Assessment Cover Sheet

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Assessment Title

Designing a warehouse

Programme Title:

Freight and warehouse operations

Course No.:

TLB 5001

Course Title:

Freight and warehouse operations

Student Name:

Ali Salman

Student ID:

201100901

Tutor:

Wesley lee

06/11/2011
Due Date:

05/11/2011
Date submitted:

By submitting this assessment for marking, either electronically or as

hard copy, I confirm the following:
This assignment is my own work

Any information used has been properly referenced.

I understand that a copy of my work may be used for moderation.
I have kept a copy of this assignment
Do not write below this line. For Polytechnic use only.

Assessor:

Date of Marking:

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Comments:

Introduction
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Warehouses are facilities in the supply chain where goods are held or stored.
Warehousing affects customer service levels, stock-out rates and the success
of a firms sales and marketing efforts. The warehouse is emerging as a vital
component of a firms supply chain. Even in its traditional role, warehousing
involves the performance of the basic functions of transportation, storing and
information transfer, which reflect its importance in the supply chain (CILT,
2006). There are many types of warehouses like commercial warehouses,
Refrigerated

Warehouses,

Consolidation

Warehouses

and

distribution

warehouses. This Warehouse is a distribution warehouse. A distribution

warehouse is used for temporary storage and redistribution of the goods
according to the customers orders, and it is usually smaller than the other
warehouses (What is distribution warehouse, N.D).
The companys name is Alitronics and it is an electronic products distributor
which imports electronic goods to Bahrain and distributes it to other retailers,
or sometimes to nearby countries. This Company imports a wide range of
electronic products like white goods and brown goods. White goods are the
large household appliances like refrigerator, air conditioner, and dish washer
(What are white goods, N.D). Brown goods are the small household
appliances like laptops, mobile phones, and computers (What are brown
goods, N.D).
The warehouse is located in Al Hidd, and the reason for this location is the
short distance between the warehouse and the Khalifa Bin Salman Port which is
the biggest port in Bahrain, so when goods arrived by ships,

they can be

transported to the warehouse conveniently. Another reason for this location is

the short distance between the Bahrain International Airport and the
warehouse which is only 4 km. The biggest advantage is that the warehouse is
located between both the air and sea ports in Bahrain so this really helps the
importing and re-exporting process.
This report will explore the principles of designing a warehouse in relation to
the products that Alitronics deals with and come up with a comprehensive and
workable warehouse design. The warehouse operations and the equipments
used will be briefly explained with the floor plan of the warehouse.

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Principles of the warehouse design

Unit loads
For uniting loads, each racket should be used for only certain type of goods,
which are the same size and shape of each other. The size of each rack is the
size a standard pallet, as it is easier to assemble the similar goods with each
other and put in the same racks. Bulky items which are similar can easily fit in
on top of each other to make more space

Using warehouse cube

Warehouse cube is utilizing the cubic area of the warehouse to make more
room for storage. The warehouse is 14 meters high, 100 meters long and 50
meters width with a cubic size of 1500 meters. The height of the racks and
shelves are 12 meters high, and the reason for this is to take advantage of the
height which costs lesser than expanding the cubic area, which is expensive.
Narrowing the width of the aisles is a good way of using warehouse cube but it
may cause congestion and slower transportation, besides that special
equipments should be used which are expensive. Three types of aisle widths
are used in these warehouses which are the wide aisle, narrow aisle and the
very narrow aisle.

