Logistics Management

Prof. Alessandro Perego

Politecnico di Milano

Exercises on
Automated Warehouse Management
(collection of exercises from past examinations)

1
Exercise 1
DEPAUTOM S.p.A. wants to build an automated warehouse to store pallet loads (800 x 1,200 x h = 1,500
mm). The warehouse will be made by single deep selective racks, served by one S/R machine per aisle. In
each aisle the pallet locations can be identified by three values (a, b, c):
- a, i.e. hand side rack (R/L = right/left hand side rack with the respect to the I/O system);
- b, i.e. number of the pallet location columns (PL, see Figure 4);
- c, i.e. number of the storage levels (SL).
Assuming the following design parameters:
- storage capacity = 16,000 pallet locations;
- throughput capacity not lower than 130 pallet loads/h;
- maximum rack length = 90 m;
- maximum rack height = 22 m;
- 3 pallet locations per bay (upright width = 90 mm, beam height = 100 mm);
- distance between pallet load and upright = 80 mm;
- distance between two pallets side by side in the bay = 80 mm;
- clearance between top of the pallet load and beam above = 150 mm;
- distance between two opposite pallet loads in the facing racks = 200 mm;
- input/output at the 3rd storage level;
- horizontal speed of the S/R machine = 2 m/s;
- vertical speed of the S/R machine = 0.4 m/s;
- fixed positioning time = 5 s;
- fixed time for the fork cycle = 10 s;
- acceleration + deceleration time = 8 s,
assuming furthermore that:
- 60 % of the cycles are single command cycles;
- F.E.M. 9851 is applicable,
you are requested as follows:
1. to size the storage system;
2. if you need to retrieve in the aisle number 3 the pallet load positioned in the location P (R, 58, 7) and
assuming that in that aisle there are 4 empty pallet locations: A (R, 8, 10); B (L, 28, 5); C (R, 50, 4); D
(R, 70, 9), where it’s better to store the pallet load if you have to perform a dual command cycle?
…
…

SL

PL
C section
Figure 1 – Frontal view of a storage rack

2
Exercise 2
“SMACCHIA S.p.a.” owns a “traditional warehouse” (single deep selective racks served by straddle reach
trucks) with a storage capacity of 8,600 pallet locations (PL) that was built in the early ’90. The storage
capacity has become now insufficient. The actual need, stable since few years ago, is 12,000 pallet locations.
To fulfil the storage capacity needs, the company rents storage capacity from a third party logistics provider,
at a cost of 45 euro/(pallet location·year) and has a shuttle cost (transportation of pallets load to and from the
third party logistics prodiver) equal to 130,000 euro/year. SMACCHIA wants to assess the investment
required to build an automated warehouse with a storage capacity of 12,000 PL, made by 3 aisles with
double deep selective racks to store pallet loads (800x1200mm). The new warehouse is expected to have the
following characteristics:
- gross bay width = 2,000 mm (2 pallet locations per bay) and gross height = 1,600 mm;
- 12 storage levels;
- input/output at the ground level;
- allocation of the couples of pallet loads (same item for the two pallet loads in a double deep pallet
location) is random storage,
and will be served by a S/R machine per aisle, with the following performances:
- horizontal speed = 3 m/s; vertical speed = 0.6 m/s;
- positioning time = 6 s;
- fork cycle time = 16 s:
- acceleration+deceleration time = 7s.
You are requested as follows:
1) assuming that FEM 9851 is applicable, size the storage system and assess the throughput capacity,
assuming 100% of dual command cycles.
2) Assuming the following:
- cost for the automated storage system (all included) = 320 €/PL;
- input+output flows for the automated warehouse = 360,000 pallet loads/year;
- savings compared to the actual handling cost = 0.35 euro/pallet load (input or output);
- life cycle time for the automated warehouse = 10 years;
- terminal value after 10 years (not actualised) = 1,5·106 euro;
- cost of capital = 5 %,
and neglecting other costs, find out if it is worthwhile to build the automated warehouse.

