1

 
 

WAREHOUSE  LOGISTICS  AND  INTERNAL  

DISTRIBUTION  OPTIMIZATION  
B ARBOSA  E   A LMEIDA   V IDRO   –   C ASE   S TUDY  
 
Maria  Victoria  Camacho  
 
Instituto  Superior  Técnico  –  Universidade  Técnica  de  Lisboa  
 
July  7,  2011  
   
Abstract:   The   industrial   macroeconomic   environment   in   which   companies   are   developed   today   is  
characterized  by  being  highly  demanding  and  competitive.  Success  or  failure  depends  not  only  on  the  ability  to  
adapt  to  market  requirements,  but  also  on  the  efficiency  level  of  the  applied  practices.  In  this  sense,  the  increase  
in  productivity  in  warehouse  operations  has  a  direct  influence  on  the  optimization  of  logistic  processes  in  the  
company,  thus  giving  a  competitive  advantage.  After  studying  the  stock  behavior  using  different  criteria  for  ABC  
analysis,   this   paper   proposes   and   analyzes   different   layout   alternatives   for   reducing   times   and   distances   in  
warehouse  activities,  while  increasing  the  storage  capacity  of  the  warehouse  compared  to  the  current  situation.  
The  present  work  is  implemented  on  a  real  case  study  with  specific  conditions  in  the  finished  product  warehouse  
of   a   glass   packaging   factory.   A   set   of   indicators   was   developed   in   order   to   evaluate   the   performances   of   the  
suggested  layouts.  Other  suggestions  on  systems  and  division  in  zones  of  warehouse  layout  are  presented  in  an  
attempt  to  increase  productivity  in  warehouse  processes.  
Key  words:  Warehouse,  layout,  internal  logistics,  KPI,  internal  distribution.  
1. INTRODUCTION   imbalances  in   the   supply   chain,  giving   to   it   more  
flexibility   while   stabilizing   it.   A   good  warehouse  
Warehousing   can   be   defined   as  the   process   in   management  is   a   pre-­‐requisite   for  achieving  a  high  
which   three   main   functions   are   level  of  customer  service  (Frazelle  2002).  
accomplished:  receiving   products  from   a   source,  
storing  products  as  long  as  necessary  until  they  are   The  process  of  warehousing  involves  a  series  of  
requested   (internally   or  externally)   and   retrieving   sequential  activities,  namely:  reception  of  the  goods,  
the  products  when  they  are  demanded  (Queirolo  et.   put-­‐away,   storage,   order   picking,   sortation,  
al.   2002).   It   is  one   of   the  most   important   levels  of   unitizing  and  shipping  (Frazelle  2002).  This  paper  is  
the   supply   chain,  although,   it   is  an  activity   of  high   focused   on   the   put-­‐away   activity.     Put-­‐away   can   be  
financial   cost  for   companies,  standing   for   defined   as   the   act   of   placing   merchandise   in   storage  
approximately   2-­‐5%   of   total   costs   (Frazelle   2002).   (Frazelle  2002).  It  can  be  considered  a  reverse  pick  
Thus,   by   improving   its   internal   operations,   the   and   is   characterized   by   long   distances,   especially  
performance   of   the   company   is   also   improved.   when  a  random  storage  system  is  applied,  which  is  
Current   initiatives,   such   as   just-­‐in-­‐time   businesses,   the   case   in   the   current   study.   Travel   and   handling  
attempt   to   eliminate   warehousing   as   a   level   in   the   can   be   minimized   by   generating   a   put-­‐away   route  
supply   chain.   However,   it   is   very  difficult   to   according   to   layout   slotting   and   frequency   of   use  
achieve  the   organization  needed   to   coordinate  the   (Liebeskind   2005).   Therefore,   layout   must   be  
different   levels   and   suppress   warehouses   from   the   established   by   level   of   activity   or   popularity   of   the  
process. Storing   products   compensate  
 