Minimizing movement

It is all about reducing the cycle time. By minimizing the movement of goods in
a warehouse, time and resources can be saved which adds up additional
expenses. In this warehouse, movement minimization is frequently used.
Similar stocks are placed near each other in one place so the picking process
would be much easier. Fast moving goods and the most picked goods will be
placed in the beginning of the racks which are near to the dispatching area to
make the process faster. Batching orders and picking the same product, which
means the picker, will go to a place only once to get the goods needed for a
number of orders rather than for only one order.
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Controlling flow

The flow of this warehouse is a U-flow were the inbound and outbound are on
the same side of the warehouse, near to each other. U- Flow is better for lift
truck utilization as the trip of the goods is short because everything is close to
each other. The other type of flow system is the through flow where the goods
enter in the warehouse from one side and come out in the opposite end, far
away from each other. More lift trucks should be used in this type of flowing as
there is more distance to cover. (u flow and through flow, 2009)

Safety and security

Safety of the workers and the goods is a very important issue and must not be
forgotten; In fact it is one of the most important principles. The warehouse has
8 emergency doors (red dots on the floor plan); most of them are near the
storage racks to provide an escape from any emergency like fire or crackdown.
The warehouse is fully air conditioned, and humidity sensors are placed in most
parts of the warehouse to ensure that the humidity of the warehouse is normal,
and to avoid the damage of the goods as they are all electrical devices. Smoke
detectors are equipped in the warehouse to detect fire. When smoke is
detected the alarm will be set and the location of the fire will be shown on the
computers so the fire can be extinguished as fast as possible. The illumination
of the warehouse is high for further safety of the workers. There are some
areas which the forklifts are forbidden to enter like the I section and the S
section where only the workers are allowed to roam there without any forklifts
to ensure their safety. The whole warehouse is monitored by 50 cameras
recording every angle of the warehouse to make sure that everything is done
correctly and safely and to prevent theft. The floor of the warehouse is lined up
with signs for the forklifts to follow and know their routes and boundaries. The
floor is designed in a way so it can endure high pressure and heavy objects.

Warehouse Operations

Types of storage

The warehouse has 7 sections of storage racks and shelvings in which every
section is used for a different purpose. Similar goods will be stored in the same
section. Section A, B, C, D are normal racks used for storing goods that are not
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bigger than the size of a pallet like computers, small TVs. Section L is used for
bulky goods such as refrigerators, dish washers. We have an I section were
static shelving and item picking are used for small insensitive items like laptop
chargers, clocks, etc. We have an overflow section which is for the emergency
goods, when the racks are full, extra goods will be stored temporarily in the
overflow area until space is available in the racks or it could be sent directly to
the dispatch when orders come in. Sensitive goods like I phones, notepads,
Smart phones which need extra care and more attention will be stored in the
special storage area (S).

Types of picking operations

Piece picking, Case picking, pallet picking are used in this warehouse, where
the piece picking method is used near the small shelves which store small
items. The pallet picking process is done in the normal storage area with the
normal size goods. The case picking is done with the bulky goods which are in
the bulky storage area, and that is done to prevent any hustle and to ensure
the safety of the bulky and other goods.

Receiving

The receiving area is where the goods are received and prepared for
marshalling. The receiving area has docks which are used for the trucks to
unload the goods into the warehouse directly without getting in. The goods will
be unloaded directly from the trucks by the workers using cantilevers and then
will get transported to the marshalling area using forklifts.

Dispatching

The dispatching area is the last place where the goods will pass through before
leaving the warehouse. Goods get prepared for leaving the warehouse from
this area. The goods will get out of the warehouse from the docks directly in to
the trucks using cantilevers.

Additional operations

Some additional operations which take place in the warehouse which are not
mentioned, is the cross docking. The goods get cross docked in the dispatching
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and sorting areas. Cross docking is used for mixing different products and
consolidating them together, and then sending them to retailers.

