WAREHOUSING SYSTEMS DESIGN

WAREHOUSING SYSTEMS DESIGN
GROUP PROJECT – W2024
BRIEF DESCRIPTION OF THE COMPANY’S CONTEXT
Aromatica Imports Co. is renowned for importing and distributing exclusively in Canada nonperishable gourmet selections and culinary specialties from six international manufacturers with
whom Aromatica has signed long-term distribution agreements. Aromatica distributes a wide
range of specialty teas, dried aromatic herbs and exotic seasonings, which are highly prized by
fine grocery stores and organic food retailers. Currently, Aromatica manages its operations from
a Montreal-based warehouse, which is facing saturation of its storage space due to sustained
growth. To improve logistics and service for all its Canadian customers, the company plans to open
a new distribution center.
The company forecasts annual sales growth of 6% over the next four years, as well as a 2% annual
increase in the number of stock-keeping units (SKUs). The construction of the new distribution
center should not only increase operational efficiency, but also position Aromatica Imports Co. as
a leader in the distribution of specialty food products, while committing to an eco-responsible
approach and optimization of logistics costs.
PROJECT DESCRIPTION
As a warehousing system consultant, your task is to design this new distribution center.
To help you in your task, you have the following information at your disposal:
• List of products with their physical characteristics. Items are grouped into six families (A to F)
according to their physical characteristics. Each family is associated with a different supplier.
• An extract from the sales file for the first six months of 2023.
• The company plans to maintain an average stock level of twelve weeks (60 days’ sales) at this
new center, which you should use as a basic assumption for planning storage space
requirements.
• The distribution center will be replenished weekly from its six overseas suppliers. As the
products are not very heavy, shipments may contain up to 40 pallets per trailer.
• Demand for items does not fluctuate significantly from month to month.
• There is no equipment to reuse (greenfield design).
• The average basic wage for employees should be $15.75/hour, with social costs of 23.8%.
• The construction expenses can be estimated at approximately $100 per square foot, covering
all aspects except for the storage and handling systems.
You must prepare your consultation report including:
• Your analysis of the anticipated situation.
• Your recommendations on operational processes (receiving, storage, order picking,
shipping).
• List of equipment required.
• Budget plan for equipment purchases.
• Proposed layout plan.
• Global product positioning plan (pre-slotting).
o Assignment of items to module type(s) for order-picking and storage operations.
o Capacity reserved for each item in the order-picking area.
• Estimated manpower requirements.
60 72 84 96 108 120 132 144
Single-deep (3 pallets high) 11.14 11.96 12.79 13.61 14.44 15.26 16.09 16.91
Single-deep (4 pallets high) 8.35 8.97 9.59 10.21 10.83 11.45 12.07 12.68
Single-deep (5 pallets high) 6.69 7.18 7.67 8.17 8.66 9.16 9.65 10.15
Single-deep (6 pallets high) 5.57 5.98 6.39 6.81 7.22 7.63 8.04 8.46
Double-deep (3 pallets high) 9.08 9.49 9.9 10.31 10.73 11.14 11.55 11.96
Double-deep (4 pallets high) 6.81 7.12 7.43 7.73 8.04 8.35 8.66 8.97
Double-deep (5 pallets high) 5.45 5.69 5.94 6.19 6.44 6.68 6.93 7.18
Double-deep (6 pallets high) 4.54 4.74 4.95 5.16 5.36 5.57 5.78 5.98
Push-back (2 pallets deep x 3 pallets high) 9.08 9.49 9.9 10.31 10.73 11.14 11.55 11.96
Push-back (3 pallets deep x 3 pallets high) 8.39 8.66 8.94 9.21 9.49 9.76 10.04 10.31
