Reference no: EM132296573
The Kepko Manufacturing Company is planning to build a modern (small) warehouse in North Jackson, Ohio. Recent long-term sales agreement with 3 large companies in the North East Ohio Area has prompted the company to build and operate such a warehouse to ensure that the company will be able to make prompt and on-time deliveries to the three customers. The warehouse will be used to store the following 8 items. (see table 1)
|
Item
|
A
|
B
|
C
|
D
|
E
|
F
|
G
|
H
|
I
|
J
|
|
Received per day
L
Box (inch)*. W
H
Weight (lbs.). Days in Inventory Product Shape è
# of products/Box*
|
480
|
920
|
730
|
440
|
500
|
670
|
1050
|
1240
|
2800
|
2500
|
|
20
|
20
|
45
|
,42
|
42
|
42
|
45
|
45
|
20
|
20
|
|
15
|
15
|
24
|
20
|
20
|
20
|
24
|
24
|
15
|
15
|
|
12
|
12
|
16
|
32
|
32
|
32
|
16
|
16
|
12
|
12
|
|
0.85
|
1.12
|
1.95
|
2.28
|
1.72
|
3.20
|
3.35
|
2.90
|
0.55
|
0.42
|
|
1-2
|
1-3
|
2-4
|
3-4
|
1-3
|
2-3
|
1-3
|
2-4
|
2-4
|
3-4
|
|
R**.
|
R
|
R
|
R
|
C**.
|
R.
|
R .
|
C
|
R.
|
R
|
|
12
|
10
|
6
|
6
|
8
|
10
|
9
|
12
|
20
|
24
|
incoming material will be delivered to the proposed warehouse by standard trailer trucks from the two suppliers in New York and Charlotte NC. The warehouse after quality control and repacking will distribute the products, on a daily basis, to the major customers located in the following three general areas (see Figure 1). Note that the warehouse is designed to serve only these 3 areas and for now it is assumed that the primary function of the warehouse will be limited to serve only these clients.
a)- Sharon, PA and area within a radius of 20 miles from the center of the city}.
b)- Several small companies (customers) in Twinsburg Ohio and surrounding area c)- several mid-size companies near Salem Ohio (and area within 25 miles) which includes southern part of Mahoning county.
The company has provided the following preliminary information about the type of storage/distribution system they plan to build and planned flow of material into and out of warehouse.
1)-Material are shipped and received daily as follows:
a)- shipping to customers is scheduled 6:00 am to 3 pm
b) receiving from suppliers is usually on a random basis between 5am and 2:00pm
2)- The warehouse operates 5:00 am to 4:00pm, 6 days a week.
3)- Trucks used by the suppliers on average are 42' x 8.5' x 11' (L x W x H). Note that you can load a truck only for a height of 9'. (A 2' allowance for picking the top pallet/load on a stack).
4)- The size of the trucks for fast delivery to customers must be decided by the design Engineers
5- The time the material stays in inventory (shown in table 1) are rounded to the nearest number of days.
The Company has decided on two possible sites near interstate Route76. The area was recently converted to industrial park. The company is expected to finalize the site selection process in a few months. To expedite the project, they recently hired your facilities design team to develop detailed layout and design the warehouse unit. Specifically, they want you to determine the following and submit a comprehensive report on your findings/recommendations.
1. Location of the facility with the objective of minimizing the transportation cost
2. Size of the warehouse which will accommodate storage requirements at least for the next 10 years. The Company expects only a moderate increase (about 2.5% per year) in storage capacity requirement during the next 10 years.
3). The best storage arrangement for the six items in the table. The optimum arrangement is expected to minimize material handling cost. In preparing the layout, assume 12 ft aisle space is needed along with clearance of 3" between stacks, and one-foot overhead. It is desirable to use a modern rack system (1- 3 high). Note that we need a clearance of 6'' for rack supports.
4). Number of lift trucks (or other form of handling equipment required) 5). Storage dimensions, layout and cost of the system. (based of the # of Operators, Racks, ...needed)
6). Number and location(s) of shipping/receiving docks. A time study of loading and unloading time required per shipping/receiving will be conducted and result reported to the facilities design engineers.
7) Other information will be provided later.
8)- The size and number of trucks that the warehouse should use to accommodate daily fast delivery to the customers at minimum time and cost, The type, size and routing of the trucks will be decided by the design engineers.
WHAT IS REQUIRED.
1- 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 he trend is expected to continue for the next 10 to `15 years.
2- Determine the number and type/sizes of small trucks the company need to purchase for delivering material on a daily basis, to the customers.
3- Determine Number and skill level of workers required for the facility. 4-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.
Attachment:- Design project.rar