 Warehouse  logistics  and  internal  distribution  optimization   2  
 

products,   so   as   to   separate   fast   from   slow   logistics   by   elaborating   warehouse   layout   models  
movement  products  (Hales  2006).   using   triple   pallet   lanes   for   the   warehouse   located  
near   the   end   of   the   production   line.   KPI   were  
Most   literature   provides   a   global   approach   for  
optimizing   processes   in   the   warehouse,   such   as   developed  to  evaluate  the  models  and  select  the  one  
that   displayed   the   best   results.   The   layout  
models   for   picking   and   general   warehouse  
alternative   selected   must   reduce   the   time   spent   in  
optimization  models.  Gua,  Goetschalckx  &  McGinnis  
the   put   away   process,   optimizing   it.   It   is   also   an  
(2007)   presented   and   extensive   review   on  
objective  of  this  investigation  to  obtain  and  analyze  
warehouse   operation-­‐planning   problems,   which  
product   data,   as   to   identify   quantities   and   types   of  
were   classified   according   to   basic   warehouses  
functions.   The   aim   of   this   paper   was   to   establish   a   stock.   Additionally,   this   work   aims   to   establish  
zones   according   to   a   previous   classification   of   the  
bridge   between   academic   research   and   real  
inventory.    
warehouse   practices,   explaining   planning   models  
and  methods.  Baker  &  Canessa  (2009)  elaborated  a   2. PROBLEM  DESCRIPTION  
literature   review   in   warehouse   design,   validating  
their  results  with  warehouse  design  companies.  The   The   present   investigation   took   place   between  
result   was   a   general   framework   of   steps,   with   February   and   May   of   2011,   in   the   Portuguese  
specific   tools   and   techniques   that   can   be   used   for   manufacturer   company   of   glass   containers   –  
layout  design.     Barbosa  and  Almeida,  located  in  Lisbon.  

The   closest   study   appears   to   be   Chan   and   Chan   Barbosa   &   Almeida   Vidro,   S.A.   is   a   Portuguese  
(2011),   which   aimed   to   present   a   simulation   for   a   company   specialized   in   producing   glass   containers  
real   case   study   about   manual-­‐pick   and   multi-­‐level   for  food,  drinks  and  pharmaceutical  industries.  The  
rack.   This   study   focuses   on   a   storage   assignment   company,   which   owns   installations   in   Portugal   and  
problem   in   an   ABC   warehouse   and   use   Spain,  has  recently  acquired  a  new  facility  in  Lisbon.  
measurements  of  travel  distance  and  order  retrieval   The   building   analyzed   in   this   case   study   was  
time   to   determine   performance.   In   other   studies,   originally   built   for   train   assembling   and   was   not  
such   as   Roodbergen   &   Vis   (2006),   a   model   for   intended   to   store   goods.   It   was   later   adapted   to  
warehouse  layout  optimization  was  built.  The  main   perform   the   functions   of   a   warehouse   despite   its  
objective  was  to  find  the  optimal  number  of  aisles  in   several   limitations   of   infrastructure   and   non-­‐
an   order   picking   area.     The   study   considered   favorable   conditions.   The   columns   to   support   the  
manual   order   picking,   in   which   pickers   walk   or   structure  stand  in  the  middle  of  the  building  and  the  
drive   through   a   rectangular   picking   area   with   no   dimensions  of  the  facility  makes  it  difficult  to  adapt  
unused   space.   Also,   Hwang   and   Cho   (2006)   any  optimized  layout  model  in  order  to  achieve  and  
developed   mathematical   and   simulation   models   optimal  design.    
considering   probabilistic   demand   and   picking  
Products   are   stored   on   pallets,   universally  
frequency.  A  computer  program  was  also  developed  
recognized   as   the   base   for   unitary   loads.   A   pallet  
to  test  the  results.      
consists   in   a   portable,   horizontal,   rigid   platform,  
Other  studies  presented  ABC  stock  classification   generally   made   of   wood,   used   for   storing,   stacking,  
through   implementing   different   methods,   such   as   handling   and   transporting   products   as   a   unitary  
Hua   and   Song   (2011),   who   proposed   expansion   of   load   (Twede   &   Selke,   2005).     The   sizes   of   the   pallets  
the   ABC   model   to   address   the   problem   of   its   depend   on   the   type   of   product   and   the   industry.  
simplicity.   They   studied   a   model   for   EIQ-­‐ABC   Standard   Industrial   (1200   x   1000   mm2)   and  
analysis,   which   aimed   to   provide   a   scientific   basis   European   (1200   x   800   mm2)   pallets   are   used   in  the  
for  warehouse  management.   present   investigation.   Unit   loads   are   stacked   using  
The   warehouse   analyzed   in   the   present   paper   the  block  stacking  system,  in  which  loads  are  placed  
corresponds   to   a   finished   goods   warehouse,   which   on  the  floor  and  stacked  one  on  top  of  each  other  in  
keeps   finished   products   and   is   located   near   the   storage   lanes.   Height   depends   on   various   factors,  
facilities  of  the  factory.   such   as   the   weight   and   stability   of   the   loads,   the  
clear   height   of   the   building   and   acceptable   safe  
Due   to   the   many   limitations   of   the   warehouse   limits   (Robson   e   Copacino   1994).   In   the   present  
space   in   this   study,   and   the   specific   conditions   of   investigation,   loads   are   stacked   in   a   maximum   of  
this   particular   case,   general   models   for   optimizing   three   levels,   which   will   be   referred   as   T3   loads.  
layout  distributions  are  difficult  to  be  applied.     Smaller   pallets   may   be   stacked   in   four   (T4   loads),  
This  paper  focuses  on  two  main  subjects,  which   five  (T5  loads)  or  six  (T6  loads)  levels.  
are   layout   performance   and   putting   away   process.   As   loads   come   out   of   the   production   line,   they  
The   main   objective   is   to   optimize   the   internal   are   grouped   by   reference   and   stored   randomly   in  
 