Exercise 3
INFODIST S.n.c., a consumer electronics wholesaler, needs to build an automated storage system made by
single deep selective pallet racks to store pallet loads (800 x 1200 mm). Assuming the following:
- one S/R machine per aisle;
- inbound flow = 150.000 pallet loads/year;
- distribution of the heights of the inbound pallet loads as shown in Table 1;
- bays all the same size;
- 2 pallet locations per bay, (upright width = 90 mm, beam height = 80 mm; clearance between top of the
pallet load and beam above = 150 mm; space between upright and pallet load = 100 mm; distance
between two opposite pallet loads in the facing racks = 160mm);
- cost of the racks = function of the bay height (Table 1);
- I/O point in correspondence with the third level of the rack;
- horizontal speed of the S/R machine = 2 m/s;
- vertical speed of the S/R machine = 0,6 m/s;
- fixed time of positioning = 5 s;
- fixed time for the fork cycle = 7 s;
- fixed time for acceleration and deceleration = 5 s;
- purchasing and installation cost for one S/R machine = 129,000 euro,
- maximum length of the racks (all the same) = 100 m;
- maximum height of the racks = 25 m;
- 100% dual command cycles;
- cost of capital = 7%/year;
- system life cycle time = 10 years;

3
- F.E.M. 9851 applicable;
- the pallet loads that are too high to be directly stored need to be repalletised with a cost of 2.58
euro/pallet load;
- the required storage capacity and throughput capacity are in function of the bay height as reported in
Table 2;
You are requested to find out which is the best height for the bay choosing between the following two
values: 1.45m e 1.85m.

Pallet load height [m] 1 1,2 1,4 1,6 1,8

Cumulated inbound flows 20 % 60 % 78 % 90 % 100 %
Table 1 - Distribution of the heights of the inbound pallet loads
Gross bay height (*) [m] 1.45 1.85
Storage capacity [pallet locations] 20,000 18,000
Throughput capacity[pallet loads/h] 120 110
Cost of the racks [euro/pallet location] 41 46
(*) Gross bay height: clearance between two beams + beam height
Table 2 - System parameters

Exercise 4
SPAREPARTS S.p.A., a wholesaler of automotive spare parts, stores low-volume items through a miniload
AS/R system with storage capacity equal to 8,500 single-item totes with dimensions 500 x 700 x 420 (h)
mm. The picking lists are prepared according to an order picking policy and the totes are moved to the
picking area through roll conveyors. After visiting the picking area, the totes are restored in the AS/RS, using
100% dual command cycles (see Figure 7).
Assuming the following:
- gross dimensions of the bay (containing 4 totes): 2,300 x 750 x 550 (h) mm;
- maximum rack length: 50 m;
- maximum rack height: 8 m;
- horizontal speed: 4 m/s;
- vertical speed of the forks: 1.5 m/s;
- input/output in the same point at the 3rd level;
- fixed time for dual command cycles: 12 s,
- FEM 9851 applicable;
- number of pieces per line always lower than the number of pieces in the tote;
- all the orders have to be fulfilled before the end of the turn,
You are asked to size the miniload AS/R system (in terms of rack length and height, and number of aisles),
in order to provide an order preparation capacity not less than 450 order lines/h.

Mini load Totes Picking Order assembly

AS/RS area
Totes

Figure 2 – Scheme of the system (storage + picking)

