WAREHOUSE ENGINEERING MANAGEMENT - SEMESTER 02 - 2023-2024

Homework 2 - Solution
CHAPTER 4: WAREHOUSE NETWORKING
�Problem 1 (20 points)
See the attached Excel file.

CHAPTER 5: WAREHOUSE OPERATIONAL PRINCIPLES

�Problem 2 (15 points)
• Module width = width of aisle + 2 pallet lengths (short side) + clearance between back-to-
back pallets = 3.2 + 2 × 0.8 + 0.10 = 4.90 meters
• Module length = width of upright + 3 × clearance (sides) + 2 pallets (long side) = 0.12 + 3 ×
0.1 + 2 × 1.2 = 2.82 meters
• Module height = height of pallet + clearance above pallet plus racking beam height = 0.15 +
(1.2 + 0.15) + 0.14 = 1.64 meters
• Number of width modules = Storage area width / Module width = 50 / 4.90 = 10 (rounded
down)
• Number of length modules = Storage area length / Module length = 140 / 2.82 = 49 (rounded
down)
• Number of height modules = Warehouse height / Module height = 12 / 1.62 = 7 (rounded
down)
• Total pallet capacity = (Number of width modules × pallets in a module width) × (number
of length modules × pallets in module length) × number of height modules = (10 × 2) × (49
× 2) × 7 = 13,720 pallets
Therefore, the total pallet capacity of the storage area is 13,720 pallets.

�Problem 3 (15 points)

Step 1: Define the priority of products based on the ratio 𝑇𝑇𝑗𝑗 /𝑆𝑆𝑗𝑗
The number of storage bay required for each product = Total are required/area of each bay
• 𝑆𝑆𝐴𝐴 = 1,800/900 = 2 storage location
• 𝑆𝑆𝐵𝐵 = 4,500/900 = 5 storage location
• 𝑆𝑆𝐶𝐶 = 1,800/900 = 2 storage location
• 𝑆𝑆𝐷𝐷 = 6,300/900 = 7 storage location
Since:
𝑇𝑇𝐷𝐷 800 𝑇𝑇𝐶𝐶 200 𝑇𝑇𝐵𝐵 450 𝑇𝑇𝐴𝐴 150
= = 114.29 ≥ = = 100 ≥ = = 90 ≥ = = 75
𝑆𝑆𝐷𝐷 7 𝑆𝑆𝐶𝐶 2 𝑆𝑆𝐵𝐵 5 𝑆𝑆𝐴𝐴 2
The products will be assigned to storage location follow the order: D  C  B  A

Step 2: Compute 𝑓𝑓𝑘𝑘 value for all storage locations

𝑘𝑘 Rectilinear distance from dock 𝑖𝑖 to The total rectilinear distance from storage bay
centroids of storage location 𝑘𝑘: 𝑘𝑘 to the m docks: 𝑓𝑓𝑘𝑘 = ∑𝑚𝑚
𝑖𝑖=1 𝑝𝑝𝑖𝑖 𝑑𝑑𝑖𝑖𝑖𝑖
𝑑𝑑𝑖𝑖𝑖𝑖 = |𝑥𝑥– 𝑎𝑎| + |𝑦𝑦– 𝑏𝑏|
3 𝑑𝑑1,3 = |0 – 75| + |90 – 135| = 120 For 𝑘𝑘=3: 𝑓𝑓3 = 0.35(120) + 0.35(150) + 0.15(90) +
𝑑𝑑2,3 = |0 – 75| + |60 – 135| = 150 0.15(120) = 126
𝑑𝑑3,3 = |120 – 75| + |90 – 135| = 90
𝑑𝑑4,3 = |120 – 75| + |60 – 135| = 120
7 𝑑𝑑1,7 = |0 – 75| + |90 – 105| = 90 For 𝑘𝑘=7: 𝑓𝑓7 = 0.35(90) + 0.35(120) + 0.15(60) +
𝑑𝑑2,7 = |0 – 75| + |60 – 105| = 120 0.15(90) = 96
𝑑𝑑3,7 = |120 – 75| + |90 – 105| = 60
𝑑𝑑4,7 = |120 – 75| + |60 – 105| = 90
10 𝑑𝑑1,10 = |0 – 45| + |90 – 75| = 60 For 𝑘𝑘=10: 𝑓𝑓10 = 0.35(60) + 0.35(60) + 0.15(90) +
𝑑𝑑2,10 = |0 – 45| + |60 – 75| = 60 0.15(90) = 69
𝑑𝑑3,10 = |120 – 45| + |90 – 75| = 90
𝑑𝑑4,10 = |120 – 45| + |60 – 75| = 90

Continue with the following bay, we get the total rectilinear distance from each bay to 4 docks
as follow:

