Solve the following Warehouse Layout Problem using by$-$hand calculations or Excel OM

Kasi, Inc. is a third$-$party logistics provider that offers specialized inbound logistics with off$-$site warehousing, order fulfillment, service parts management, and last mile delivery solutions for their customers. With the growth of their business, they have recently acquired a new facility for service expansion. They plan to provide their complete line up of services in the new facility. Starting from the scratch, the facility manager wishes to create a logical layout and has created a first pass layout to evaluate:

Kasi layout.jpg

Table of Distance between the Areas in Feet $($below$)$

Distances use a location internal to each area for the measurement. Read this chart as $"$It is $44$ feet from Off$-$site Warehousing $1$ in Area $1$ to Off$-$site Warehousing $2$ in Area $2"($The yellow highlighted text shows where the words in this statement come from:

TO$>$

FROM v

Off$-$site Warehousing $1$ in Area $1$ Off$-$site Warehousing $2$ in Area $2$ Last$-$Mile Delivery Staging in Area $3$ Order Fulfillment in Area $4$ Service Parts Management in Area $5$ Offices in Area $6$ Receiving in Area $7$ Shipping in Area $8$

Off$-$site Warehousing $1$ in Area $1-4488486472132136$

Off$-$site Warehousing $2$ in Area $244-446448648872$

Last$-$Mile Delivery Staging in Area $38844-7264484464$

Order Fulfillment in Area $4486472-4488136132$

Service Parts Management in Area $564486444-447288$

Offices in Area $67264488844-6444$

Receiving in Area $713288441367264-48$

Shipping in Area $81367264132884448-$

Table of Interdepartmental Trips Table $($below$)$

Read this chart in a similar manner as the one above: "There were $10$ daily trips on average from Off$-$site Warehousing $1$ to Off$-$site Warehousing $2"$ Note that these trip numbers don't change $-$ they would be the same regardless of which area the department was physically in$.($The yellow highlighted text shows where the words in this statement come from$)$

Looking at an existing facility in another region, the following average interdepartmental trips per day were counted. The new facility is expected to be similar to the existing facility in interdepartmental trips.

TO$>$

FROM v

Off$-$site Warehousing $1$ Off$-$site Warehousing $2$ Last$-$Mile Delivery Staging Order Fulfillment Service Parts Management Offices Receiving Shipping

Off$-$site Warehousing $1-10405005017$

Off$-$site Warehousing $24-352815022$

Last$-$Mile Delivery Staging $00-0010045$

Order Fulfillment $2048-06041$

Service Parts Management $00170-6012$

Offices $238113-56$

Receiving $332351153-4$

Shipping $0000150-$

Here is that data in an excel sheet: Warehousing Layout Excel Sheet$-1.$xlsxDownload Warehousing Layout Excel Sheet$-1.$xlsx

Assignment Questions:

Part $1$: What is the total distance traveled with this layout? $($Hint: It is multiplying the data in the same location in the two tables times each other in a manner similar to the textbook example or using Excel OM$.)$

Part $2$: Suggest a new layout that reduces total distance traveled by moving the departments around in the numbered areas with the exception of receiving and shipping which must stay in area $7$ and $8,$ respectively. You can use this image$/$document with additional instructions for your revised layout: Kasi Blank Layout Template Updated $(1).$docxDownload Kasi Blank Layout Template Updated $(1).$docx

a$)$ Show the new layout in the document you will submit

b$)$ Calculate the total distance traveled with this new layout $($Hint: The Interdepartmental Trips matrix does not change but the distances change between the departments based on your new layout, so update the Kasi Blank Layout Template Updated $(1).$docx Download Kasi Blank Layout Template Updated $(1).$docxDistance between the Areas in Feet table to reflect these changes them and then proceed to multiply the data in the same location in the two tables times each other as you did in Part $1$ if you are working the problem by hand.$)$

c$)$ Did your new layout reduce the feet traveled overall?

Part $3$: What are other factors Kasi should keep in mind as the company is planning the new facility layout? How can the layout impact service response logistics$?$