4
 SOLUTIONS

Exercise 1

1. Storage system configuration

We can start from sizing the generic bay:
𝐻 𝑏𝑎𝑦 ℎ𝑒𝑖𝑔ℎ𝑡 = 𝐻,- + 𝑏𝑒𝑎𝑚 ℎ𝑒𝑖𝑔ℎ𝑡 + 𝑐 = 1.5 + 0.1 + 0.15 = 1.75 𝑚
𝑊 𝑏𝑎𝑦 𝑤𝑖𝑑𝑡ℎ = 𝑁𝑃𝐵 ∙ 𝑊,- + 𝑁𝑃𝐵 + 1 ∙ 𝑑 + 𝑢𝑝𝑟𝑖𝑔ℎ𝑡 𝑤𝑖𝑑𝑡ℎ = 3 ∙ 0.8 + 4 ∙ 0.08 + 0.09 = 2.81 𝑚
𝑒 0.2
𝐷 = 𝐷,- + = 1.2 + = 1.3 𝑚
2 2
Warehouse dimensions:
𝑅𝑎𝑐𝑘 ℎ𝑒𝑖𝑔ℎ𝑡 22
𝑁𝐿GHI = 𝑁𝐿 = = = 12 𝑙𝑒𝑣𝑒𝑙𝑠
𝐻 1.75
𝑅𝑎𝑐𝑘 𝑙𝑒𝑛𝑔ℎ𝑡 90
𝑁𝐶GHI = = = 32 𝑐𝑜𝑙𝑢𝑚𝑛𝑠
𝑊 2.81
𝑆𝐶VWX 16,000
𝑁𝐴GST = = = 7 𝑎𝑖𝑠𝑙𝑒𝑠
2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐿 ∙ 𝑁𝐶 2 ∙ 3 ∙ 12 ∙ 32
In order to minimize space and S/R machine travel distance, we can verify whether the minimum number of
columns such that the required SC is satisfied is lower than 32:
𝑆𝐶VWX 16,000
𝑁𝐶 = = = 32 𝑐𝑜𝑙𝑢𝑚𝑛𝑠
2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐿 ∙ 𝑁𝐴GST 2 ∙ 3 ∙ 12 ∙ 7
𝑆𝐶VWH[ = 2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐿 ∙ 𝑁𝐶 ∙ 𝑁𝐴 = 2 ∙ 3 ∙ 12 ∙ 32 ∙ 7 = 16,128 𝑝𝑎𝑙𝑙𝑒𝑡 𝑙𝑜𝑎𝑑𝑠
Knowing the main parameters related to the warehouse design, we can proceed to the cycle time assessment
(using the FEM 9851, as reported in the figure and table below), to make sure that the identified system
configuration respects also the required Throughput Capacity:

Coordinates [m] X Y
y(I/O) 0 3.50
P1 17.98 14.00
P2 59.95 5.02

Average time to perform a single command cycle:

17.98 14 − 3.5
𝑇 𝐼 → 𝑃1 = 𝑇 𝑃1 → 𝑂 = 𝑚𝑎𝑥 ; = 26.25 𝑠
2 0.4
59.95 5.02 − 3.5
𝑇 𝐼 → 𝑃2 = 𝑇 𝑃2 → 𝑂 = 𝑚𝑎𝑥 ; = 29.98 𝑠
2 0.4
𝐴𝑉𝑇𝑆𝐶 = 𝑇 𝐼 → 𝑃1 + 𝑇 𝐼 → 𝑃2 = 56.23 𝑠
𝐹𝑇𝑆𝐶 = 2 ∙ 5 + 8 + 10 = 46 𝑠
𝐴𝑇𝑆𝐶 = 102.23 𝑠/𝑆𝐶

5
Average time to perform a dual command cycle:
59.95 − 17.89 5.02 − 14.00
𝑇 𝑃1 → 𝑃2 = 𝑚𝑎𝑥 ; = 22.45 𝑠
2 0.4
𝐴𝑉𝑇𝐷𝐶 = 𝑇 𝐼 → 𝑃1 + 𝑇 𝑃1 → 𝑃2 + 𝑇 𝑃2 → 𝑂 = 78.68 𝑠
𝐹𝑇𝐷𝐶 = 3 ∙ 5 + 8 + 4 ∙ 10 = 79 𝑠
𝐴𝑇𝐷𝐶 = 157.68 𝑠/𝐷𝐶
Therefore, the Throughput Capacity of a single S/R machine is:
%𝑆𝐶 0.6
3600 ∙ + %𝐷𝐶 + 0.4
𝑇𝐶f = 2 = 3600 ∙ 2 = 20.26 𝑃𝐿𝑠/ℎ
g GHhiSTW %𝑆𝐶 ∙ 𝐴𝑇𝑆𝐶 + %𝐷𝐶 ∙ 𝐴𝑇𝐷𝐶 0.6 ∙ 102.23 + 0.4 ∙ 157.68
And the system TC is:
𝑇𝐶 = 𝑁𝐴 ∙ 𝑇𝐶f = 7 ∙ 20.26 = 141.82 𝑃𝐿𝑠/ℎ (higher than the target value = 130 PLs/h)
g GHhiSTW

2. Selection of the best storage location among those proposed for performing the dual command cycle
To identify the best pallet location we apply the “No-cost zone” criteria. Apply the methodology consists in
checking which (if any) of the four points A, B, C and D falls into the NCZ.
Using the graphical method (i.e. drawing the NCZ made of 45° degree lines), results show that B is the only
point falling into the NCZ, and therefore it is the most suitable candidate for optimizing the double command
cycle.