Work flow

The flowing system of the warehouse is a U-flow system and the reason for
that is because of the main objectives of the warehouse which is a distribution
warehouse and U-flow helps distribution more than a through flow system.
During through flow the goods have to travel through the whole warehouse
which wastes time while in a U-flow the goods only travel through certain areas
of the warehouse, and is better for cross docking as the receiving, marshalling,
dispatching areas are all close to each other. The goods enter from the bottom
left of the warehouse, where they will be handled in the receiving area by the
workers and after that, goods will be sent to the marshalling area, which is
exactly on the right of the receiving area, and there the goods will get sorted
and decided to be stored in which section depending on the kind of the goods
or the orders received from the retailers whether the goods are fast moving
goods or not. After marshalling goods will be sent to their designated storage
areas which are in the upper half of the warehouse and will be kept there until
orders are received for dispatching. After the orders are received, goods will be
sent to the marshalling area and will be prepared for dispatch and some of
them will be sent to section I for item picking. Then the item picking goods will
be packed and sorted in the sorting area and will be sent outside from the
bottom right of the warehouse. Sometimes bulky goods are sent straight to
their storage place or straight to the dispatching area without getting to the
marshalling area. After each step the workers will barcode scan the goods to
update the database with the exact locations of the goods, date and time of
the process. (Warehouse management, N.D)

Equipment

Racks and shelves

Section L which is used for bulky goods, which has wide aisles to allow different
forklifts to pass through easily and get easy access to the goods as they are all
bulky items. Deep double racking is used in this section to provide more
storage space. The height of the racking in this section is only 8 meters, as it is
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hard to manage bulky items in tall areas. Section I which is an item picking
area, it has small shelves and very narrow aisles as this section does not need
forklifts, items can be man handled in this section. In section A, B, C, D normal
racking which are 12 meter high are used and narrow aisles to utilize the
space, as the goods are all the same size of a pallet and can be fit easily
through the aisles. For section S, shelves are used and the aisles in this section
are very narrow aisles because the goods are small and they can be get
accessed to without forklifts.

Picking equipment

All the forklifts work on electricity and use cushion tires. The reason for using
electric forklifts is to prevent pollution in the warehouse as it is not safe for the
workers and the goods. For the bulky goods, counter balance trucks and
Standard Trucks are used, as they can carry bulky items and work perfectly on

wide aisles. For the normal goods reach trucks are mainly used with the Swing
Mast Trucks, as the heights of the racks are 12 meters and the reach trucks can
fit in the narrow aisles easily. Barcode scanners and Voice-directed Picking are
used to make sure that the right product is being picked. (Types of forklifts,
N.D)

Specialty equipments in relation to the products

There is no special equipment for the products but the handling of the goods
should be with care and humidity sensors are placed in the warehouse because
the electronic goods can be damaged by humidity.

Floor plan
(Attached at the end of the assignment)

Business offices

The business offices are placed directly between the receiving area and the
dispatching area. It is placed in the bottom middle of the warehouse, allowing
the offices to have a full view of the warehouse, and precisely to have a great
view on the receiving and dispatching areas to ensure that everything is done
correctly and safely, and to observe how the workers are doing their jobs. The
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office building is two floors; the first floor has 15 offices while the second floor
has 25 offices. Two security offices are located in this area, one on the left side
near the receiving area and the other on the right side near the dispatching
area. The building also includes a room for medical emergencies, toilets and an
invoice room on the right, just near the dispatching area.

Receiving and dispatching areas

The receiving area and the dispatching take quite a big space from the
warehouse and are located in the bottom of the floor plan, where the receiving
is on the left side and the dispatching is on the right side. They are both
between the offices and the marshalling area which makes the flow of goods
faster and easier. Fast moving goods can be sent directly from the receiving to
the dispatch easily and without wasting time as they are very close to each
other.

Marshalling area

The marshalling area is placed right between the receiving and dispatch areas.
The marshalling area is big and is divided into two parts, one for the receiving
area and the other for the dispatching area. The left part of the marshalling is
used for receiving goods, the goods get sorted and labeled for bar-coding there
and get decided to be stored in which part of the storage area and in which
rack or shelve so that similar items will be placed near each other to make
order picking easier. The right side of the marshalling are is used for preparing
the goods for dispatch. The arriving goods from the storage area get sorted
and cross docked and sent to dispatching area to get to the right dock number
and the right truck. Late arrived goods or very fast moving goods can be sent
directly from the marshalling area to the dispatching area without being stored,
and without passing through a long distance, as the marshalling area is very
near to both receiving and dispatching areas.