 3  
 

any   open   slot.   Initially,   loads   are   placed   in   a   through  qualified   personnel.  Data   analysis  was  
warehouse   located   near   the   end   of   the   production   prepared  in  two  steps:  
line.   Some   items   are   later   moved   by   an   internal  
o The  first  stage   constituted  
truck   to   a   bigger   warehouse   inside   the   facilities,   a   a  characterization   of   the   products  in   the   factory  
few   meters   away.   The   drawback   of   these  
warehouse,  in  order  to  understand  its  behavior  and  
procedures   is   the   amount   of   internal   transactions  
elaborate   an   inventory   map.    This   analysis   done  
done   to   store   the   loads   and   the   cost   of   using  
using   the  concept   of  ABC   inventory   classification  
unnecessary   equipment.   These   procedures   in   the  
and  product  rotation.    
putting   away   process   were   also   object   of   the  
o A   second   stage   consisted   in   obtaining   and  
present  investigation,  since  the  process  contains  too   structuring   data   from   a   reference   month   through  
many   steps   to   be   accomplished,   reflecting   a   non-­‐
the  software  SAP.     This   information   in   combination  
optimized  system.    
with   the   current   configuration   of   the   warehouse   is  
Mobile   equipment   used   for   transporting   and   analyzed   through   Key   Performance   Indicators  
stacking   loads   in   the   warehouse   is   two-­‐pallet   created  by  author  in  the  process  of  investigation.  
forklifts.   Depending   on   the   height   of   the   load,   the  
The   third   step  included   the   creation  of  
forklift   can   transport   up   to   four   loads   at   a   time.   In   alternative   layout   models   using   the   AutoCAD  
other   factories   of   the   company,   it   is   used   three-­‐
software.  
pallet   forklifts,   which   is   an   initiative   that   will   be  
adopted   in   the   warehouse   of   the   current   case   study.   The  fourth  step   consisted   on   the   evaluation   of  
These  forklifts  are  able  to  transport  up  to  six  loads   the  layout  models  by  comparing  the  result  values    of  
depending  on  the  height  of  the  load,  minimizing  the   different  indicators  applied  to  the  reference  month.      
time   for   storing   the   same   amount   of   items.   The   fifth   step   consisted   in   selecting  the  
Warehouse  slots  are  double  pallet  lanes,  consistent   alternative   that   maximizes   the   productivity  of   the  
with   the   type   of   forklift   used   in   the   warehouse,   warehouse.   Other   proposals   for   operational  
having  a  width  of  2,2m  so  the  forklift  can  enter  deep   performance  improvement  were  also  elaborated.    
into   the   position   and   place   the   pallet   loads.   The  
alteration   of   the   forklift   type   also   means   alteration   4. RESULTS  AND  DISCUSSION  
of  the  layout,  which  must  be  modified  to  triple  pallet   4.1. S TOCK  CHARACTERIZATION  
lanes   with   a   width   of   3,3m   to   permit   the   entering   of   It   was   analyzed   the   monthly   stock   as   to  
the  forklift.   determine  quantities  and  behavior  of  the  inventory,  
3. METHODOLOGY   using  ABC  classification  using  two  different  criteria.  
The  first  was  the  Pareto  Principle,  which  is  based  on  
For   the   elaboration   of   this   paper,   a   series   of   the  20/80  rule.  The  second  classification  was  based  
steps  were  followed,  as  illustrated  in  Figure  1.   on   the   rotation   records   of   the   products   in   the  
system.      
Step  1   Problem  contextualiza1on    
4.1.1. S TOCK  Q UANTITY  M AP  
Step  2   Data  gathering  and  analysis  
Figure   2   presents   the   monthly   input   of   the  
Step  3   Layout  models  designing   warehouse.   The   data   used   was   a   sample  
correspondent   to   the   period   from   January   to  
Step  4   Layout  models  evalua1on   December   2010,   which   is   the   last   yearly   stock  
Step  5   Selec1on  of  the  best  alterna1ve   record  available  in  the  SAP  software.    
 