Time coordinates
45
40 P1 (3.7; 39.4)
35 P4 (32.8; 35)
30
P0 (27.2; 26.3)
25
[s]

20
P2 (13.1; 17.5)
15
P3 (23.4; 13.1)
10 I/O (0,8.75)
5
0
0 4 7 11 14 18 21 25 28 32 35 39 42 46
[s]

The same conclusion can be also analytically reached, by verifying the equation reported below for each of the
four points (denoted as Q in the formula):
𝑉𝑇 𝐼 → 𝑃 = 𝑉𝑇 𝐼 → 𝑄 + 𝑉𝑇 𝑄 → 𝑃
𝑉𝑇 𝐼 → 𝑃 = 𝑚𝑎𝑥 0 − 27.2 ; 8.8 − 26.3 = 27.2 𝑠
𝑉𝑇 𝐼 → 𝐴 + 𝑉𝑇 𝐴 → 𝑃 = 𝑚𝑎𝑥 0 − 3.7 ; 8.8 − 39.4 + 𝑚𝑎𝑥 3.7 − 27.2 ; 39.4 − 26.3 = 54.1 𝑠
𝑉𝑇 𝐼 → 𝐵 + 𝑉𝑇 𝐴 → 𝐵 = 27.2 𝑠
𝑉𝑇 𝐼 → 𝐶 + 𝑉𝑇 𝐴 → 𝐶 = 36.6 𝑠
𝑉𝑇 𝐼 → 𝐷 + 𝑉𝑇 𝐴 → 𝐷 = 41.5 𝑠

6
Exercise 2
Question 1
We already know most of the design parameters, therefore it is possible to directly assess NC:
𝑆𝐶 12,000
𝑁𝐶 = = = 42 𝑐𝑜𝑙𝑢𝑚𝑛𝑠
2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐿 ∙ 𝑁𝐴 2 ∙ 2 ∙ 2 ∙ 12 ∙ 3
From which we can assess the throughput capacity (keeping in mind that only double command cycles are
performed):
x [m] y [m]
I/O 0.00 0.00
P1 16.80 11.73
P2 56.00 3.52
Table 1: Coordinates of the points for FEM 9851 applicationx\
16.8 11.73
𝑇 𝐼 → 𝑃1 = 𝑇 𝑃1 → 𝑂 = 𝑚𝑎𝑥 ; = 19.55 𝑠
3 0.6
56 3.52
𝑇 𝐼 → 𝑃2 = 𝑇 𝑃2 → 𝑂 = 𝑚𝑎𝑥 ; = 18.67 𝑠
3 0.6
56 − 16.8 3.52 − 11.73
𝑇 𝑃1 → 𝑃2 = 𝑇 𝑃2 → 𝑃1 = 𝑚𝑎𝑥 ; = 13.68 𝑠
3 0.6
𝐴𝑉𝑇𝐷𝐶 = 𝑇 𝐼 → 𝑃1 + 𝑇 𝑃1 → 𝑃2 + 𝑇 𝑃2 → 𝑂 = 51.90 𝑠
𝐹𝑇𝐷𝐶 = 3 ∙ 6 + 7 + 4 ∙ 16 = 103 𝑠
𝐴𝑇𝐷𝐶 = 154.90 𝑠/𝑑𝑐𝑐
3600 3600
𝑇𝐶lf = = = 23.24 𝑃𝐿/ℎ
gf 𝐴𝑇𝐷𝐶 154.90
𝑇𝐶 = 𝑁𝐴 ∙ 𝑇𝐶lf = 3 ∙ 23.24 = 69.72 𝑃𝐿/ℎ
gf
Question 2
The storage system cost is paid per Pallet Load. Given the design paramters defined in the previous question,
the effective Storage Capacity is:
𝑆𝐶Wmm = 2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐿 ∙ 𝑁𝐴 ∙ 𝑁𝐶 = 2 ∙ 2 ∙ 2 ∙ 12 ∙ 3 ∙ 42 = 12,096 𝑃𝐿
Which leads to a cost of:
𝑆𝑡𝑜𝑟𝑎𝑔𝑒 𝑆𝑦𝑠𝑡𝑒𝑚 𝐶𝑜𝑠𝑡 = 𝐼n = 12,096 ∙ 320 = 3,870,720 €
As far as operative cost goes, three items define the savings of the Automated Warehouse with respect to the
Traditional one: Shuttle Cost, Storage Capacity Rent and Handling Cost. Thus, the yearly saving in costs is:
𝑆𝑎𝑣𝑖𝑛𝑔𝑠p = 𝑆ℎ𝑢𝑡𝑡𝑙𝑒 + 𝑅𝑒𝑛𝑡 + 𝐻𝑎𝑛𝑑𝑙𝑖𝑛𝑔 = 130,000 + 45 ∙ 12,000 − 8,600 + 0,35 ∙ 360,000
= 409,000 € 𝑦
Considering also the Terminal Value (1,500,000 €), the NPV is:
qn qn
𝑆𝑎𝑣𝑖𝑛𝑔𝑠p 𝑇𝑉 409,000 1,500,000
𝑁𝑃𝑉 = −𝐼n + p
+ qn
= −3,870,720 + + = 208.339 €
1+𝑖 1+𝑖 1.05 p 1.05 qn
prq prq
In conclusion, the investment is economically worthwhile.

