Facilities layout optimization and design principles

Facilities Layout

The objective of this study is to examine how flexibility can be built into warehouse planning and design to accommodate change for the future and what would be required as well as what would the trade-offs be with respect to allocation of resources up front or into the future.

According to the work of Supply Chain & Logistics Consulting Ltd., warehouse design states that the warehouse design that is effective is one that takes into account "a wide range of factors from all areas of the operation." (2012) It is reported that the scope of warehouse designing should "encompass inventory levels, cycle and variance in inventory throughout the business year, cost of space, warehouse o9perational management, cost of inventory transport and flexibility for future change adjustments in product or demand. The first reported step is to map the overall operations through collection process flow information and supporting data on inter-departmental transactional processes, company inventory strategy, planning constraints, plans and the proposed budget for the new facility.

I. Demands for the Facility Related to Operational Requirements

The demands for the facility related to critical operational requirements must be considered and specifically:

(1) Customer order lead-times;

(2) Space requirements;

(3) Inventory-volume, movements, number of SKUs

(4) Operational methods;

(5) Inventory and storage strategies;

(6) Inventory and locating control systems; and (7) WMS systems;

(8) Process, materials and information flows

(9) Transportation and materials handling needs

(10) Storage requirements and methods

(11) Pick face replenishment needs

(12) Planning constraints

(13) Cross docking and (14) Added value logistics. (Supply Chain & Logistics Consulting Ltd.)

The chosen layout is such that optimizes space utilization and operational efficiency as well as optimizing WMS systems and operations methods, materials handling systems and materials and information flows and setup and operations cost. In addition, versatility is optimized when storage needs require access to a large variety of items. The work of Baker (2009) entitled "Warehouse Design: A Structured Approach" reports the fact that despite "the importance of warehousing to the customer service and cost levels of many businesses, there is currently not a comprehensive systematic method for designing warehouses." (p.1) As well there are different types of warehouses including those that are heated and unheated general warehouses, refrigerated warehouses and controlled humidity warehouses. (Steven Winter Associates, 2011, p.1) Depending upon the type of warehouse, design considerations will be varied in nature. Depending on the program of the warehouse being designed, space types may vary dramatically. Designs may include such as storage space, office space, loading docks, light industrial space, and computer centers. Warehouse designs such be such that are based on both current and future needs and that serve the facilitation of changes in growth of the business and office population. The warehouse should be adapted to new functions and should accommodate the need for future loading docks, truck space, and car parking services. Accommodate need for future loading docks, truck space, and car parking spaces if space configuration changes through effective site design.