Group In-Class Exercise

Distribution Centre Design

Task

1. This is a group In-Class assignment, which will be assessed (8%). 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 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

Report

2. Submit soft copy to Brightspace (D2L Warehouse Design AICE) by 11.59pm Fri 1 Oct 2021, the report is to be formatted in Excel, use cells to indicate scale. Expectations are that the report will provide answers to the fundamental questions:

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.

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