Design Layout of Warehouse and Distribution Centre

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Assignment
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OMGT2104 2 25/03/2019 2413
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WAREHOUSE AND DISTRIBUTION CHANNELS
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College of Business M&BDU-12/08

EXECUTIVE SUMMARY
This report presents the proposed design layout of the warehouse/distribution centre and other
key elements that facilitate its operations. The warehouse has 18 SKUs and its expected
customer service level is high. The key factors considered when designing the layout are
available space, SKUs, accessibility, flow and throughput. The design layout enables safe,
efficient, fast and cost-effective operations at the warehouse. Key operations at the warehouse
include: receiving, put-away, picking, packing, dispatching, returns and value-added services
and dispatch. A wide range of storage and materials handling equipment systems have been
identified. The warehouse also has an integrated WMIS and it is highly automated using
state-of-the-art software technologies. The contact between human operators and products is
minimized. The warehouse is also expected to be world class by considering the element such
as legislation, safety/security and sustainability.
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TABLE OF CONTENTS
Executive Summary.................................................................................................................2
1. Introduction.......................................................................................................................4
2. Customer service levels.....................................................................................................4
3. Layout of the warehouse..................................................................................................5
4. Key warehouse/distribution centre operations...............................................................7
5. Types of storage systems...................................................................................................9
6. Picking operations...........................................................................................................10
7. Materials handling equipment systems.........................................................................11
8. Level of warehouse management information systems...............................................12
9. Level of automation in the warehouse operations.......................................................13
11. Conclusion....................................................................................................................13
References...............................................................................................................................15
Appendix ..............................................................................................17
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1. INTRODUCTION
The purpose of this report is to establish the most suitable design layout of a
warehouse/distribution centre that will be used to store, manage and supply products offered
by Electrolux – a leading electronics retailer, to dedicated stores in different parts of
Australia, such as The Good-Guys and Harvey-Norman.
Electrolux is a Swedish multinational manufacturer of home appliances. The company offers
a wide range of home (Electrolux, 2019). The main categories and types of products offered
by Electrolux include the following: refrigeration equipment (include refrigerators, freezers
and water coolers), cooking appliances (include cookers, cooktops, ovens, microwave ovens
and rangehoods), laundry (washing & drying) equipment (include washing machines,
dishwashers, drying cabinets, vacuum cleaners, drawers, washer dryers and clothes dryers),
heating and cooling equipment (include water heaters and air conditioners or ventilations)
and filters and accessories (including kitchen, laundry and cleaners accessories) (Electrolux,
2019). Therefore, the warehouse/distribution centre should be designed so as to accommodate
all these products. The SKU list is provided in Appendix 1.
The size of the empty space available for the establishment of the warehouse/distribution
centre is 20,000 m2. The design layout established should facilitate fast, safe and efficient
operations of the warehouse/distribution centre.
2. CUSTOMER SERVICE LEVELS
The warehouse/distribution centre is designed to ensure that all orders are delivered as
promised. The aim is to help the company meet or exceed customer expectations so that
customers can always be delighted and amazed by the products and services they receive.
There are different ways of describing customer care levels. The target customer care level
for the warehouse design layout in this report is most advanced and world class. This means
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