Advances In Industrial Engineering And Management (AIEM) 9(1) (2020) 6-13

Advances In Industrial Engineering And Management

(AIEM)
DOI: http://doi.org/10.7508/aiem.01.2020.06.13

ISSN: 2222-7059 (Print)

EISSN: 2222-7067 (Online)

ARTICLE
DESIGN OF ALTERNATIVE WAREHOUSE LAYOUT FOR EFFICIENT SPACE
UTILIZATION: A CASE OF MODJO DRY PORT
FasikaBete Georgise1,*, Bonde Assefa2, Habte Bekele1
1
Institute of Technology, Hawassa University, Hawassa, Ethiopia
2
College of Engineering & Technology, Bule Hora University, Oromia, Ethiopia
*Corresponding Author E-mail: [email protected]  

This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in
any medium, provided the original work is properly cited.

ARTICLE DETAILS ABSTRACT

Article History: Warehousing is the glue for supply chain coordination. This function has become more important in dry port
management in landlocked countries. Ethiopia is one of the landlocked countries use dry ports to mitigate related
Received 12 September 2019 challenges. Modjo dry port is one of the largest and currently more than 95% of freights flow and first dry port. The
Accepted 15 December 2019 flows of unstuffed containers in terminal increase the influences the warehouse operation, the existing dedicated
Available online 19 January 2020 volume of warehouse becomes beyond the dedicated capacity of the warehouse. The layout of the warehouse is
not standardized for the flow of freight inside the warehouse. Therefore, the study intends to propose the modified
scenarios for the existing warehouse layouts for the reduction of congestion from the warehouse and this, in turn,
reduces congestion from the terminal of the dry port. The primary and secondary data were collected to accomplish
the study. The primary data were collected by field observation, field survey and secondary data was collected by
documented data of dry port. Using analytical hierarchical procedure the Modjo dry port should have to use the
layout IV, II, I and III those have the composite weight of 31.63%, 29.199 %, 26.997 %, and 12.17% respectively as
well as AHP factors like suitability for travel, store space, proximity to inspection area, and accessibility for forklift
scores 7.93%, 51.47%, 5.41%, and 35.19% of priority vector respectively for the selection of alternative layouts.
Therefore, Modjo dry port and terminal should have to use pallet racks as per the alternative layout proposed.

KEYWORDS

Dry Port, Warehouse, Layout Design, Space Utilization.

1. INTRODUCTION within the supply chain. The complexity arises in the seaport system
because it is to the highest degree affected by changes in world trade
In fact, human needs are unlimited, but resources are limited. Due to expansion, supply chain, and logistics tendencies, improvement in
these reasons, sourcing the resources from different countries is one maritime transport, industrial development and communications with
option to fulfill the needs of human beings. These take place only; If a variety of players either internally or externally [3]. Dry port can be
there is international trade between different countries. However, used, according to Henttu, to compensate for the stress (congestion in
this performed by transporting bulk freight by the most dominant terminals).
mode of transportation known as maritime transportation. Therefore,
the logistics operators’ in shipping transport and other modes of Dry ports have become major elements of local, national and global
transportation than the truck are looking for an optimal solution for logistics systems in counties for international trade [4]. A dry port can
their competitive advantages; such multimodal networks will provide be defined as an inland setting with cargo-handling facilities allowing
reliable, green and economical solutions for their competition [1]. several functions to be carried out, for example, consolidation and
distribution, temporary storage, customs clearance, and the connection
Maritime transportation is used widely to distribute this bulk freight between transport modes. Dry ports contribute to container harbor
for different countries; Wherein, the dry and seaports have the most arrangements by transforming harbors’ stagnant supply chains into the
governing role in supply chain by acting as a warehouse and distribution adaptive business systems, which enhance harbor competitiveness and
center by engaging in many activities of loading and unloading freight; response dynamically in the international transport system [5].
this activities deliver different valuable functions for customers by
linking the supply chain as warehouse and distribution centers [2]. 1.1 Problem statement
These activities are performed in the warehouse and terminal of ports
for both developing and developed countries. Currently, the dry ports are becoming fundamental global supply chain
operations in order to enhance its competitiveness especially for those
There is a variety of definitions point out that the function of dry countries which did not have seaports which called landlocked countries.
ports is to support of the seaport operations in order to improve the However, recent studies have shown many non-coastal developing
competitiveness in a complex system in landlocked countries. Seaports countries continuously face the challenge of physical inaccessibility,
are a part of a complex system of supra system because they interact supply chain-related obstacles from the maritime and the high costs in
with internal and external subsystems to create an effective process their international business. Ethiopia is one of the landlocked countries