Exercise 3
Case a) Gross Bay Height: 1.45 m
The generic bay size dimensions are:
𝑊 = 𝑢𝑝𝑟𝑖𝑔ℎ𝑡 + 𝑁𝑃𝐵 ∙ 𝑑,- + 𝑃𝐿s + 𝑑tuVSvip = 0.09 + 2 ∙ 0.1 + 0.8 + 0.1 = 1.99 𝑚
𝑑xuuxySpW 0.16
𝐷 = 𝑃𝐿w + = 1.2 + = 1.28 𝑚
2 2
𝐻 = 1.45 𝑚
While the design parameters of the warehouse are:

7
 𝑀𝑎𝑥 𝑟𝑎𝑐𝑘 ℎ𝑒𝑖𝑔ℎ𝑡 25
𝑁𝐿 = = = 17 𝑙𝑒𝑣𝑒𝑙𝑠
𝐻 1.45
𝑀𝑎𝑥 𝑟𝑎𝑐𝑘 𝑙𝑒𝑛𝑔ℎ𝑡 100
𝑁𝐶 = = = 50 𝑐𝑜𝑙𝑢𝑚𝑛𝑠
𝑊 1.99
𝑆𝐶 20,000
𝑁𝐴 = = = 6 𝑎𝑖𝑠𝑙𝑒𝑠
2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐿 ∙ 𝑁𝐶 2 ∙ 2 ∙ 17 ∙ 50
𝑆𝐶 20,000
𝑁𝐶Wmm = = = 50 𝑐𝑜𝑙𝑢𝑚𝑛𝑠
2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐿 ∙ 𝑁𝐴 2 ∙ 2 ∙ 17 ∙ 6
From the design parameters it is possible to define the throughput capacity:
x [m] y [m]
I/O 0.00 2.90
P1 19.90 16.43
P2 66.33 5.61
Table 2: Coordinates of the points for FEM 9851 application\
19.90 16.43 − 2.90
𝑇 𝐼 → 𝑃1 = 𝑇 𝑃1 → 𝑂 = 𝑚𝑎𝑥 ; = 22.55 𝑠
2 0.6
66.33 16.43 − 2.90
𝑇 𝐼 → 𝑃2 = 𝑇 𝑃2 → 𝑂 = 𝑚𝑎𝑥 ; = 33.17 𝑠
2 0.6
66.33 − 19.90 5.61 − 16.43
𝑇 𝑃1 → 𝑃2 = 𝑇 𝑃2 → 𝑃1 = 𝑚𝑎𝑥 ; = 23.22 𝑠
2 0.6
𝐴𝑉𝑇𝐷𝐶 = 𝑇 𝐼 → 𝑃1 + 𝑇 𝑃1 → 𝑃2 + 𝑇 𝑃2 → 𝑂 = 78.94 𝑠
𝐹𝑇𝐷𝐶 = 3 ∙ 5 + 5 + 4 ∙ 7 = 58 𝑠
𝐴𝑇𝐷𝐶 = 136.94 𝑠/𝑑𝑐𝑐
3600 3600
𝑇𝐶lf = = = 26.29 𝑃𝐿/ℎ
gf 𝐴𝑇𝐷𝐶 136.94
𝑇𝐶 = 𝑁𝐴 ∙ 𝑇𝐶lf = 6 ∙ 26.29 = 157.74 𝑃𝐿/ℎ
gf
Which respects the required TC.
To proceed with the assessment of the Net Present Value of Costs, it is first required to assess the initial
investment, which is based on the effective SC:
𝑆𝐶Wmm = 2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐴 ∙ 𝑁𝐿 ∙ 𝑁𝐶 = 2 ∙ 2 ∙ 6 ∙ 17 ∙ 50 = 20,400 𝑃𝐿
Which leads to a initial cost of:
𝐼n = 𝑆𝐶hxyp + 𝑇𝑟𝑢𝑐𝑘hxyp = 41 ∙ 20,400 + 6 ∙ 129,000 = 836,400 + 774,000 = 1,610,400 €
From Table 4 it is possible to assess that, with H=1.45 m, 40% of the pallet will have to be repalletised
(N.B.: 1.45 m includes clearance and beam height). Therefore, the repalletisation cost is:
𝑅𝑒𝑝𝑎𝑙hxyp = 2.58 ∙ 150,000 ∙ 0.4 = 154,800 €/𝑦
Therefore the NPV of Cost is:
qn qn
𝑅𝑒𝑝𝑎𝑙hxyp 154,800
𝑁𝑃𝑉{xyp = 𝐼n + = 1,610,400 + = 2,697,650 €
1+𝑖 p 1.07 p
prq prq
Case b) Gross Bay Height: 1.85 m
Clearly, the only bay dimension affected is height:
𝐻 = 1.85 𝑚
Which affect the design parameters of the warehouse:
𝑀𝑎𝑥 𝑟𝑎𝑐𝑘 ℎ𝑒𝑖𝑔ℎ𝑡 25
𝑁𝐿 = = = 13 𝑙𝑒𝑣𝑒𝑙𝑠
𝐻 1.85
𝑆𝐶 18,000
𝑁𝐴 = = = 7 𝑎𝑖𝑠𝑙𝑒𝑠
2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐿 ∙ 𝑁𝐶 2 ∙ 2 ∙ 13 ∙ 50

