Chapter 10

Warehouse Layout
Laying out a warehouse is like putting together a jigsaw
puzzle all the pieces have to be defined & assembled

Defining the pieces is the purpose of:
benchmarking,
profiling,
simplification,
computerizing, and
mechanizing the warehouse

Chapter 10
Warehouse Layout
5-STEP METHODOLOGY FOR WAREHOUSE LAYOUT

Required Inputs:
warehouse activity profile
performance goals for whse operations
definition & configuration of warehouse
processes
configuration of material handling &
storage systems


Chapter 10
Warehouse Layout
STEP 1: SPACE REQUIREMENTS PLANNING
(determine overall space requirements)

Compute & Summarize Space requirements for each process:


Process Floor Space
(sq ft)
Notes
Receiving Staging 30,000 Assume 80%
utilization
Pallet Storage 120,000 @ peak inventory
Case Picking 25,000
Broken Case Picking 15,000

Chapter 10
Warehouse Layout
STEP 1: SPACE REQUIREMENTS PLANNING
(determine overall space requirements)

Compute & Summarize Space requirements (continued):


Process Floor Space
(sq ft)
Notes
Packaging/Unitizing 15,000
Customizing 20,000 Assume 20% growth
in VAS
Accumulation/Sortation 30,000
Shipping staging 30,000

Chapter 10
Warehouse Layout
STEP 1: SPACE REQUIREMENTS PLANNING
(determine overall space requirements)


Process Floor Space
(sq ft)
Notes
Cross Docking 15,000
Warehouse Offices 15,000
Restrooms 5,000
Shipping staging 30,000
Subtotal 320,000
Interactive aisle 64,000 @ 20% of subtotal
TOTAL 384,000

Chapter 10
Warehouse Layout
Most difficult decision is what portion of peak storage
requirement to accommodate.

if duration is short
i.e.; ratio of Peak:Average is high
Temporary space (outside the warehouse)
should be considered
if the duration is long
i.e.; ratio of Peak:Average is low
Warehouse should be sized very near peak
requirements


Chapter 10
Warehouse Layout
Another important consideration:

Portion of warehouse locations that will be occupied

As utilization reaches 85 90% -- productivity and
safety decline dramatically


Chapter 10
Warehouse Layout
2
nd
Step Material Flow Planning
U-shaped Straight Thru Modular
U-shaped Flow:

Storage & Retrieval

Case
Picking
System
Sortation &
Accumulation
Material Handling Put Away
Unitizing
& Shipping
Cross Docking Receiving
Broken Case
Picking System

Chapter 10
Warehouse Layout

U-Shaped Flow Advantages:
Excellent dock utilization
Facilitates cross-docking
Excellent fork truck utilization
Enables 3 direction expansion
Excellent security
Is the benchmark for flow analysis

Chapter 10
Warehouse Layout
StraightThru Flow


RCVG STOR SELECT SHIP

Chapter 10
Warehouse Layout
StraightThru Flow

Lends itself to pure CROSS-DOCKING
when rcvg time & shpg times coincide

Disadvantage: difficult to use ABC storage &
dual command trips



Chapter 10
Warehouse Layout
MODULAR-SPINE DESIGN

Good for large scale operations where operations are so
large they merit stand-alone, uniquely designed buildings
l.E.: a low-bay air conditioned building for customized
operations such as monogramming, pricing, & marking;
Plus a rack supported building for a unit-load AS/RS; or
a low-bay shipping building equipped with high speed
sortation equipment.

Good approach for grocery distributors (modules are
dedicated to specific order flows and/or item popularity
designations.



Chapter 10
Warehouse Layout
MULTI-STORY LAYOUT

Employed where land is scarce:
like Japan or Europe
least desirable of layout designs
significant material handling challenges
bottleneck form in the flow


Chapter 10
Warehouse Layout
ADJACENT PLANNING: ie:

Receiving & Reserve Storage
Cross-docking & Shipping
Case Picking & Pallet Storage
Case Picking & Broken Case Picking
Picking & Customization
Customization & Unitizing




Chapter 10
Warehouse Layout
Warehouse Activity Relationship Chart:

1. Supervision
2. Safety
3. Material Flow
4. Work Flow
5. Material control
6. Equipment Proximity
7. Shared Space
8. Employee Health & Safety
9. Security
A. Absolutely necessary
E. Especially Important
I. Important
O. Ordinary Closeness
U. Unimportant
X. Undesirable
A
5
E
3
U
E
3
E
6
E
3
U
O
4
O
4
O
4
E
6
E
3
A
7
I
1
I
1
I
3
U
I
3
U
O
4
U
O
4
X
9
O
8
O
8
O
4
O
4
X
9
X
9
X
9
O
8
O
8
U
U
U
U
U U
U U
U
U U
U
U
Receiving
Inspection
ASRS
Bulk Storage
Pallet Rack storage
Rackable Order
Picking
Binnable Order Picking
Shipment Staging
Employee Services
Data Processing

Chapter 10
Warehouse Layout
PROCESS LOCATION:
High storage requirements use high bay areas &
Labor intensive processes go in low bay space:
Receiving
Broken case picking
Customization
Returns Processing
High bays can be mezzanined to create
multiple low-bay processes on the same foot
print.



Chapter 10
Warehouse Layout
EXPANSION & CONTRACTION PLANS
Requirements change &
Larger & smaller
Faster & slower
More & less variety
Taller & shorter
More & fewer people
More & less technology
This requires careful configuration layout to
include expansion & contraction plans for each
warehouse area