Cite The Article: FasikaBete Georgise, Bonde Assefa, Habte Bekele (2020). Design of Alternative Warehouse Layout for Efficient Space Utilization: A Case of Modjo Dry Port.
Advances In Industrial Engineering And Management, 9(1) : 6-13.
 Advances In Industrial Engineering And Management (AIEM) 9(1) (2020) 6-13

that use dry ports to mitigate related challenges. From those; Modjo dry A typical warehouse has different sections based on their work
port is one of the largest and currently more than 95% of freights flow contributions into functional areas that are planned to facilitate the
to this port and was the first dry port in Ethiopia started operations in material flow [9]. The main warehouse areas are receiving, reserve and
the first half of 2009. It is located at Modjo, nearly 75 km East of Addis forward storage, and shipping area. A typical warehouse has different
Ababa. According to the ESLSE, currently, ESLSE is administering seven sections based on their work contributions into functional areas that are
dry ports including Modjo dry port and it was found out that main planned to facilitate the material flow [9]. The main warehouse areas are
Services given at the Dry port are: handling the import-export good, receiving, reserve and forward storage, and shipping area.
loading and unloading import-export goods, containerizing goods and
unpacking containerized goods, serving as a temporary storage place,
giving weighbridge service, container wash and maintenance service,
custom clearance service, banking, and insurance service.

The holding capacities of this port are increased from 950 to 14,900
containers and still throughout containers have been increasing
extensively. This makes overcrowding of containers in the terminal of
dry port as well as in the warehouse of the dry port. Correspondingly,
the number of containers flowing to the warehouse of dry port increases
from year to year due to the percentage increase in the number
of customers which that takes the inspected containers from the
warehouse. However, due to increasing the number of containers that
flow to the warehouse becomes the beyond dedicated storage capacity
of an existing warehouse. So, deliverance time of freight to hands of
customers as well as inspection of freight in the warehouse grow to
be difficult; Due to lack of pallet rack, appropriate aisles and suitable
Figure 1: Typical warehouse functions and flows [9].
inspection area in warehouse. These further affected the accessibility
of freights from the warehouse as well as reduce the performance of
2.3 Theoretical frameworks for designing of warehouse
inspection, storage, picking and receiving and delivering time to hand
of customers.
Bartholdi [10] established Matson’s model to optimize volume utilization
instead of the floor utilization. He has proposed that make best use of the
To mitigate the challenges, the management of Modjo dry port was
volume exploitation is the superior aim in the current recent warehouse
increasing the number of warehouses and expanding total hectare land
since volume within a store is worth as much as floor space. To design
for the terminal of the dry port due to the corresponding increment of the
warehouse four essential points stated by [11], are warehouse design
flow of the container. However, some authors put the direction in how
is very complex task, researchers have recommended diverse number
the efficient use of available areas is more vital for the related challenges
of procedure to obtain optimal design of warehouses, these procedure
in warehouse. According to Gue, the methods employed from the design
are interconnected and reprise may be needed and finding an optimal
to the operational stage of a warehouse usage have been developed
result may not be likely since there are many possible results in each
to better utilize storage space. These approaches make economical
procedure. In summary Warehouse design is in three main areas:
warehouse system as well as give accesses to use the volume of space
determining the requirements, designing the material handling systems,
and facilitate picking and receiving stock from warehouse. Depending
and developing the layout [11]. Based on these main headlines following
on implication authors for mitigation of congestion from warehouse and
designing steps will be determined i.e. system requirements, define and
terminal of Modjo dry port; designing of alternative layouts of warehouse
obtain data, analyze data, establish unit loads to be used, determine
was taken as better option rather increasing land in hectare. Therefore,
operating procedures and methods, consider equipment types and
the study intends to propose the modified scenarios for the existing
characteristics, calculate equipment capacities and quantities, define
warehouse and layouts for reduction of congestion from warehouse and
services and ancillary operations, prepare possible layout, evaluate and
this in turn reduces congestion from the terminal of dry port.
assess, identify the preferred design. Operational strategies selection: it
is used for determining of how the warehouse will be operated on other
This research was conducted to assess the existing layouts of Modjo dry
design decisions, and therefore has to be considered in the design phase.
port warehouse and how the company was challenging, due to lack of
Decisions like the choice of different storage methods, whether or not
the pallet rack in the warehouse. Currently, the Modjo dry ports have
to do zone picking, and the choice of types of different order picking
become operational and more than 95% percent of import goods flow
methods. More detail operational policies, are not considered in design
through this port. However, the increments of the flow of freight from
phase. The number, size and composition of these zones should be
year to year further increase the congestion in the warehouse. So, the
determined during design of the warehouse in order to reduce picking
study was to propose alternative layouts to efficient space utilization in
time and distance [12].
the warehouse to accommodate more freight than existing warehouse.
So, the study has the specific objectives to assess the layouts of the
There are some important points that should be considered in designing
existing warehouses and its accommodation capacity, to calculate the
warehouses; As mentioned, warehouse design decisions are strongly
space utilized of the existing warehouse and to propose alternative
related to each other and it is difficult to separate them completely
facility layout for the warehouse to design modified alternative facility
from each other and define a border between them. Therefore, any
layouts for efficient space utilization in the warehouse of Modjo dry port.
classification of warehouse designing should not be considered as
unique, nor does it mean that any of the decisions should be made
2. LITERATURE REVIEW
independently. In addition, it is important that operational performance
measures be considered in the design phase since it is strongly affected
2.1 Warehouse as a distribution center
by the design decisions, and it can be very expensive or impossible to
change the design when the warehouse is actually built.
In transshipment center, storage is scarcely offered, arriving stuffs are
directly sorted and new tailored shipments are generated [6]. From
Even though there are varieties of researches that have been done
practical observation, in general a warehouse sixty five percent of the
about how to design a warehouse which some of them discussed above,
effective overheads are expended by order picking, which comprises
practitioners use the results of these researches really seldom. Rather,
the item picking to reload the forward area and to accomplish customer
they prefer to rely on their experience and expertise [13]. However,
order. Customersalways relay on timely processing and inspection
many designers follow their own methods or procedures to design the
performance to get their requirements at right time. Minimize delay
warehouse. Some of their ideas are interrelated, but others are different
[7] is base for reduction of extra time cost. Kovács [8] demonstrates
according by their type, functionality and product or process flows in
the conflict between minimizing the maximum of response time and
warehouse. All designers provide their own theoretical framework for
minimizing the average response time.
warehouse design. Even if they have no similar theoretical frame work
most of their concept followed are close related to reach modified layout.
2.2 Functional areas of warehouse

