Warehouse Design Project
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Warehouse Design Project
Group Assignment
Baba Kakaye, Paige Queen, Janet Ratcliffe, Nina Ward
Florida State College at Jacksonville
TRA2098
Professor Dr. Bowman, Jr
June 12, 2021
Warehouse Design Project
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Warehouse Design Project
Introduction
FreshVegs Limited is a company that specializes in the distribution of fresh fruits and
vegetables in Houston City, Texas. The firm's mission statement is to be a service dedicated
distributor of high-quality fresh produce in the metro area of Houston, Texas. The company
outsources fresh fruits and vegetables to be grown under excellent natural environmental
conditions in several parts of Mexico. FreshVegs aims to attain an excellent reputation as a
reliable supplier of safe and fresh vegetables and fruits in a two-day delivery promise in the City
of Houston, but it will also supply other parts of Texas and neighboring states within a 3-day
delivery promise. The company works with a presentation schedule to show customers what is
“in season” and available now. Customers get to pick and choose what their next delivery will
include. Subscriptions are also available. This makes it easier for the company to plan orders. All
produce is shipped from Mexico by air or road transport. Besides distributing hard-to-find fresh
produce, FreshVegs specialized in supplying fresh produce to a diverse foreign and ethnic
cuisine in Houston. The climate-controlled warehouse makes it possible to keep products fresh
for an extended period which enhances inventory not expiring before it can be sold and delivered
to the customers.
In contrast to its competitors, FreshVegs customers appreciate the quality of the
company’s products. The firm distributes to more than 100 supermarkets, restaurants, delis, and
fresh fruits stores around Houston City. FreshVegs has partnered with different farming leaders
in Mexico to ensure that they constantly supply diverse types of fresh fruits and vegetables to
meet the customer needs. The company's primary goal is to exceed customer expectations by
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making deliveries in the most convenient way possible. It has a substantial warehouse of gardenfresh fruits and vegetables, over 30 full-time employees, and a sizeable, refrigerated truck fleet
for ensuring that deliveries reach their destination in perfect condition. In addition, FreshVegs
has extensive trade and commercial contracts in fresh Mexican produce, and it has been
supplying fresh fruits and vegetables in the City of Houston for the last two years.
Most employees have high school diplomas, and they work during day or night shifts.
However, there are five senior managers with training in warehousing and advanced degrees in
supply chain management. Daytime workers tasked with sorting and arranging products for
deliveries start their shift at 8 am and leave at 5 pm. Night shift workers arrive at 6 pm and close
their shift at 4 am daily. Deliveries to local supermarkets, delis, and restaurants are made every
morning at 5 am. There is no customer traffic planned for at the facility.
The choice for the company’s location was informed by the high demand for fresh fruits
and vegetables in Houston City. Hurricane Harvey had badly hit Houston in 2017 that caused the
death of at least 100 people and $125 billion in property destruction (Lieberknecht et al., 2021).
However, the disaster presented an opportunity to establish a fresh produce business to cater to
the region's shortage of fresh produce supply. Houston is home to a growing population with a
massive demand for fresh vegetables and fruits. As a result of its surging demand, Houston is the
largest market for fresh vegetables and fruits across Texas and beyond.
Inventory Management
The management of inventory is essential to a firm's bottom line. Besides managing the
warehouse space, the best warehouse management practices encompass an understanding of the
product flow and tracking the levels of inventory and the activities within the warehouse.
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FreshVegs uses a complete fresh produce stock control system to manage its inventories. The
system also tracks the movement and labeling of products and plays a critical role in quality
control. In addition, the company runs a climate-controlled warehouse, and the system helps in
temperature control, documentation, and registration of incoming fresh produce. Thus, the stock
control system plays a fundamental function in establishing an accurate audit trail. How do we
store our products in this refrigerated area? What % is in there? I think 100% is stored in there?
While warehouse management can be complex, technology adoption has helped
warehouse managers efficiently manage their inventories. FreshVegs Limited uses Radio
Frequency Tags to minimize inventory management problems in the warehouse. While the tags
have various essential features that perfectly solve inventory management problems, they are
also associated with a few drawbacks. Warehouse managers should consider the following pros
and cons of the use of Radio Frequency Tags before adopting them for their stores. Why? We
need to explain what we decided on. Where are the tags located on our stock? What do our tags
look like?