8
 𝑆𝐶 18,000
𝑁𝐶Wmm = = = 50 𝑐𝑜𝑙𝑢𝑚𝑛𝑠
2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐿 ∙ 𝑁𝐴 2 ∙ 2 ∙ 13 ∙ 7
Given the slightly different configuration, the position of the Points needed to assess the FEM 9851 changes:
x [m] y [m]
I/O 0.00 3.70
P1 19.90 16.03
P2 66.33 5.67
Table 3: Coordinates of the points for FEM 9851 applicationx\
19.90 16.03 − 3.70
𝑇 𝐼 → 𝑃1 = 𝑇 𝑃1 → 𝑂 = 𝑚𝑎𝑥 ; = 20.55 𝑠
2 0.6
66.33 16.03 − 3.70
𝑇 𝐼 → 𝑃2 = 𝑇 𝑃2 → 𝑂 = 𝑚𝑎𝑥 ; = 33.17 𝑠
2 0.6
66.33 − 19.90 5.67 − 16.03
𝑇 𝑃1 → 𝑃2 = 𝑇 𝑃2 → 𝑃1 = 𝑚𝑎𝑥 ; = 23.22 𝑠
2 0.6
𝐴𝑉𝑇𝐷𝐶 = 𝑇 𝐼 → 𝑃1 + 𝑇 𝑃1 → 𝑃2 + 𝑇 𝑃2 → 𝑂 = 76.94 𝑠
𝐹𝑇𝐷𝐶 = 3 ∙ 5 + 5 + 4 ∙ 7 = 58 𝑠
𝐴𝑇𝐷𝐶 = 134.94 𝑠/𝑑𝑐𝑐
3600 3600
𝑇𝐶lf = = = 26.68 𝑃𝐿/ℎ
gf 𝐴𝑇𝐷𝐶 136.94
𝑇𝐶 = 𝑁𝐴 ∙ 𝑇𝐶lf = 7 ∙ 26.68 = 186.75 𝑃𝐿/ℎ
gf
The effective SC is:
𝑆𝐶Wmm = 2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐴 ∙ 𝑁𝐿 ∙ 𝑁𝐶 = 2 ∙ 2 ∙ 7 ∙ 13 ∙ 50 = 18,200 𝑃𝐿
Which leads to a initial cost of:
𝐼n = 𝑆𝐶hxyp + 𝑇𝑟𝑢𝑐𝑘hxyp = 46 ∙ 18,200 + 7 ∙ 129,000 = 837,200 + 903,000 = 1,740,200 €
With H=1.85 m, 10% of the pallet will have to be repalletised:
𝑅𝑒𝑝𝑎𝑙hxyp = 2.58 ∙ 150,000 ∙ 0.1 = 38,700 €/𝑦
Therefore the NPV of Cost is:
qn qn
𝑅𝑒𝑝𝑎𝑙hxyp 38,700
𝑁𝑃𝑉{xyp = 𝐼n + = 1,740,200 + = 2,012,013 €
1+𝑖 p 1.07 p
prq prq
In conclusion, H = 1.85 m lead to an overall less costly warehouse.