F IGURE   1:  Methodology  approach.    
70,000  
Monthly  stock  2010  
The  first  step  consisted  in  gathering  information  
Product  quan,ty  

65,000  
about  the  actual  situation  in  the  company.  This  was  
60,000  
accomplished   through   direct   observation   of   the  
facilities   and   non-­‐structured   interviews   with   the   55,000  
working  personnel.     50,000  
Abr/10  

Ago/10  
Set/10  
Mai/10  
Fev/10  
Mar/10  

Out/10  
Jun/10  

Dez/10  
Jul/10  

Nov/10  
Jan/10  

The   second   step  consisted   in   gathering   and  

analyzing  essential   data   to   characterize   the   Montlhy  stock   Average  
 
situation.   The  data   required   for  analysis   was  
obtained   through   the   software   used  by   BA.  The   data   F IGURE   2:  Monthly  stock  record  in  the  year  2010.    
that   was   not  available   in   the   system  was   obtained   The  monthly  quantity  of  stock  in  2010  does  not  
show   large   variations.   The   graphic   shows   that  

 
 Warehouse  logistics  and  internal  distribution  optimization   4  
 

almost  all  values  appear  to  be  close  to  the  average,   The   analysis   did   not   entirely   confirm   the  
which   value   is   61.880   products,   with   a   standard   previously  stated  hypothesis,  for  the  80/20  rule  was  
deviation   of   3,6%.   The   graphic   shows   a   slowdown   not   completely   satisfied;   though   the   results   were  
in   June   2010,   which   is   recovered   rapidly   stating   in   close,  for  in  average  25%  of  the  SKUs  holds  80%  of  
July  2010.  The  possible  causes  for  this  event  may  be   the   quantity.   The   study   also   showed   that   the  
attributed   to   seasonal   demand   or   internal   monthly   behavior   of   the   stock   is   similar   for   every  
production   changes.   Further   acknowledgements   month.  
corroborated  that  production  capacity  had  changed  
4.1.2.2. R OTATION  A BC  A NALYSIS  
in  July  2010,  since  a  second  hoven  was  installed  and  
production   capacity   increased.   This   fact   also   A   second   analysis   was   elaborated   in   order   to  
indicated   the   need   for   a   second   stock   map   analysis   classify   the   inventory   by   SKU   rotation,   using   as  
using   different   period,   this   time   from   July   2010   to   reference   the   average   rotation   of   the   company,  
March  2011  (See  Figure  3).       which   is   70   days,   and   according   to   the   conditions  
presented  in  Figure  4.    
75,000  
Stock  since  July  2010  
Product  quan,ty  

70,000   A • Products  with  rota1on  of  70  days  or  less    

65,000  
60,000   B • Products  with  rota1on  between  71  and  210  days  
55,000  
50,000   • Products  with  rota1on  of  210  days  or  more  
C
Ago/10  

Set/10  

Fev/11  

Mar/11  
Out/10  

Dez/10  
Jul/10  

• Products  with  infinite  rota1on  

Nov/10  

Jan/11  

 
Stock  since  July  2010  
Linear  (Stock  since  July  2010)   F IGURE   4:  Classification  of  stock  in  ABC  by  rotation  criteria.    
 