Inventory Count
Once the amount equals 0 on an item, we consider this 0 inventory at this certain time and
date. Our computer tells us to count every item 3 times a year to have an accurate number.
If an item hits 0, the computer notifies us so we can take advantage of this. We go and
check the last area this item was assigned to if there if actually 0 available.
If not, we count and correct our number in the computer………
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Pros of Radio Frequency Tags How do WE take advantage of the RFT’s?
One of the benefits of Radio Frequency Tags is that they do not need line of sight as one can read
data from the tags from a distance. Thus, there is no need to have an extra worker scan each item
when taking inventory. Furthermore, several tags can be read simultaneously, implying that an
entire pallet of products can be recorded once (Choong et al., 2021; Liu et al., 2019). Also, the
Radio Frequency Tags hold more data than barcodes, which are merely identifiers tying to a
database that stores the actual information. Therefore, the warehouse workers can easily read
data stored in the tags without a database connection. In addition, warehouse workers can place
radio Frequency Tags in the entrance and exits to allow for real-time inventory tracking, thereby
telling when products arrive or leave the warehouse (Choong et al., 2021). Finally, the tags offer
real-time inventory tracking, which can assist in floor space optimization. A warehouse manager
can easily know the items that are moving easily and those that are rarely collected.
The Cons of Radio Frequency Tags same note as above. What are the cons FOR US in our
warehouse regarding usage of RFT tags?
Despite their immense benefits, Radio Frequency Tags are also associated with a few limitations
in warehouse management. For instance, it is expensive to install them, making it difficult for
small warehouse owners to take advantage of the efficiency that comes with their use. Also,
Radio Frequency Tags have interference issues since the presence of a metal or liquid between
the tags makes it impossible for the reader to do their job from a distance (Liu et al., 2019).
Furthermore, Radio Frequency Tags have not been standardized, and tags and data formats vary
across various manufacturers, industries, and countries. Thus, the cost of tracking inventory
across sectors or countries can be high when using them.
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Overall Impact of Radio Frequency Tags in Inventory Management in my eyes,
unnecessary info since we decided carefully what we apply to our warehouse.
Although Radio Frequency Tags have some limitations, the overall impact on warehouse
management is excellent. They increase inventory management efficiency by saving time and
cost (Liu et al., 2019). Nevertheless, warehouse managers should always consider both the
benefits and the disadvantages associated with Radio Frequency Tags before adopting them to
manage their inventories.
Considerations for Warehouse Automation What automatization will WE use?
Warehouse automation helps in enhancing the efficiency of operations within the store as it
eliminates tedious manual tasks. Nevertheless, various critical considerations must be made
before a warehouse is fully automated. For instance, warehouses can use them to reduce the
unnecessary labor cost involved in arranging items. Automation takes the place of employees,
thereby reducing possible labor constraints (Choong et al., 2021). Furthermore, warehouse safety
is enhanced through automation as workers with psychological or emotional problems are prone
to errors that threaten their safety within the warehouse. In addition, automation can be used to
increase accuracy and optimize space use (Choong et al., 2021). However, it is crucial to
consider their initial investment, training, and maintenance costs. Automation is also not suitable
for highly variable operations since they work according to some standardized processes.
Cost-Benefit Analysis when Selecting to Automate Why did we decide for our system.
Needs to be applied for us, and not only as a strategy.
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A cost-benefit analysis would help in making valuable automation decisions within the
warehouse. The first step in cost-benefit analysis involves describing the planned system and
possible alternatives to see how the system would change operations (Andiyappillai, 2020).
Second, list all stakeholders and weigh if automation would add value to them. Next, itemize the
intangible and tangible costs and create a list of potential benefits (Endo et al., 2020; Little,
2017; Scher et al., 2020). Make the outcome predictions based on the benefits and costs of
automation and analysis of the use of the same system in a similar warehouse. The next step
involves determining the value and payback time, performing sensitivity analysis, and creating
recommendations for the system's adoption.
