Improving material flow by developing new warehouse layout

Abstract

Our group was tasked to develop a facility layout for Duncan Ticking's new warehouse and determine appropriate shelving as well as material handling equipment. Duncan Ticking is a reseller of textiles and currently operates two warehouses in Fort Worth. Both are currently full of inventory. The company purchases ticking from international suppliers and resells them to domestic manufacturers. Demand is forecast for products they import based on sales history. As customers change styles and patterns, some products no longer sell at the same volumes, and they are left with the balance to try and sell elsewhere. The company plans to build a new warehouse adjacent to two existing ones, hoping to relieve some of the congestion and to improve the storage and flow of goods. The reseller is seeking assistance to design a facility layout for the additional warehouse. The goal of the project is to develop three recommendations for the proper shelving and supporting material handling processes and devices along with corresponding layouts. A cost-benefit analysis of each of the alternatives will be developed and presented to the client. The primary objectives are to minimize the travel of material and personnel within the warehouse and ensure that the incoming and outgoing orders are processed efficiently and effectively. Time permitting, an inventory analysis will also be conducted throughout the current warehouses along with a plan to implement new storage policies, disposal of unused equipment and materials for more than three years old, along with a cost-benefit analysis of our recommendations.