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 WAREHOUSE ENGINEERING MANAGEMENT - SEMESTER 02 - 2023-2024

102 114 126 138

72 84 96 108
57 69 81 93
72 84 96 108
102 114 126 138

Step 3: Assign products to storage locations

• First, assign product D to 7 storage bays that have the lowest 𝑑𝑑𝑘𝑘 , including [5, 6, 9, 10,
11, 13, 14].
• Then, assign product C to 2 storage bays that have the next lowest 𝑑𝑑𝑘𝑘 , including [7, 12]
(Note that: Since the 𝑓𝑓𝑘𝑘 of bay 7 and bay 15 are equal, we can flexibly choose between
bay 7 and bay 15)
• Next, assign product B to 5 storage bays that have the next lowest 𝑑𝑑𝑘𝑘 , including [1, 8, 15,
16, 17]
• Finally, assign product A to 2 storage bays that have the next lowest 𝑑𝑑𝑘𝑘 , including [2, 18]
• Storage bays 3, 4, 19, 20 are available for equipment storage, restrooms, offices, and so
on.
B A
D D C B
D D D C
D D B B
B A

�Problem 4 (15 points)

S-shape Largest gap Combined

CHAPTER 6: PRODUCTIVITY, COST AND SERVICE

�Problem 5 (15 points)
a. Calculate the average used storage locations of the warehouse. Given that the average
storage space utilization of that warehouse is 85%.
• Actual number of storage locations used = 85% x 5,400 = 4,590 storage locations

b. If a loader can load 150 cases per shift, what is that loader’s utilization percentage?
• 1 shift = 8 hours = 480 minutes
• Standard cases loaded in a shift = 480 / 3 = 160 cases
• Performance of the loader = 150 / 160 = 93.75%

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c. If the warehouse’s average input is 1,750 cases on a daily basis, how many receivers
does the company need to recruit to avoid congestion at the input? Given that the
average performance of receivers is 85%.
• Standard cases received in a shift = 480 / 2 = 240 cases
• Actual number of cases received = 85% x 240 = 204 cases
• Number of receivers needed = 1,750 / 204 = 9 receivers

�Problem 6 (10 points)

a. What are the benefits and drawbacks of using 5S?
Benefits Drawbacks
• Create an organized and clean • If not fully implemented, may result in
environment “Jive S”:
• Highlight self-discipline • Store things (too much focus and energy
• Identify and eliminate wastes devoted to creating more space and
• Create more space order)
• Identify abnormalities • Stick to the rules (excessive focus on
• Identify issues in the flow of materials more and more standardization)
• Improve workplace safety • Superficially clean
• Improve quality of products/services • Switch to new fixtures
• Improve employees’ morale and positive • Serve reluctantly (some individuals in
attitude the process are not promoting the 5S
• Increase efficiency and productivity strategy)
• Increase storage density

b. What is the purpose of each S?

Purpose
Sort Eliminate clutter and clear up space by removing things that don’t
belong in the area
Set in Order Organize the work area – a place for everything, and everything in its
place
Shine Keep workplace areas clean and orderly to ensure purpose-driven
work
Standardize Incorporate the new practices into normal work procedure for long-
term change
Sustain Continue commitment and maintain discipline

c. Give examples of implementing 5S in a real-life warehouse. Students are required to

provide THREE actions for each of the five aspects: Sort, Set in Order, Shine, Standardize
and Sustain.
Examples
Sort • Remove unused or obsolete equipment, tools, and materials from the
warehouse.
• Implement a labeling system to clearly mark and identify items,
separating them based on their frequency of use.
• Set up a designated area for sorting and organizing incoming
shipments, separating them based on their type or category.
Set in • Create a visual layout of the warehouse, clearly marking the locations
Order for different items, equipment, and tools.
• Establish a standardized system for storing and organizing inventory,
ensuring that frequently used items are easily accessible.
• Use bins, shelves, or racks with clear labeling for each item, promoting
consistency and easy identification.
Shine • Regularly clean and sweep the warehouse floor to remove debris and
dust.
• Implement a daily cleaning routine for workstations and equipment to
maintain cleanliness and prevent dirt build-up.

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• Conduct routine maintenance checks on equipment and machinery to

ensure they are in good working condition and free of any defects.
Standardize • Develop and implement standard operating procedures (SOPs) for
different warehouse tasks, ensuring consistency in work processes.
• Create visual guidelines and instructions for employees to follow when
performing specific tasks, such as packing or inventory counting.
• Establish regular audits and inspections to monitor adherence to
standards and identify areas for improvement.
Sustain • Provide regular training and refresher sessions on 5S principles to
reinforce good practices among employees.
• Assign 5S champions or leaders who are responsible for promoting and
sustaining the 5S culture in the warehouse.
• Conduct periodic reviews and assessments to evaluate the
effectiveness of 5S implementation and make necessary adjustments.

CHAPTER 7: WAREHOUSE HEALTH AND SAFETY

�Problem 7 (10 points)
To minimize the likelihood of future chemical spills, the warehouse can implement several
preventive measures. These include:
• Implementing strict inventory control and labeling systems to ensure proper
identification and tracking of hazardous materials.
• Providing appropriate storage facilities with secure shelving, racks, and containment
systems designed for hazardous materials.
• Enforcing proper handling procedures, such as using designated handling equipment and
following specific guidelines for each chemical.
• Conducting regular inspections and maintenance of storage areas and equipment to
identify and address potential issues before they lead to spills.
• Establishing clear protocols for reporting spills, leaks, or damaged containers and
providing prompt response and cleanup procedures.

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