F IGURE   3 :  Monthly  stock  record  from  July  2010  to  March  2011.   The   aim   was   to   determine   how   many   SKUs  
scored   under   the   company   average   of   maximum  
Figure   3   illustrates   that   stock   has   a   linear   days  in  stock,  and  how  does  this  factor  change  over  
increasing  trend  as  from  July  2010  to  the  date  of  the   time.   The   results   of   the   analysis   are   showed   in  
present   study.   The   data   for   further   analyses,   the   Figure  5.  
period   of   evaluation   will   comprehend   the   months  
between  July  2010  and  March  2011.  
4.1.2. P RODUCT  CHARACTERIZATION  
A   classification   of   SKUs   in   ABC   was   elaborated  
using   diverse   criteria,   as   will   be   showed   later   on.  
The   data   utilized   for   the   analyses   represents   the  
products   in   stock   with   physical   existence   in   the  
warehouse.   SKUs   that   had   no   physical   existences  
were  not  considered.    
The   first   approach   in   the   analyses   employs   the  
Pareto   principle   to   analyze   the   inventory   behavior,  
using  as  input  the  number  of  SKUs  and  the  monthly  
quantity   of   products   stored   in   the   warehouse.   The  
second   approach   divides   the   stock   by   level   of  
activity,  applying  rotation  information  of  each  SKU.  
4.1.2.1.  Q UANTITY  A BC  A NALYSIS    
F IGURE   5:   Graphic   and   chart   of   the   percentage   of   SKUs   by   ABC  
The   ABC   analysis   is   based   on   the   Pareto   stock  classification  using  rotation  criteria.  
principle,  which  is  grounded  on  the  80/20  rule.  The  
hypothesis   that   is   sought   to   confirm   with   this   The   results   show   that,   on   average,   class   A   of  
approach   is   that   20%   of   the   SKUs   hold   80%   of   the   SKUs  correspond  to  19%  of  the  total  amount,  being  
quantity   of   products.   Table   1   presents   the   average   a   good   approximation   of   the   20/80   rule.   The   results  
results  of  the  analysis  for  the  period  of  evaluation.   also   confirmed   greater   variations   over   time,   which  
can   be   consequence   of   the   seasonal   product  
  A   B  e  C   demand.        
    %  SKU   %  Quantity   %  SKU   %  Quantity  
Average   25%   80%   75%   20%    
T ABLE   1:   Chart   exposing   the   average   percentages   of   SKUs   and    
quantity  by  ABC  stock  classification  using  quantity  criteria.      
 
 5  
 

4.2. W AREHOUSE  M ANAGEMENT  O PTIMIZATION   4.2.1. L AYOUT  O PTIMIZATION  

In   the   following   section   is   presented   a   series   of   Layout   models   are   based   on   triple   pallet   lanes  
proposals  for  warehouse  optimization.  A  first  phase   and   are   adapted   to   the   warehouse   infrastructure.  
consists   on   the   designing   and   analysis   of   layout   The   models   were   evaluated   using   a   set   of   KPIs  
models   using   KPIs   to   determine   the   best   alternative   defined  by  author  and  presented  on  Figure  6,  using  
that   is   expected   to   minimize   time   spent   in   the   the   quantity   of   loads   that   were   stored   on   March  
putting   away   process.   A   second   phase   corresponds   2010  as  sample.    
to  the  zone  assignment  on  the  warehouse  for  class-­‐
based  storage.  
  Name,  description  and  nomenclature     Formula  and  unit  
NV:  Number  of  travels  for  storing  the  loads  in  each  block.  (The  lower  the  better)  
!!!!"  is  the  quantity  of  T3  loads  stored  in  lane  !  of  block  !.  
!!!!!!  !"  is  the  quantity  of  T4,  T5  and  T6  loads  stored  in  lane  no.  !  of  block  no.  !.   ! !
!  and  !  are   constant   number,   and   depend   on   the   type   of   forklift   used.   For   double   pallet   forklifts,  !  equals   2   and   !!!!" !!!!!!  !"
!"!"   =   +    
!  equals  4.  For  triple  pallet  forklifts,  !  equals  3and  !  equals  6.   ! !
!!! !!!
 !  is  the  total  of  lanes.  
!  is  the  total  of  block.  
The  total  number  of  travels  (!"!"# )  is  the  sum  of  all  !"!" .  
Operational  KPI  Group  1  

