Warehouse and Distribution: Layout, Allocation Criteria, and Picking Methods

WAREHOUSE AND DISTRIBUTION
WAREHOUSE AND DISTRIBUTION
NAME OF STUDENT
NAME OF UNIVERSITY

DISTRIBUTION 2
Background.
The warehouse will be located in a Brisbane city that has population of 2.3 million people in
2017 ,whose median age is 35 years and population is projected to grow by 2% every year
(Abs.gov.au, 2016). According to WebAlive (2019) last year, 9% of retail shopping is done online
in Australia and is projected to grow by 5%.
The city is growing and there are noticeable lage scale real estate projects coming up in the
surburbs. There are also redevelopments on the older estates ,where entire buildings are being
knocked down and high rise buildings being preferred.
Bunnings offers a wide variety of hardware tools to end consumers at the retail level.
As Bunnings intends to have an online shop,then what we need is an easy to use website which will
be the main interaction point for clients. However , the real work is delivering the goods to the
clients in the most efficient manner.
The warehouse layout will be key in delivery this seamless customer experience.
The hardware product range has the following characteristics;
a) We have fast moving products like hand tools and slow moving items like timber
b) We have items that require a lot of space like timber while others require less space
like paint.
c) We have items that carry a lot of weight like steel while others are lightweight like
lighting and fixtures.
This mix of products will require a variety of shelving options,hooks and stacking.
The products will have to be located where they are easy to locate,retrieve and restock with
minimal interruption of other activities in the warehouse. Since there will be a lot of activities in
the warehouse and distribution centre ,it is key that the layout of the warehouse will be in such way
that all these activites can be performed without creating bottlenecks.
My proposal is to categorise the goods into the following for space allocation;
a) Weight
b) Sales turnover
c) Space requirements
d) Retrieval and evacuation methods.
e) Office space.
Space requirements.
The total space required is 20,000 square foot and a height of 56 feet. This will hold stock that
can meet demand in a typical month as forecasted in the medium term. The lifting equipment that
is normally available in the market can reach that maximum height ((NextLevel Storage Solutions,
2017). The store will be on two levels . The second level will host the offices ,light and fast moving
goods. The ground level will be for heavy and bulky items.

DISTRIBUTION 3
Allocation criteria
Weight Description
A Fast moving
These are goods that spend less than a week before
an order is received.
B Moderate
These are goods that spend less than a month before
an order is received.
C Slow moving
These are goods that spend more than six months
before an order is received.
Size
1 Small
Any item that weighs below 5 Kgs and can be
transported by a motor bike.
2 Medium
Any item that weighs between 5-20 Kgs and can be
transported by a pick-up truck.
3 Bulky
Any item that weighs above 20 Kgs and can be
transported by a pickup truck and trucks.
Aggregate Allocation criteria
First
level A1
Ground
level
A2,A3,B1,B2,B3,
C3
The classification is for fulfilment of client orders.
Floor Level allocation
Category
code
Product
category
Classification
By Weight
Classification
By Size
Aggregate
classification
Level
allocation
1 Timber C 3 C3 Ground level
2 Doors C 3 C3 Ground level
3 Steel B 3 B3 Ground level
4
Building
materials B 3 B3 Ground level
5
Plumbing and
bathroom B 3 B3 Ground level
6 Flooring A 2 A2 Ground level
7 Drapery A 2 A2 Ground level
8 Cleaning A 2 A2 Ground level
9 Storage A 2 A2 Ground level
10
Lightning and
electrical A 2 A2 Ground level
11 Landscape B 3 B3 Ground level
12 Leisure B 3 B3 Ground level
13 Indoor timber B 3 B3 Ground level