Acme Final PresentationTeam Ramrod

Project Leader:Clint Hobbs

Team Members:JR ThompsonAnthony BruniAustin Florian

Background

ACME is a wholesale footwear distributor

Current distribution center is at storage capacity and landlocked, restricting growth in place

Lease expires in July 17, ACME wants operations moved no later than the end of 2016

New DC needs to have minimal risk with no negative impact on customers

Flaws in Current Operations

Do not utilize cross docking to its potential

Storing “E” SKU’s that do not move

Too small for future operations

Solutions to current problems

Store everything in the warehouse by cartons

Only take pallet orders that are completely full

Cross docking can now be utilized

Eliminate E SKU category when we move to new DC

Warehouse Layout

Total Warehouse Dimensions:

1300’ long x 720’ wide x 30’ high

Shelving Areas

A- 544x670 ft

B- 308 x 670 ft

C- 223 x 670 ft

D- 180x 670 ft

Inbound and Outbound Areas

62x 145 ft (Inbound)

Outbound

Storage

To determine total storage area, we first had to determine how many units we

would need to have in the warehouse at any given time

We used the inventory turnover ratio, 3.7, determine how many units would be

on hand

Safety Stock

From there, we needed to account for safety stock

In the given Powerpoint, they provided us with the average number of safety

stock and the first standard deviation, as well as the medians for every

velocity

Using the formula below, we figured how much safety stock we would need to

have on hand at any given time

Units to Store

Adding inventory with safety stock, we can see how many units we plan on

storing in our warehouse at any given time

From there, we came up with a uniform storage plan

Size of our uniform carton (inches)

Storage Layout

Once we knew how many units to store and the volume of the cartons we would

be storing them in, it was just conversions

Shelving and Row Details

Outbound Units

Daily Units

Inbound/Outbound

Mirror images of each other

10 doors for each

5 conveyor belts each

1 sorter at each

Dimensions

Infrastructure Materials

Conveyer Belts

Chutes

Control System

Sorters

Scanners, Metering Belts, Inductors

Forklifts

Platform Trucks

Steel Hand Trucks

Infrastructure Calculations

Infrastructure Equipment

Improved Operations

Units are brought in through inbounding docks, depalletized into cartons and put

on elevated central conveyer belt

If items are being crossdocked, they will remain on the central conveyor and run

through the length of the warehouse aboveground

Belt runs through center of warehouse, push sorter pushes cartons down chutes

to appropriate SKU pickup area

Put away employees scan cartons and load them onto platform trucks

Cartons get stored manually or using a forklift

Warehouse Layouts

New Process Flow Chart

Labor Information

Calculating Days

Old vs New

To 2021

Implementation Timeline

ROI

Depreciation

Financial Analysis-NPV

QUESTIONS?