Warehouse a out
ncoming
an
Fresh egs imited
utgoing
oading area
eception area
torage area
efrigerator area and palet bo stock area
icking area
ispatch area
er ice area
, , , inside the building
The loading and unloading areas (area A) should always be located outside the
warehouse. Still, they can also be integrated into the main warehouse where the trucks bringing
or distributing goods can directly access the areas. The reception area (area B) is independently
located because it serves as a place for receiving goods and the sorting and quality control area.
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Storage areas (area C) are strictly used for the storage of goods and hence centrally place. Order
picking areas (area D) are not required, but they are necessary when outgoing products need a
configuration or modification. In this case, the order picking area is integrated with the storage
area since orders are picked from rack units. The dispatch area (area E) is used for dispatched
products and loaded into distribution or delivery trucks. Finally, the service area (area F)
comprises all warehouse support activities, including offices, bathrooms, battery recharging, and
changing rooms. The management office should be positioned between the reception and
dispatch area to pro ide more e cellent operability. lease find “Warehouse ayout lan” in our
Power Point presentation for a visual on how the warehouse is divided into areas.
Supplier Selection
Supplier selection is essential as it determines the efficiency in meeting the customer
demands and fast delivery. The suppliers used by FreshVegs Limited are all Mexican companies
that directly deal with farmers. All the suppliers are carefully vetted to ensure that their visions
align with reshVegs’ ision and alues. or instance, reshVegs discourages e cessi e use of
agrochemicals, child labor, and overexploitation of farmers. All three companies' strategic
decisions are made in consultation with FreshVegs to ensure the compatibility of all the business
core values. Multiple sourcing strategies are used in supplier selection whereby three different
companies supply a different assortment of vegetables and fruits. Multiple sourcing strategies
ensure that demand is spread across several suppliers to meet the customer needs better. For
instance, Coburch Trading and Berry Lovers companies supply fresh fruits only, while Veljet
International supplies fresh vegetables to the Houston-based warehouse (Europages, n.d.). The
ideal supplier for us must meet the following criteria:
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It must be a Mexican company dealing with local farmers.
·
Must be environmentally responsive.
·
Reasonable value/cost
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Meet international standards.
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Certified to export vegetables into the US.
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Does not support child labor.
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Must demonstrate the capacity to meet sudden huge demands, and
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Must agree to integrate their supply chain with FreshVegs Limited.
Storage Area
Our storage room, the refrigerated area, is set at a certain temperature to best suit the
produce that moves through it. There are 5 different teams we use that are on rotation 7 days a
week. Each member of the team will comply with food safety requirements: hair restraints,
gloves will be worn and will not eat, drink, or smoke around the produce. Any team member
involved in repackaging must have a signed health policy document on file. Color, quality,
repacking are all integral parts of our business. In our warehouse, we use a Compac Sorting
Equipment state of the art machine. By running all the fruits and vegetables through this
machine, the machine is also able to sort and pack the produce in the following storage
containers:
The types of storage for the produce will be the following:
•
Lewis Bins Stack-N-Nest Agricultural Containers
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o 23-29 32” X 16” X 8-13 16”, Green
•
Global Industrial Easy Assembly Solid Wall Bulk Container
o 39-1 4”
•
X 31-1 2”WX29”H
Shelf Bin Organizer -36X18X39” with 11X18X4” lue ins
Once in the storage containers, workers move the produce to the palletizing zone. This is
where they are placed on pallets or roll cages. They are then wrapped tightly in plastic foil to
hold all containers in place. The repacked product has a label included stating the common name
of the product, name and place of manufacturer, packer or distributor and net quantity of
contents in the repackaged item. Then they are moved to the loading trucks located in area A of
our warehouse layout plan.