Cite The Article: FasikaBete Georgise, Bonde Assefa, Habte Bekele (2020). Design of Alternative Warehouse Layout for Efficient Space Utilization: A Case of Modjo Dry Port.
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2.4 Standards of containers and pallets with their specified interview. The interviewees incorporated four seaport managers,
parameters two warehouse managers, one dry port managers, three government
managers and also logistics and distribution manager whereas,
Standard containers Steel box which accommodate the freight or cargo secondary data were collected from the journals, reports, and websites.
inside of it and has the capacity of accommodating the number of pallets Depending on this data the researchers executed a modified alternative
with its respective dimensions. Two standard types of containers are layout to propose improved storage and agile sorting in the warehouse
twenty equivalent unit containers (TEU), which has 20 feet length, due to the provision of facilitated efficient layouts for the operation. To
8’6” feet high and 8 feet wide. The second one is forty equivalent unit design layout different types of software are available. However, some
containers (FEU), which has 40 feet length or 20 feet long, 8’6” feet high are not easily available and others are freely available but, not suitable
and 8 feet wide. Pallet is made by wood or steel which handle efficient to model the angled or fishbone arrangement aisles to draw the layout
unit load. of the warehouse. Therefore, the researchers are preferred the AutoCAD
to model alternative layouts. Here, a layout improvement procedure for
given space, like CRAFT and ALDEP technique is not applied; because
the dedicated floor space of the warehouse is predominantly determined
for the storage. I.e. rearranging the area by using the CRAFT and ALDEP
technique didn’t add the value of study because; almost all the area of the
warehouse is dedicated to the storage of the freight. However, to execute
the study the researchers use the design parameters and constraints
those stated in Table1. For this, different warehouse designers thought
it is very difficult to provide optimal facility layout for warehouse
design because it has no fixed theoretical procedures and theoretical
frameworks to reach optimal space allocation. As some authors revised
in the literature review even there are varieties of researches that have
been done about the way warehouse design practitioners use the results
of these researches really seldom rather, they prefer to rely on their
experience and expertise. Even there are no fixed theoretical procedures
and frameworks to reach the optimal space allocation are different;
the procedures practitioners followed to design the warehouses were
interrelated. Therefore, the researchers’ some extent tailored to Baker
and Canessa [11] and frameworks as per their requirements. Whilst, the
critical thing modified in this warehouse is the size aisles, storing policy,
storing tools as well as the accessibility of fright from stored tools.
Based on this, the alternative layouts are proposed by changing different
factors like; Aisle configuration i.e. crossed and angled aisle, depth of
pallets and rack cells. Proposed alternative layouts were selected by the
analytical hierarchy procedure (AHP) method.