Storage area

Sections A, B, C, D are located in the upper middle of the warehouse plan and
they are used for pallet sized goods. Section L is for the bulky items and it is
located at far end of the warehouse away from the normal goods, and the
reason for that is to prevent the interaction between the bulky and normal
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goods to ensure their safety. Section I is located on the right side of the
warehouse and it is used for small items and item picking. Section O which is
an overflow section is located on the left side of the warehouse. The fast
moving goods will be stored in section A and D as they are very close to the
receiving, marshalling and dispatching areas.

Docks

Docks are used in this warehouse for the process of the outbound and the
inbound. This warehouse has 10 docks equally divided between the receiving
and dispatching areas. We have two special docks one for the inbound and the
other for the outbound which are used for the bulky items which can not fit
through the normal docks. The heights of the docks are the standard heights.

Extra storage

We have 3 storage areas which are for different purposes than the other
sections. The special storage is located on the left side of the warehouse right
above the receiving area in the floor Plan. It is very close to the receiving area
to shorten the time and distance of travelling of the special goods, for ensuring
the safety of the special goods. This section is for goods that may need
different temperatures or specialized handling. The overflow storage is on the
left side of the warehouse above the special storage area. The damaged cargo
area is on the left side of the warehouse between the special storage area and
the overflow area. It is a small area used to keep the damaged goods
temporarily until actions are taken place.

Employees lounge

We have an employees lounge for employers and workers to go during their

break time and ease off the work stress and relax for some time, the lounge
has a canteen and a TV and a place for relaxing. The goal of this lounge is to
keep the employees satisfied and motivated.
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Conclusion
This report explained the functions and operations of this warehouse with
subliminal details. The warehouse is in a strategic position which makes it a
very good warehouse. The safety of this warehouse is very high for both the
workers and the goods.
Recommendations

The forklifts should not enter the no forklifts zone for the safety of the
workers.

The ventilation of the warehouse should be suitable for the workers

Bulky good should be kept away from the normal goods.

Location of the goods should be bare-coded after every process

The racks should be numbered to make the process easier.

Specia
Overflo
l
w
Storag
(o)
e
(S)
Damage

L1

B
A
1
1

L2

B
A
2
2

B
A
3
3

L3

B
A
4
4

B
A
5
5

L4

B
A
6
6

B
A
7
7

L6Loung
L9
L8
L7

L5

B
A
8
8

D
C
1
1

D
De D
C C
CD
C
2
3 4
8
7
6
2Sorting/
3
45
8
7
6
5

Marshalling
area
Receiving
Dispatch
Offices

d
Cargo

9
Packing
Area

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References
The Chartered Institute of Logistics and Transport (2006). Warehouse operations

Inbound

Outbound

Types of forklifts. (N.D). retrieved from

http://www.buzzle.com/articles/types-of-forklifts.html
U flow and through flow. (2009, January). Retrieved from
http://warehouse-layoutdesigns.blogspot.com/2009/01/pleasereadthroughflow-and-u-flow.html
Warehouse management. (N.D). Retrieved from
http://books.google.co.uk/books?id=fe0O6Q16mzEC&pg=PA161&lpg=PA161&dq=uflow+warehousing&source=bl&ots=4PTcyky-Uj&sig=9nBPJpixjtxY-0CyxZav-rR7u0&hl=en&ei=GnmdTpPmAc7FtAaLvsC3CQ&sa=X&oi=book_result&ct=result&resnu
m=10&ved=0CIcBEOgBMAk#v=onepage&q=u-flow%20warehousing&f=false

What are brown goods. (N.D). Retrieved from

http://wiki.answers.com/Q/What_are_brown_goods
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What are white goods. (N.D). Retrieved from

http://www.wisegeek.com/what-are-white-goods.htm
What is distribution warehouse. (N.D). Retrieved from
http://www.businessdictionary.com/definition/distribution-warehouse.html