Exercise 4

We can start from assessing the warehouse dimensions (the bay gross dimensions are given)
𝑅𝑎𝑐𝑘 ℎ𝑒𝑖𝑔ℎ𝑡 8
𝑁𝐿GHI = 𝑁𝐿 = = = 14 𝑙𝑒𝑣𝑒𝑙𝑠
𝐻 0.55
𝑅𝑎𝑐𝑘 𝑙𝑒𝑛𝑔ℎ𝑡 50
𝑁𝐶GHI = = = 21 𝑐𝑜𝑙𝑢𝑚𝑛𝑠
𝑊 2.3
𝑆𝐶VWX 8,500
𝑁𝐴GST = = = 4 𝑎𝑖𝑠𝑙𝑒𝑠
2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐿 ∙ 𝑁𝐶 2 ∙ 4 ∙ 14 ∙ 21
In order to minimize space and S/R machine travel distance, we can verify whether the minimum number of
columns such that the required SC is satisfied is lower than 21:
𝑆𝐶VWX 8,500
𝑁𝐶 = = = 19 𝑐𝑜𝑙𝑢𝑚𝑛𝑠
2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐿 ∙ 𝑁𝐴GST 2 ∙ 4 ∙ 14 ∙ 4
𝑆𝐶VWH[ = 2 ∙ 𝑁𝑃𝐵 ∙ 𝑁𝐿 ∙ 𝑁𝐶 ∙ 𝑁𝐴 = 2 ∙ 4 ∙ 14 ∙ 19 ∙ 4 = 8,512 𝑡𝑜𝑡𝑒𝑠

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Knowing the main parameters related to the warehouse design, we can proceed to the cycle time assessment
(using the FEM 9851, as reported in the figure and table below), to make sure that the identified system
configuration respects also the required Throughput Capacity:

Coordinates [m] X Y
y(I/O) 0 1.10
P1 8.74 5.13
P2 29.13 1.8

Average time to perform a dual command cycle:

8.74 5.13 − 1.1
𝑇 𝐼 → 𝑃1 = 𝑇 𝑃1 → 𝑂 = 𝑚𝑎𝑥 ; = 2.69 𝑠
4 1.5
29.13 1.8 − 1.1
𝑇 𝐼 → 𝑃2 = 𝑇 𝑃2 → 𝑂 = 𝑚𝑎𝑥 ; = 7.28 𝑠
4 1.5
29.13 − 8.74 5.13 − 1.8
𝑇 𝑃1 → 𝑃2 = 𝑚𝑎𝑥 ; = 5.1 𝑠
4 1.5
𝐴𝑉𝑇𝐷𝐶 = 𝑇 𝐼 → 𝑃1 + 𝑇 𝑃1 → 𝑃2 + 𝑇 𝑃2 → 𝑂 = 15.07 𝑠
𝐹𝑇𝐷𝐶 = 12 𝑠
𝐴𝑇𝐷𝐶 = 27.07 𝑠/𝐷𝐶

Therefore, the Throughput Capacity of a single S/R machine is:

3,600 3,600
𝑇𝐶f GHhiSTW = = = 133 𝑡𝑜𝑡𝑒𝑠/ℎ
g 𝐴𝑇𝐷𝐶 27.07

And the system TC is:

𝑇𝐶 = 𝑁𝐴 ∙ 𝑇𝐶f = 4 ∙ 133 = 532 𝑡𝑜𝑡𝑒𝑠/ℎ (higher than the target value = 450 totes/h)
g GHhiSTW

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