solution

1. You are required to produce a distribution centre design to accommodate the following detailed scenario.

Scenario

• Sector – Retail
• Operating hours – 2 shifts, 8 hours a day Mon-Fri, 6.30am – 11.30pm
• Volumes – relatively constant, seasonal 20% peaks in Apr/May and Oct/Nov.
• Growth – 5% per annum.
• Design timeline – 5 years
• Products – 5,000 SKU’s
  • 60% Palletized.
    • Each SKU has 1 pick location and an average 5 replenishment/storage locations.
    • Each pallet is ‘Standard US’ (40 inch x 48 inch) built 48 inches high.
  • 30% Shelving. Each SKU has an average dimension of 12 inch x18 inch x10 inch and an average quantity holding of 20 items, no replenishment locations.
  • 10% Bulk. Each SKU has an average dimension of 5 foot x 6 foot x 8 foot and an average quantity of 4 items, no replenishment locations.
• Storage:
  • Racking – 5 levels high, 96 inch bay width (2 pallets), and depth is 42 inch with 8 inch gap between back-to-back racking. Assume 200 foot lengths of racking and 13 foot aisle width.
  • Shelving – 10 foot high, 48 inch deep, configurable shelves. Assume 4 foot walkways between back to back shelving units. Assume 50 foot lengths of shelving
• Office Requirements – 20,000 sq/ft (Management, HR, Clerical, etc.)
• Ceilings – 40 foot clear
• Aisle widths – 13 foot
• Walkway widths – 4 foot

• Mechanical Handling Equipment:
  • Pump Jacks – 10
  • Single pallet Walkies – 20
  • Double pallet Walkies 10
  • Forklift Trucks – 15

• Other space considerations:

• Battery Changing
• Maintenance
• Returns/Inspection area
• Security
• Janitorial
• Staff Changing Rooms
• Washrooms
• Cafeteria
• IT
• Forklift and MHE parking
• Cardboard compactor
• Plastic wrap compactor
• Trash

2.

1. What is the square footage storage requirements for: Racking, Shelving, and Bulk.
2. How many square feet does the DC need to be to accommodate peaks and annual growth over the 5 year design timeline; the estimated space requirements for Racking, Shelving, and Bulk should be provided (only consider the actual space for storage, not the walkways and aisles). i.e. what is the expected storage percentage of a typical DC?
3. A DC plan showing the layout of the DC to scale with racking, shelving, and other requirements clearly shown with some commentary on why they have been allocated that space.