4. FIELD RESULT AND ANALYSIS

Analysis of this study basically executed depending on the observation,

Figure 2: Illustration of pallet quantity with in standard containers survey and documented data of dry port as well as different website of
(https://www.indiamart.com). related area with referring the framework of warehouse design. Detail
analysis of gathered data and results of analysis were incorporated in
the different procedures of warehouse modification stages as followings.

4.1 Stages of warehouse modification

(1) Determine the operating procedures

Operation decisions define the material flow in a warehouse, which

is elaborated in the following. First, items arrive and received in the
facility. Then, the item is either forwarded to the shipping area or
allocated in a storage location. The best storage location is close to a
dock so that the cost of unloading the items at a dock and transporting
them to the storage area and accessing items and transferring them to
a dock for loading is minimized. When an order is received, the picker
retrieves the ordered items. Note that, the retrieval can be triggered
either by an order for item replenishment in the forward storage area
or by a customer order. To ensure efficiency, the picker should follow a
route that minimizes the cost of the retrieval. Order consolidation can be
considered to facilitate an efficient picking. Finally, items are loaded on
the carriers and shipped. The main stages in this process are: receiving,
storage, order picking, and shipping.

Through the month, the number of unstuffy containers to truck become

increasing. According the plan of Modjo dry port, monthly 262 TEU
Figure 3: Illustration of standard pallet used for design of alternative containers are planned to unstuffed truck. However, the service has been
layouts (https://www.indiamart.com). given to 241 TEU containers at the time of beginning. But performance
decreased to 91.98% TEU containers. This indicates that, total capacity
3. METHODOLOGY of unstuffing containers to truck increasing from year of 2008 to 2009
E.C. The reason for decreasing the performance of unstuffed containers
The study was conducted to propose scenarios for efficient space to the truck service was unwillingness of importers to receive their
utilization. So, to execute these; the researchers were used primary containers by truck. The number of containers gets service of unstuffing
and secondary data to accomplish the study successfully. The primary to truck were 3,058, however; the performance was decreased to 2,736
data was collected by field observation and field survey as well as an TEU containers. This shows that, 89.47% containers unstaffed to truck
performed. This reflects that, when the total container unstuffing to

Cite The Article: FasikaBete Georgise, Bonde Assefa, Habte Bekele (2020). Design of Alternative Warehouse Layout for Efficient Space Utilization: A Case of Modjo Dry Port.
Advances In Industrial Engineering And Management, 9(1) : 6-13.
 Advances In Industrial Engineering And Management (AIEM) 9(1) (2020) 6-13

truck decreases; The number of unstuffing container to warehouse remaining parts of warehouse are dedicated for vertical and horizontal
increase due to interest of importers to take their container from aisles and management rooms as well as for lockers. However, most of
warehouse. This leads to increase amount of freights in the warehouse aisles parts wouldn’t give the service as per requirements rather serving
beyond the capacity of existing warehouse. as inspection area. These makes the existing layouts of warehouses
become overcrowded and it reduces the accessibility and order picking
during sorting of goods. Besides, stock keeping units like cartons weren’t
generating any new stacking positions on them when excess freight
staffed to warehouse. All these, enforced the warehouse operators to use
the only the 2.446 m from the 11 m volume height of existing warehouse
as well as reduce the opportunity to store more than dedicated freight
i.e. as reflected on figure ach layouts allowed to store only individual
containers until it ships from warehouse after completion inspections.
The overall structure of warehouse is basically composed the more than
72% of storage and aisles remaining part composed by offices, lockers
and inspections area for existing warehouse from the area of 128 m × 41
m. Correspondingly, modified alternative layouts 72% area out of total
area of warehouse expected for storage and passageways in warehouse.
But the remaining parts are expected for inspections area, lockers, and
offices and for movement of operators and other visitors.