Repackaging-bulk-food.pdf(wisc.edu)
The refrigerated storage set room is set up in the warehouse for the fruits and vegetables
according to temperature. The very cold group, 32-38F, would house such produce as cabbage,
celery, corn, apples, pears. The cold group, 45-50F, would house such produce as pepper
(sweet), squash, cucumbers, lemons, okra. The cool group, 55-65F, would house such produce as
tomato bananas, onions, and tomatoes. By storing produce in the proper temperature range, this
will prevent damage, decay, and pest infestation. Cabbage, in the very cold group max time for
storage is 12-16 weeks. All loose leaves are trimmed before storage, and they are stored in a
vertical direction with the depth not exceeding 9.8 feet. Pepper, in the cold group max time for
storage is 2-3 weeks. They are picked when ripe and sensitivity varies with ripe or colored
peppers. Tomatoes, in the cool group max time for storage is 1-4 weeks. They are palletized and
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tomatoes are also known to ripen while being room-cooled although forced air cooling produces
better quality tomatoes.
Cold Storage for Fruit and Veg (crscoldstorage.co.uk)
https://rvpadmin.cce.cornell.edu/uploads/doc_500.pdf
The refrigerated storage room has three coolers that are 1,000 cubic feet and three
freezers that are 1,000 cubic feet as well. These refrigerator storages will be along the right-side
wall of the building lined side by side all the way down in area C of our warehouse layout plan.
As the containers with the produce is stored, our warehouse uses private labels to mark each
container with expiration dates.
www.usda.com
Order Fulfilment
Explain how ONE order is processed through the facility. From customer order placement to fulfillment
to the customer address. Slide is there to help.
-----------------------------------------------------------------------------------------------------------------------------------------•
•
•
•
WHAT STORAGE SYSTEM DO WE USE? FIXED location system?? Random-location system?
Random assignment? Zone assignment? Zone random storage?
How and where do we store our products? Do we repack the deliveries? In what container do
we store the deliveries? Do we have/use forklifts?
How do we make sure we will deliver the best quality to the customer????
Missing Conclusion
Warehouse Design Project
Is our warehouse efficient because of application of strategies?
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References
Andiyappillai, N. (2020). Digital Transformation in Warehouse Management Systems (WMS)
Implementations. International Journal of Computer Applications, 177(45), 31-37.
https://www.researchgate.net/profile/NatesanAndiyappillai/publication/339986803_Digital_Transformation_in_Warehouse_Managem
ent_Systems_WMS_Implementations/links/5e76aecb299bf1892cff045a/DigitalTransformation-in-Warehouse-Management-Systems-WMS-Implementations.pdf
Choong, C. S., Nasir, A. F. A., Majeed, A. P. A., Zakaria, M. A., & Razman, M. A. M. (2021).
Automatic identification and Categorize Zone of RFID reading in Warehouse
Management System. In Advances in Mechatronics, Manufacturing, and Mechanical
Engineering (pp. 194-206). Springer, Singapore. https://doi.org/10.1007/978-981-157309-5_20
Endo, T., Kimura, N., Nagao, J., & Utsugi, K. (2020). Warehouse Automation Design for Laborsaving and Automation in Logistics Center Operations. Hitachi Review, 70(2), 160–161.
https://www.hitachi.com/rev/archive/2021/r2021_02/pdf/02a02.pdf
Europages. (n.d.). COMPANIES - SUPPLIERS - SERVICE PROVIDERS fruit & vegetables,
https://www.europages.co.uk/companies/Mexico/fruit%20&%20vegetables.html
Lieberknecht, K., Zoll, D., Jiao, J., & Castles, K. (2021). Hurricane Harvey: equal opportunity
storm or disparate disaster? Local Environment, 26(2), 216-238.
https://doi.org/10.1007/s11069-021-04536-9
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Little, M. L. (2017). What Warehouse Automation Best Practices Should USSOCOM Consider
Using. Defense Acquisition University Huntsville United States.
Liu, H., Yao, Z., Zeng, L., & Luan, J. (2019). An RFID and sensor technology-based warehouse
center: assessment of new model on a superstore in China. Assembly Automation.
https://doi.org/10.1108/AA-09-2018-0144
Scher, G., & Kress-Gazit, H. (2020, August). Warehouse Automation in a Day: From Model to
Implementation with Provable Guarantees. In 2020 IEEE 16th International Conference
on Automation Science and Engineering (CASE) (pp. 280-287). IEEE.
https://doi.org/10.1109/CASE48305.2020.9217012
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