Push-back (4 pallets deep x 3 pallets high) 8.04 8.25 8.46 8.66 8.87 9.08 9.28 9.49
Push-back (5 pallets deep x 3 pallets high) 7.84 8,00 8.17 8.33 8.50 8.66 8.83 8.99
Push-back (6 pallets deep x 3 pallets high) 7.7 7.84 7.98 8.11 8.25 8.39 8.53 8.66
Push-back (2 pallets deep x 4 pallets high) 6.81 7.12 7.43 7.73 8.04 8.35 8.66 8.97
Push-back (3 pallets deep x 4 pallets high) 6.29 6.5 6.7 6.91 7.12 7.32 7.53 7.73
Push-back (4 pallets deep x 4 pallets high) 6.03 6.19 6.34 6.5 6.65 6.81 6.96 7.12
Push-back (5 pallets deep x 4 pallets high) 5.88 6,00 6.13 6.25 6.37 6.50 6.62 6.74
Push-back (6 pallets deep x 4 pallets high) 5.78 5.88 5.98 6.08 6.19 6.29 6.39 6.50
Flow rack (2 pallets deep x 3 pallets high) 11.14 11.96 12.79 13.61 14.44 15.26 16.09 16.91
Flow rack (3 pallets deep x 3 pallets high) 9.76 10.31 10.86 11.41 11.96 12.51 13.06 13.61
Flow rack (4 pallets deep x 3 pallets high) 9.08 9.49 9.9 10.31 10.73 11.14 11.55 11.96
Flow rack (5 pallets deep x 3 pallets high) 8.66 8.99 9.32 9.65 9.98 10.31 10.64 10.97
Flow rack (6 pallets deep x 3 pallets high) 8.39 8.66 8.94 9.21 9.49 9.76 10.04 10.31
Flow rack (2 pallets deep x 4 pallets high) 8.35 8.97 9.59 10.21 10.83 11.45 12.07 12.68
Flow rack (3 pallets deep x 4 pallets high) 7.32 7.73 8.15 8.56 8.97 9.38 9.80 10.21
Flow rack (4 pallets deep x 4 pallets high) 6.81 7.12 7.43 7.73 8.04 8.35 8.66 8.97
Flow rack (5 pallets deep x 4 pallets high) 6.50 6.74 6.99 7.24 7.49 7.73 7.98 8.23
Flow rack (6 pallets deep x 4 pallets high) 6.29 6.50 6.7 6.91 7.12 7.32 7.53 7.73
Drive-in (2 pallets deep x 3 pallets high) 9.26 9.74 10.22 10.7 11.18 11.66 12.14 12.61
Drive-in (3 pallets deep x 3 pallets high) 8.47 8.78 9.1 9.42 9.74 10.06 10.38 10.70
Drive-in (4 pallets deep x 3 pallets high) 8.07 8.31 8.55 8.78 9.02 9.26 9.50 9.74
Drive-in (5 pallets deep x 3 pallets high) 7.83 8.02 8.21 8.4 8.59 8.78 8.97 9.17
Drive-in (6 pallets deep x 3 pallets high) 7.67 7.83 7.99 8.15 8.31 8.47 8.625 8.78
Drive-in (2 pallets deep x 4 pallets high) 6.95 7.31 7.67 8.03 8.39 8.74 9.10 9.46
Drive-in (3 pallets deep x 4 pallets high) 6.35 6.59 6.83 7.07 7.31 7.55 7.79 8.03
Drive-in (4 pallets deep x 4 pallets high) 6.05 6.23 6.41 6.59 6.77 6.95 7.13 7.31
Drive-in (5 pallets deep x 4 pallets high) 5.87 6.01 6.16 6.3 6.44 6.59 6.73 6.88
Drive-in (6 pallets deep x 4 pallets high) 5.75 5.87 5.99 6.11 6.23 6.35 6.47 6.59
Bulk (2 pallets deep x 2 pallets high) 14.85 15.53 16.2 16.88 17.55 18.23 18.90 19.58
Bulk (3 pallets deep x 2 pallets high) 13.73 14.18 14.63 15.08 15.53 15.98 16.43 16.88
Bulk (4 pallets deep x 2 pallets high) 13.16 13.5 13.84 14.18 14.51 14.85 15.19 15.53
Bulk (2 pallets deep x 3 pallets high) 9.9 10.35 10.8 11.25 11.70 12.15 12.60 13.05
Bulk (3 pallets deep x 3 pallets high) 9.15 9.45 9.75 10.05 10.35 10.65 10.95 11.25
Bulk (4 pallets deep x 3 pallets high) 7.78 9,00 9.23 9.45 9.68 9.90 10.13 10.35
Bulk (5 pallets deep x 3 pallets high) 8.55 8.73 8.91 9.09 9.27 9.45 9.63 9.81
Bulk (6 pallets deep x 3 pallets high) 8.4 8.55 8.7 8.85 9.00 9.15 9.30 9.45
Bulk (2 pallets deep x 4 pallets high) 7.43 7.76 8.1 8.44 8.78 9.11 9.45 9.79
Bulk (3 pallets deep x 4 pallets high) 6.86 7.09 7.31 7.54 7.76 7.99 8.21 8.44
Bulk (4 pallets deep x 4 pallets high) 6.58 6.75 6.92 7.09 7.26 7.43 7.59 7.76
Bulk (5 pallets deep x 4 pallets high) 6.41 6.55 6.68 6.82 6.95 7.09 7.22 7.36
Bulk (6 pallets deep x 4 pallets high) 6.3 6.41 6.53 6.64 6.75 6.86 6.98 7.09
Pallet flow rack
Drive-in pallet rack (48 inches wide)
Bulk storage (48 inches deep)
Floor space per pallet (ft2
/pallet)
Storage system Aisle width (inches)
Single-deep pallet rack
Double-deep pallet rack
Push-back pallet rack