(3) Identifying basic parameters and constraints for design of alternative

layouts

Figure 4: Activity flowing diagram of cargo from the terminal to Parameters and constraints used to design modified alternative layouts
warehouse. are basically depend on their availabilities and standards. The design
basically depends on the double and single deep racks with the cross,
As indicated in Figure 5, the amount of the container unstuffed to the diagonal and angle aisle with neglecting the thicknesses of racks. As
warehouse increased from the year to year. However, the total number indicated figure above the amount of the container unstuffed to the
of containers to unstuff to truck becomes too decreased from year to warehouse increased from the year to year. However, the total number
year. From the reports and field observation, researcher understand of containers to unstuff to truck becomes too decreased from year to
increasing the number of containers unstuffed in the warehouse makes year. From the reports and field observation, researcher understand
the existing layouts of warehouse less attractive and increase the increasing the number of containers unstuffed in the warehouse makes
congestion as well as delay for the inspection. the existing layouts of warehouse less attractive and increase the
congestion as well as delay for the inspection.

Table 1: Design parameters and constraints.

S. No. Parameters and constraints

The height and area of warehouse is 11 m × 128 m × 41 m

1
respectively
Volume of containers 63.1 m3 and 32 m3 of 40 ft and 20 ft
2
respectively
Total amount of standard pallets unstaffed from 40 ft
3
standard containers are 24

4 The aisle width is 2.7 m

Figure 5: Total number of unstuffed containers to warehouse and 5 Lifting height of fork lift is approximately 7 m

trucks through years. 7 The pallet type is 1.2 m × 1 m

Aisle configurations are cross aisle and angled aisle

8
configuration
Type of racks double deep rack; which is two single-deep
9
racks placed one behind the other.

Storage dedicated at center of shipping and receiving

10
docks after considering basic necessity of warehouse

4.2 Design modified alternative layout depending on the

parameters

According to Rushton et al. [14], the design modification can describe

the warehouse zoning. The area distinguished on the basis of a particular
characteristic, use, restriction, etc. This step walks around the partition
of areas for various departments. The procedure is conducted depending
Figure 6: The existing layouts of Modjo dry port warehouse. on the activities accomplished in the warehouse. Though, this procedure
has no activity relationship which can determine the exact locations of
(2) Overall warehouse structure determination each location. The reason basically warehouse is dedicated to store the
freight which unstaffed from the container. In these cases, other activity
This the existing layout mimics the dimensions of warehouse is 128.10 m cannot be performed rather than inspecting freight. The expectation
× 41.0 m and from this more than 72% areas of warehouse are dedicated of location for inspection and for pallet rack is enough to provide
for the freights which unstuffed from 40- and 20-feet containers. Wherein, location determination. Therefore, the researchers have proposed four

Cite The Article: FasikaBete Georgise, Bonde Assefa, Habte Bekele (2020). Design of Alternative Warehouse Layout for Efficient Space Utilization: A Case of Modjo Dry Port.
Advances In Industrial Engineering And Management, 9(1) : 6-13.
 Advances In Industrial Engineering And Management (AIEM) 9(1) (2020) 6-13

alternatives layout options namely, I, II, III and IV. However, according operation system of Modjo dry port warehouse the
pallets unstaffed to the warehouse and it stored in two deep pallet and
Design of alternative layout I: This alternative layout was motivated the both are picked at once to delivered to importers. Then all the cells be-
by two factors, by considering the closeness to shipping and receiving come free after picking restored by others pallets of importers. Generally,
docks. The inspection area also is very close to receiving as docks. when we create deeper lanes, we can create a better pallet storage place
with expense of value. Researcher conducted by Hackman and Bartholdi
The main reason is during the pallets are inter into warehouse. Some
[15] confirm the same. However, in this case the researcher needs to con-
of them inspected randomly and then, stored until the customers
sider many factors but space utilization is most critical one. The double
complete custom clearance to take inspected freight from warehouse. deep layout lanes demonstrate about thinking more pallet places from the
These actions are performed at receiving docks to avoid double trip of similar floor area compared to the single deep alternative layout I.
forklift. However, the office and lockers are also allocated at left and
right side in warehouse. So, the area allocated for inspections are four
with corresponding area. The layout was drawn with cross aisle, which
is allows more direct and therefore shorter travel between storage
locations [15]. As the legend indicates the layout I provided with different
facility for efficient space utilization and inspection performance. From
the layout I; The area allocated to accommodate two deep racks with
single pallet and aisle is 110.60 m × 26.70 m or 2953.02 m2. The total
pallets can accommodate at bottom cells of racks are 844 pallets with
the dimension of 1.2 m × 1 m. Figure 7 shows alternative layout I. the
following Figure 7 demonstrates alternative layout I.

