ACME Case Study

Baseline Analysis

This is a collaborative effort within your project group. Submit your typed responses to the questions below to the Canvas assignment.

$-$ Submit a single Word or pdf file that identifies the members of your team and shows all answers, with required detail.

$-$ Submit a single Excel file that shows the supporting analysis for your answers. Each problem should be on a separate worksheet and neatly organized and labeled.

Problem $1$: SKU Characteristics $$ Baseline

a$.$ Number of SKUs

b$.$ Average SKU cube in cubic feet

c$.$ Number of eaches per carton

d$.$ Pallet size $($length$,$ width, height$)$

e$.$ Number of cartons per pallet

Problem $2$: Order$/$Unit Quantities $$ Baseline

Calculate the numbers below and clearly indicate the data used and your rationale:

a$.$ Average number of units $($eaches$)$ sold individually per day $(249$ workdays per year$)$

b$.$ Average number of units sold in cartons per day

c$.$ Average number of units sold in pallets per day

Problem $3$: Flow$/$Labor Analysis $$ Baseline

a$.$ Assuming the average number of cartons received per day is equal to the total average number of cartons shipped per day $($Problem $2),$ determine the product flow through each department $($Slide $11).$ Break out this product flow by the load units $($i$.$e$.,$ eaches, cases, pallets$).$

b$.$ Provide a Functional Flow Network $($FFN$)$ for the current operations.

c$.$ If the pallets per hour and cartons per hour rates indicated in Slide $11$ are the productivity rates for one person, can you justify the number of full$-$time employees $($FTEs$)$ indicated by department in Slide $35?$ Start with Put Away $71\%$ of cartons are palletized and put in reserve, $29\%$ of cartons go to the forward area. Be sure to state any assumptions made.

Problem $4$: Inventory Analysis $$ Baseline

a$.$ The QTYONHAND data show a $$snapshot$$ of the inventory in the warehouse, probably at the end of the data period. Treat these values as if they are average inventory levels and determine the space utilization if there are $44098$ pallet equivalent locations in the warehouse $($slide $42).$

b$.$ Make an assumption about SKU to pallet openings. How many pallet, half$-$pallet and quarter$-$pallet positions would be required to hold this inventory $($see Slide $10)?$

c$.$ We do not know the storage configuration of the current warehouse, but using the information from part a$,$ determine a reasonable storage area layout that would hold the average inventory levels. Specify pallet rack dimensions $($lane depth and height$),$ and the number and length of picking aisles. Provide a simple graphic to illustrate your layout. Would your storage layout support the current policy of using the bottom rack level as a forward area? Because most convenient locations depend on shipping and receiving, clearly mark the locations of these on your drawing.

Problem $5$: Designing Based on Averages

a$.$ Briefly describe the problem you would encounter if you design the new warehouse based on projected average inventory levels and average flow.

b$.$ How do you plan to avoid the problem you described in part a$?$

Problem $6$: Forcasting Demand and SKU growth

a$.$ Create a SKU activity profile curve for baseline operations and indicate the percentage of lines $($picks$)$ that are generated by $20\%$ of the SKUs.

b$.$ Complete the table on Slide $42$ to indicate the projected future state of the warehouse operations. Indicate clearly assumptions you are making to fill out the table.

c$.$ Discuss the design impacts anticipated due to growth in number of SKUs, orders, lines, units and inventory levels. Do not just repeat the statements in the slides.

Problem $7$: Shipping and Receiving $$ Baseline

We do not know the configuration of shipping and receiving in the current facility, nor do we know the number of dock doors. Estimate how many dock doors in both shipping and receiving would be sufficient to handle the current flow calculated in Problem $2.$ This analysis should help you to specify these departments in the new facility.