TRA 2098 Florida State College at Jacksonville Warehouse Design Project Essay

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Warehouse Design Project 1 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 2 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 Warehouse Design Project 3 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. Warehouse Design Project 4 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……… Warehouse Design Project 5 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. Warehouse Design Project 6 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. Warehouse Design Project 7 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. Warehouse Design Project 8 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: Warehouse Design Project · 9 It must be a Mexican company dealing with local farmers. · Must be environmentally responsive. · Reasonable value/cost · Meet international standards. · Certified to export vegetables into the US. · Does not support child labor. · Must demonstrate the capacity to meet sudden huge demands, and · 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 Warehouse Design Project 10 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 Warehouse Design Project 11 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? 12 Warehouse Design Project 13 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 Warehouse Design Project 14 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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Warehouse Design Project

1

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

2
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

Warehouse Design Project

3

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.

Warehouse Design Project

4

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. Since the
products are highly perishable, maintaining optimum conditions within the warehouse plays a
key role in keeping product quality consistent with the client needs. 100% of the products are
stored in the refrigerated area. The fruits and vegetables are kept at a set temperature within the
refrigerated area hence keeping them fresh. Refrigeration reduces the risk of damage and extents
the products’ shelf-life.
While warehouse management can be complex, technology adoption has helped
warehouse managers efficiently manage their inventories....


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