Figure 8: Cross aisles configuration layout of warehouse with two

pallets deep for double deep racks.

Figure 7: Cross aisles configuration layout with single pallet deep for
double deep racks.

Design of alternative layout II: The second alternative layout

alternative is not varying much from the alternative layout I. All activities Figure 9: Layout of one pallet of double deep rack with angled aisles
are the same with layout I. However, the depth of pallet in cells of rack configuration warehouse.
increased from one to two. Due to this, the location of aisle shifted to
other locations. This reduces the wastage of aisle. The single-deep Design of alternative layout IV: The fourth layout alternative does not
layout has twenty-one aisles and delivers 844 pallet storage locations. much differ from the previous one. All operations of Agility are located in
These are directly easily reached, that means that they are offered for the same area of allocated as layout III; However, the depth of pallet in cells
reassignment immediately the current pallet is shipped out. In contrast, of rack increased from one to two. Due to this, the location of aisle shift-
the double-deep layout has only fourteen aisles and provides 1128 ed to other locations. This reduces the wastage of aisle as layout III. The
single-deep layout has short travel paths but aisles less in number when
pallets storage locations but, only 564 of them are directly accessible.
compared with the layout III and provides 834 pallet storage locations,
Generally, the 564 pallets are directly accessible are not free for reuse all of which are directly accessible, which means that they are available
until the interior pallet location in the same lane. for reassignment as soon as the current pallet is shipped out. In contrast,
the double-deep layout has only fourteen aisles and provides 1194 pallets
However, according operation system of Modjo dry port warehouse storage locations but, only 597 of them are directly accessible. Generally,
the pallets unstaffed to the warehouse and it stored in two deep pallet the 597 that are directly accessible are not available for reuse until the
and the both are picked at once to delivered to importers. Then all the interior pallet location in the same lane becomes available. Generally, the
cells become free after picking restored by others pallets of importers. deeper lanes produce more pallet storage locations but they are of dimin-
Generally, the alternative II with deeper lanes gives additional pallet ishing value.
places. According to Hackman and Bartholdi [15] providing items
arrangement in lanes, the new pallet positions could share the same According to [15] by storing product in lanes, additional pallet positions
aisle space and so remunerate that cost. In this case, there are numerous can share the same aisle space and so amortize that cost. There are many
issues can be deliberate; however, the most significant one is effective issues to consider, but the most important one is effective utilization of
utilization of space. The double deep layout demonstrates about space. Double deep layout (lanes that are two pallet-positions deep) fits
thinking present about 25.2% more pallet places from the similar floor about 30.2% more pallet positions in the same floor area than does the
areas compared to the single deep alternatives layout I. Figure 8 shows single-deep layout of alternative layout I. Figure 10 demonstrates the
the results of alternative layout design II. design of alternative layout IV.

Design of alternative layout II: The second alternative layout is not dif- Generally, if the enterprise proposes one layout from the proposed alter-
fering much from the alternative I. All operations system same with layout native layouts; the capacity to accommodate TEU would be four times that
I; However, the depth of pallet in cells of rack increased from one to two. of selected layout for only the bottom cells of racks because, the Modjo dry
Due to this, the location of aisle shifted to other locations. This reduces port have four warehouses with similar function and layouts. Wherein, the
the wastage of aisle. The single-deep layout has twenty-one aisles and study was done on only one warehouse to propose alternative layouts of
gives 844 pallet space store locations, that are in a straight line accessi- all warehouses due to their correspondence of dimensions. For example,
ble, which means that they are available for reassignment as soon as the if the layout I, II, III, and IV selected; their capacity to store would be 2256,
current pallet is shipped out. In contrast, the double-deep layout has only 3008, 2224 and 3184 TEU containers respectively in warehouses bottom
fourteen aisles and provides 1128 pallets storage locations but, only 564 cells. But the vertical cells depend on the lifting height forklift. Regarding
of them are directly accessible. Generally, 564 pallets are freely access and the holding cost of warehouse implementing of alternative layouts would
alternatives with deeper lanes give additional pallet places. The alterna- charge enterprise for footprint area of 2953 m2 to store 844, 1128, 834
tive layout design III has shown in Figure 9. and 1194 pallets for the layout I, II, III and IV respectively.

