet rolls, each roll measures 0.3 m in width and
has a diameter of 0.3 m. Monthly requirements total 30 rolls for each, which are stored on pallets
measuring 1.2 m by 1.0 m. The pallet arrangement, as illustrated in the accompanying diagram in
Figure 11, allows the rolls to be placed in a stable configuration that optimizes floor space while
maintaining ease of access. There will be 12 rolls per layer and 3 layers in total.
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Figure 11
Top and Bottom Sheet Rolls Computation and Visualization
Second, the storage for individual packaging will also be a 1 m by 1.2 m pallet. The
requirement per month results in 12 boxes, each box containing 10,000 pieces. With each box
measuring 1 m in length, 1 m in width, and 0.5 m in height, the packing configuration allows six
boxes to be stacked per pallet. Given this arrangement, the total storage requirement amounts to
two pallets, each reaching a height of 3 m when fully loaded as shown in Figure 12.
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Figure 12
Individual Packaging Computation and Visualization
The next diagram shows a 2.5 m by 2.5 m shelf. This 4-tier shelf will be storing three raw
materials which are the release paper adhesives, the wrapping adhesives, and the retail boxes.
Computed below in Figure13 are the required number of boxes per raw material. Results showed
that a total of 17 boxes with the dimensions of 0.5 m x 0.5 m x 0.5 m required to be stored. This
configuration fits the 2.5 by 2.5 shelf with each tier having 5 boxes.
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Figure 13
Raw Materials Shelf Computation and Visualization
Finally, for the storage of banana trunks, a metal shelf will be used. The shelf’s dimensions
are 4 m x 2 m x 2m. This dimension is designed to cater the required 62 trunks per month. As
computed in Figure 14, the shelf will have five racks with approximately 13 trunks on each rack.
This configuration secures that the 62 trunks will be properly stored in the warehouse.
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Figure 14
Banana Trunks Metal Shelf Computation and Visualization
Justification for Design Decisions
The warehouse layout was designed to balance storage capacity, material flow efficiency,
and safety. With a total area of 227 sqm, including the quality assurance and office areas, the
storage allocation was carefully planned to accommodate both raw materials and finished goods
without creating congestion. The designated storage zones, comprising the climate-controlled
banana trunk storage, aloe vera refrigerator, shelving for smaller items, and palletized storage for
both raw and finished products, occupy 74.75 sqm, resulting in a space utilization efficiency of
32.93%. Although this figure is below half of the available space, it is intentionally maintained to
allow for clear pathways, unobstructed trolley and pallet jack movement, and compliance with
recommended clearance standards.
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The use of standard ISO pallets (1200 mm × 1000 mm) ensures compatibility with
material-handling equipment and optimizes stacking. Raw materials are stored on eight pallets
occupying 35.75 sqm, while finished goods are allocated four pallets covering 17.5 sqm. The
unloading and loading areas, sized at 13.5 sqm each, are strategically positioned adjacent to the
receiving and shipping docks to minimize handling time and streamline inbound and outbound
logistics. Pathways are set at a minimum of 1 meter, which is sufficient given the use of only two
trolleys and one pallet jack, ensuring safe and efficient navigation.
Special storage requirements are addressed through the climate-controlled banana trunk
storage area, which maintains product quality, and the refrigerated section for aloe vera jugs to
preserve freshness. The positioning of these facilities near the production area shortens travel
distance for high-frequency retrievals. Additionally, the separation of raw material and finished
goods pallets reduces the risk of cross-contamination and improves inventory organization.
The central pallet arrangement, bordered by accessible pathways, supports smooth material
flow between unloading, production, and packaging areas. This design also minimizes double
handling and supports FIFO inventory rotation. Open floor space further contributes to safety, as
it reduces collision risk, improves visibility, and allows for future expansion of racking if demand
grows. Overall, this warehouse configuration promotes operational efficiency, protects product
integrity, and ensures compliance with ergonomic and safety standards.
Challenges Encountered and Recommendations
Designing an efficient warehouse layout with a racking system and pallet configuration
presents several challenges, even for a low-volume, two-SKU operation like VeraNa
Manufacturing. One major challenge is balancing space utilization with ease of access,
maximizing pallet capacity while ensuring that manual handling and trolleys can move freely
without congestion. Another is product segregation to prevent SKU mixing, which becomes
critical when both Regular and Overnight variants share storage zones. Pallet compatibility must
also be managed to ensure stability, proper stacking heights, and compliance with load limits. In
addition, planning for future scalability is essential, as the current floor stacking system, while
cost-effective now, may limit capacity if production volume grows. Finally, workflow efficiency
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and safety compliance must be maintained, requiring clear aisles, logical material flow, and
adherence to ergonomic and fire safety standards. To address these challenges, it is recommended
that VeraNa maintains its selective floor stacking system in the short term but considers
transitioning to low-tier selective racking or drive-in racks if demand increases. Moreover,
implementing clear visual markings and signage will help maintain SKU segregation and efficient
movement paths. Regular pallet quality inspections, along with adherence to maximum stacking
heights, will ensure stability and worker safety. Allocating contingency space for future rack
installations will also allow the warehouse to scale smoothly without major redesigns.
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