Design of a Warehouse and Storage Solution

This assignment requires students to design a logistics and supply chain management system for a fictional company, considering various components such as planning base, supply chain diagram, distribution and inventory level optimization (DILO), activity schedule, delivery and receiving areas, storage requirements, picking strategies, resource plan, and annualized cost. The company will judge the design against criteria including cost (70%) and flexibility (30%).

Warehouse Case study
The assignment should be 3,000 words minus appendices, tables etc…and written in report
format.
 This coursework has a value of 50% and is to be completed by 18.00 on Sunday 3rd
December 2017. In addition to submitting it online through Turnitin, two hard copies must
be handed in to the Postgraduate Office. Late submission is subject to a 30% penalty
unless you have agreement from the course leader.
 The report will be marked based on the quality of arguments, critical thinking and range of
operations discussed.
 Please prepare your report in 12 point font (Calibri, Arial or Times New Roman are all
acceptable), with 1.5 line spacing and print it single sided. There should be a minimum of
10 academic references. Do not spiral bind.
 Include a front cover and a contents page.
Stinky Bathrooms Ltd is thinking about relocating their warehouse to the outskirts of North London.
Stinky Bathrooms sells bathroom furniture including bathroom suites (sinks, baths, showers and
toilets) and bathroom accessories (taps, radiators, shelves toilet roll holders, etc), as well as spare
parts for when things break!
The outline planning permission limits the building height to 12m
In order to be sure of selecting the best design the company has instigated a design competition as
part of the tendering process. The Company has issued the following data and guidance to all
competitors
Sales data
The products are categorised into 3 categories: bathroom accessories
Category Sales £/cu.m Number of
SKUs
Weeks stock
Bathroom
Accessories
30M 500 1000 4 weeks
Bathroom Suits 30M 100 1000 3 weeks
Spare parts 5M 1000 50000 12 weeks

Supply chain description
Inbound Logistics
The company receives inbound deliveries from 2 sources:
70 % of bathroom suites are sourced from the Far East, and 20% from Europe and the remainder
from the UK.
50% of the bathroom accessories are sourced from the UK, 30% from Europe and 20% from the Far
East
Spare parts are 100% sourced from the Far East.
Pallet configurations of inbound product (single SKU) permit a pallet cube of 1.44 cu.m
All inbound deliveries from the UK and Europe are palletised. Deliveries from the Far east are not
palletised.
Outbound Logistics
70% (by value) of outbound deliveries are destined for the firm’s retail outlets which are
predominantly located in the south of England. The remaining 30% (by value) are supplied to small
independent retailers distributed evenly across the UK
Location Ownership Distance (Miles)
Edinburgh Independent 392
Glasgow Own 390
Exeter Independent 208
Liverpool Independent 199
Manchester Own 187
Leeds Independent 173
Bristol Own 131
Birmingham Own 105
Ipswich Independent 82.8
Gatwick Own 75
Cambridge Own 60
Milton Keynes Own 42
Bluewater Own 41
Regent street Own 30
Welwyn Garden City Own 5
All stores are to be delivered to by 10:00am (despatched same day or day before) and are open for
360 days per year and within this constraint 7 days per week
All outbound despatches are palletised.
Outbound pallet configurations permit pallet cubes of 1.15 cu.m

Operations
The warehouse operates 7 days per week and closes for 1 week over Christmas
This data should be used calculate staffing levels
Order structure
Quantities per Orderline
Category Order size (order liners per order)
Own Independent
Bathroom
Accessories
25 10
Bathroom Suites 8 3
Spare parts 50 30
Category Quantities
Cases Eaches
Own Independent Own Independent
Bathroom
Accessories
5 1 10 5
Bathroom
Suites
0 0 3 3
Spare parts 0 0 50 30

Bathroom suites
14 days
1000 SKU
833 cu.m
Fast Medium Slow
15% SKU 35% SKU 50% SKU
50% cu.m 35% cu.m 15% cu.m
150 SKU 350 SKU 500 SKU
417 cu.m 292 cu.m 125 cu.m
Small Medium Large Small Medium Large Small Medium Large
% SKU 20% 50% 30% 30% 50% 20% 60% 30% 10%
SKUs 30 75 45 105 175 70 300 150 50
% cube 10% 40% 50% 20% 50% 30% 20% 30% 50%
Storage cube 583.1 2332.4 2915.5 816.34 2040.85 1224.51 349.86 524.79 874.65
plt equivilent
404.930
6
1619.72
2
2024.65
3
566.902
8
1417.25
7
850.354
2
242.958
3
364.437
5
607.395
8
plts per sku
13.4976
9 21.5963
44.9922
8
5.39907
4
8.09861
1
12.1479
2
0.80986
1
2.42958
3
12.1479
2

Accessories
28 days
1000 SKU
166 cu.m
Fast Medium Slow
20% SKU 30% SKU 50% SKU
50% cu.m 30% cu.m 20% cu.m
200 SKU 300 SKU 500 SKU
83 cu.m 49.8 cu.m 33.2 cu.m
Small Medium Large Small Medium Large Small Medium Large
% SKU 20% 60% 20% 20% 60% 20% 20% 60% 20%
SKUs 40 120 40 60 180 60 100 300 100
% cube 15% 60% 25% 15% 60% 25% 16% 60% 24%
Storage cube 348.6 1394.4 581 209.16 836.64 348.6 148.736 557.76 223.104
plt equivilent
242.083
3
968.333
3
403.472
2 145.25 581
242.083
3
103.288
9
387.333
3
154.933
3
plts per sku
6.05208
3
8.06944
4
10.0868
1
2.42083
3
3.22777
8
4.03472
2
1.03288
9
1.29111
1
1.54933
3

Spare Parts
84 days
50000 SKU
13.8 cu.m
Fast Medium Slow
12% SKU 38% SKU 50% SKU
12% cu.m 38% cu.m 50% cu.m
6000 SKU 19000 SKU 25000 SKU
1.656 cu.m 5.244 cu.m 6.9 cu.m
Small
Mediu
m Large Small Medium Large Small
Mediu
m Large
% SKU 50% 50% 0% 50% 50% 0% 50% 50% 0%
SKUs 3000 3000 0 150 150 0 12500 12500 0%
% cube 45% 55% 0% 45% 55% 0% 45% 55% 0%
Storage cube 62.5968 76.5072 0
198.223
2
242.272
8 0 260.82 318.78 0%
plt equivilent 43.47 53.13 0 137.655 168.245 0 181.125 221.375 0%
plts per sku 0.01449 0.01771 0 0.9177
1.12163
3 0 0.01449 0.01771 0%

Answer all 6 components below as failure to answer means failure to achieve that component’s
allocated marks
1) Develop a planning base (30%)
 Draw Supply chain diagram (5%)
 Develop a DILO (15%)
 Develop Activity Schedule (10%)
2) Design delivery and receiving areas (10%)
 Specify number of docks
 Specify receiving and despatch space requirements
3) Plan Storage (15%)
 Analyse storage requirements
 Align analysis to alternative forms of storage and rank
 Specify storage
4) Plan Picking (20%)
 Consider alternative picking strategies and rank
 State clearly assumptions and their justifications
5) Resource plan (5%)
 Develop spreadsheet for resource plan taking into account in/out flows, picking
strategies and equipment
6) Develop annualised cost (20%)
 Use resource plan for labour and equipment
 Warehouse layout for racking and other equipment
 Space requirement for building costs
Assessment Criteria
The company will judge the design against the following criteria
 Cost 70%
 Flexibility 30%