Cite The Article: FasikaBete Georgise, Bonde Assefa, Habte Bekele (2020). Design of Alternative Warehouse Layout for Efficient Space Utilization: A Case of Modjo Dry Port.
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(1) Consistency Index and Consistency ratio of evaluation

The researchers have utilized consistency Index (CI) as deviation or

degree of consistency using the following formula:
λmax - n
CI = (2)
n-1

Table 2: The average random consistency index (RI) of sample size 500
matrices.

Figure 10: Layout of two pallets deep of double deep racks with angled n 1 2 3 4 5 6 7 8 9 10
aisles warehouse.
RI 0 0 0.58 0.9 1.12 1.24 1.32 1.41 1.45 1.49

4.3 Evaluation of alternative layouts In addition, we have also calculated consistency Ratio (CR), which is a
comparison between Consistency Index and Random Consistency Index,
Using the analytical hierarchical procedure (AHP) method the alternative or in formula,
layout of warehouse was selected depending on the relationship between
CI
factors, choices and goal. The level 0 for below diagram is called the goal CR = (3)
of study. Level 1 is the factors for the selection of warehouse and level RI
2 illustration hierarchies shows the alternative layouts which selected (2) Filling up the upper triangular matrix
depending on the commutative weights of layout which computed
depending on level 0 respect to level 1 and level 1 respect level 2. With proper utilization of Analytic Hierarchy Process (AHP), the
researcher-shave converted ordinal scale to ratio scale. Finally, we can
check its consistency appropriately. If the judgment value is on the left
side of 1, we put the actual judgment value and if the judgment value is
on the right side of 1, we put the reciprocal value as illustrated Figure
13 bellow.

Figure 13: Illustrative judgmental value score of comparison right with

Figure 11: Illustrative structure AHP to select alternative layouts of left.
warehouse.
The Table 3 below demonstrates the results of our factor comparison
with respect to level 0 or goal of the research.
The researchers’ computes for comparison at level, we have computed
the pair-wise evaluation between four factors with respect to goal. This
evaluation has 4 × 4 matrix for level I. Hence, each choice is linked to Table 3: Comparison of factors with respect to goal or level 0.
each factor which have four choices. Then, each factor will have four
comparison matrices at level II (Figure 12).
Proximity
Suitability Store to Accessibility Priority
for travel space inspection for forklift vector
area

Suitability
1 0.1428 2 0.1666 7.93%
for travel

Store space 7 1 7 2 51.47%

Proximity to
inspection 0.5 0.1428 1 0.1428 5.41%
area

Figure 12: Paired comparison matrix, normalized matrix and priority Accessibility
vectors. 6 0.5 7 1 35.19%
for forklift

Sum 14.5 1.7856 17 3.30946 100%

The priority vector computed summing rows of the normalized vectors
for their respective rows criteria and largest Eigen value λmax for the
comparison matrix computed depending on the priority vectors and λmax = 4.1529, CI = 0.05096, CR = 5.663% < 10%.
summation of the columns value of comparison matrix.
Ri The following Table 4 shows the comparison of alternative design our
∑
n
λmax
= × Sci (1) four options.
i
n
Where, Sci is summation of the column’s comparison matrix. λmax = Table 4: Comparison of alternative layouts with respect to suitability
largest eigen value. Ri = summation of rows of normalized matrix. to travel.

Cite The Article: FasikaBete Georgise, Bonde Assefa, Habte Bekele (2020). Design of Alternative Warehouse Layout for Efficient Space Utilization: A Case of Modjo Dry Port.
Advances In Industrial Engineering And Management, 9(1) : 6-13.
 Advances In Industrial Engineering And Management (AIEM) 9(1) (2020) 6-13

Layout Layout Layout Layout Priority Proximity

  Suitability Store to Accessibility Composite
1 2 3 4 vector
for travel space inspection for forklift Weight
Layout 1 1 0.5 7 5 0.3746 area

Layout 2 2 1 5 4 0.4564
Weight 0.07929 0. 5147 0.0541 0. 3519
Layout 3 0.1428 0.2 1 0.5 0.0649
Layout 1 37.46% 5.05% 27.72% 56.63% 26.997 %
Layout 4 0.2 0.25 2 1 0.1042
Sum 3.3428 1.95 15 10.5 100% Layout 2 45.64% 35.69% 46.58% 13.33% 29.199 %

λmax = 4.209089, CI = 0.069696, CR = 7.744 % < 10%. Layout 3 6.49% 7.50% 9.60% 20.69% 12.17%

