Distribution Centre Design

Task

1. This is a group In-Class assignment, which will be assessed (7%). In your group, 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 SKUs

60% Palletized.

Each SKU has 1 pick location and an average 5 replenishment/storage locations.

Each pallet is Standard US (40 inches x 48 inches) built 48 inches high.

30% Shelving. Each SKU has an average dimension of 12 inches x 18 inches x 10 inches and an average quantity holding of 20 items, no replenishment locations.

10% Bulk. Each SKU has an average dimension of 5 feet x 6 feet x 8 feet and an average quantity of 4 items, no replenishment locations.

Storage:

Racking - 5 levels high, 96 inches bay width (2 pallets), and depth is 42 inches 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 inches 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

Report

2. Submit soft copy to Brightspace (D2L AICE-2: DC Design) by 11.59pm Fri June 9^th 2023, the report is to be formatted in Excel, use cells to indicate scale; an Excel file has been attached in the assignments folder for groups to use to provide their solution. Expectations are that the report will provide answers to the fundamental questions:

a. How many square feet does the DC need to be to accommodate peaks and annual growth over the 5 year design timeline (think of the slide in the Warehouse Management PPT); the estimated space requirements for Racking, Shelving, and Bulk should be provided (only consider the actual space for storage, not the walkways and aisles). Show all calculations. ** Hint ** DC size should be somewhere between 500,000 and 1,000,000 sq/ft

b. 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.

Please ensure all group members, that contributed, are identified on the first page with SAIT registration numbers. Standard grading rubric for SCM Case Analysis applies.