Table 5: Comparison of alternative layouts with respect to store space. Layout 4 10.42% 51.76% 16.10% 9.36% 31.63%

Layout Layout Layout Layout Priority

1 2 3 4 vector Therefore, the alterative layouts decision is composite weight of layouts
are calculated by using analytical hierarchical procedure and the layout
Layout 1 1 0.1428 0.5 0.125 0.0505 IV, II, I and III are score the composite weight of 31.63%, 29.199 %,
26.997 %, and 12.17% respectively. Whereas, AHP factors like suitability
for travel, store space, proximity to inspection area and accessibility for
Layout 2 7 1 7 0.5 0.3569 forklift in table4are score 7.93%, 51.47%, 5.41%, and 35.19% of priority
vector respectively with respect to goal for the selection of alternative
Layout 3 2 0.1428 1 0.1428 0.0750 layouts.

5. CONCLUSIONS AND SUGGESTIONS

Layout 4 8 2 7 1 0.5176
In the current time warehouse play the essential role to perform the
Sum 18 3.2856 15.5 1.7678 100% short time, reliable and efficient the logistics supply chain, the more
efficiently and reliably goods can be shipped from the warehouse to the
λmax = 4.158668, CI = 0.052889, CR = 5.8766 % < 10%. point of consumption. In Modjo dry port increasing the flow of unstuffed
containers from the terminal to the warehouse is becomes beyond the
Table 6: Comparison of alternative layouts with respect to proximity to dedicated volume of the existing warehouse. These obviously affect
inspection area. the performance of this warehouse due to lack of proper layout with
pallet racks. These enforced the operators to use volume space of the
warehouse below the height of 2.446 m. To overcome this and related
Layout Layout Layout Layout Priority
challenges the four alternative layouts were proposed. To decide the
1 2 3 4 vector
alterative layouts are composite weight of layouts are calculated by
Layout 1 1 0.5 3 2 0.2772 using analytical hierarchical procedure and the layout IV, II, I and III
are score the composite weight of 31.63%, 29.199 %, 26.997 %, and
12.17% respectively. Whereas, AHP factors like suitability for travel,
Layout 2 2 1 4 3 0.4658 store space, proximity to inspection area and accessibility for forklift are
score7.93%, 51.47%, 5.41%, and 35.19% of priority vector respectively
Layout 3 0.333 0.25 1 0.5 0.0960 with respect to goal for the selection of alternative layouts. If layout I, II,
III, and IV selected; Their capacity to store would be 2256, 3008, 2224
and 3184 TEU containers respectively in warehouses bottom cells. By
Layout 4 0.5 0.333 2 1 0.1610 applying this enterprise would be charged for a footprint area of the
2953 m2 to store 844, 1128, 834 and 1194 pallets for the layout I, II,
Sum 3.833 2.083 10 6.5 100% III and IV respectively. Therefore, Modjo dry port and terminal should
have use pallet racks as per the alternative layout proposed. Further,
λmax = 4.0390, CI = 0.013003, CR = 1.445% < 10%. the study should be done by considering the different types of pallets,
racks, and aisle for a more reliable, timely and cost-effective solution to
Table 7: Comparison of alternative layouts with respect to accessibility diminish the congestion by efficient using the space of warehouse.
for forklift.
REFERENCES

Layout Layout Layout Priority [1] De Oliveira, L.V. European coordinator for motorways of the sea—
Layout 4
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(2008).

Layout 2 0.2 1 0.5 2 0.1333 [2] World, Bank. World bank seaport toolkit edition. Washington USA,
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Sum 1.733 8.5 5 10 100% [4] Rodrigue, J.P., Debrie, J., Frémont, A., Gouvernal, E. Functions and
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of Information Technology (2009) 19(4):228-233.
weight.

Cite The Article: FasikaBete Georgise, Bonde Assefa, Habte Bekele (2020). Design of Alternative Warehouse Layout for Efficient Space Utilization: A Case of Modjo Dry Port.
Advances In Industrial Engineering And Management, 9(1) : 6-13.
 Advances In Industrial Engineering And Management (AIEM) 9(1) (2020) 6-13

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Cite The Article: FasikaBete Georgise, Bonde Assefa, Habte Bekele (2020). Design of Alternative Warehouse Layout for Efficient Space Utilization: A Case of Modjo Dry Port.
Advances In Industrial Engineering And Management, 9(1) : 6-13.
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