DP:  Total  traveled  distance  for  storing  the  loads  in  the  storage  lanes.    (The  lower  the  better)     !
!!  is  two  times  the  distance  from  the  put-­‐away  zone  to  te  middle  point  of  each  block.  This  number  includes  
!"! =   !! ×!"!  
both  ways  travel.    
!!!
!"!  is  the  number  of  travels  to  each  block.  
(m)  
The  total  traveled  distance  !"!"#  is  the  sum  of  all  distances  to  each  block  (!"! ).  
T:  Total  time  for  storing  the  total  amount  of  loads  in  the  storage  positions.  For  it  estimation,  it  was   !"!"#
!"# =    
needed  to  calculate  the  speed  (!"#)  in  which  forklifts  move,  also  taking  in  account  the  time  spent  in   !"!"# ×1000
removing  of  the  production  line  and  placing  the  loads  in  the  position.  (The  lower  the  better)     (Km/h)  
!"!"#  total  hours  of  work  in  March  2011.      
!!  unitary  time  spent  by  the  forklift  to  place  the  loads  in  each  block.     !"!
!! =  
The  total  time  (!!"# )  is  the  sum  of  all  unitary  times  !! .   !"#
(h)  
CC:  Value  in  euros  of  the  amount  of  fuel  used  by  forklifts  to  store  the  pallets.  (The  lower  the  better)   !
!!  is  the  consumption  rate  of  forklifts.  It  has  a  value  of  2,83Kg/h  for  double  pallet  forklifts  and  3,9Kg/h  for  
!! =   !! ×!!×!"  
triple  pallet  forklifts.    
!!!
!"  is  the  cost  of  fuel  and  equals  1,08  €/kg.  
(€)  

PpV:  Average  quantity  of  loads  stored  for  each  forklift  trip.  (The  higher  the  better)   !!"#
!!"#  is  total  quantity  of  loads  in  March  2011.     !"# =    
!"!"#
!"!"#  is  the  total  number  of  trips  for  storing  the  loads.  
(loads  stored  per  trip)  
Operational  KPI  Group  2  

DV:   Average   distance   traveled   by   the   forklifts   in   each   trip   to   store   the   loads.   (The   higher   the   !"!"#
!" =  
better)   !"!"#
!"!"#  is  the  total  distance  traveled  by  the  forklifts  to  store  the  loads.     (m  per  trip)  
VpH:  Average  number  of  trips  that  the  forklift  must  do  to  store  the  loads.  (The  higher  the  better)   !"!"#
!"# =    
!!"#  is  the  total  work  time.   !!"#
(trip  per  h)  
CA:   Quantity   of   loads   that   can   be   stored   per   day   in   the   warehouse   taking   in   account   the   layout  
disposition  and  the  type  of  equipment.  (The  higher  the  better)   !" = !"#×!"#×  20  
For  this  indicator,  it  was  supposed  that  the  total  work  hours  per  day  per  worker  are  20.  A  work  day  divides  in   (loads  stored  per  day)  
three   work   turns,   approximately   of   6   hours   and   40   minutes   each.   It   is   discounted   1   hour   for   lunch   and  
approximately  20  minutes  to  count  fatigue.      
CpQ:  Value  in  euros  of  the  total  amount  of  consumed  fuel  per  kilometer  by  the  forklifts.  (The  lower   !!×1000
!"# =  
the  better)   !"!"#
(€/Km)  
ABU:  Total  base  area  available  to  store  the  loads  per  block.  (The  higher  the  better)  
!!  is  the  length  of  the  lane,  which  is  also  the  length  of  the  block.    
!!  is   the   width   of   each   storage   lane.   This   value   equals   2,2m   for   double   pallet   lanes,   and   3,3m   for   triple   pallet   !"#! = !! ×!! ×!". !"#$%!  
lanes.     2
(m )  
!". !"#$%!  corresponds  to  the  number  of  storage  lanes  per  block.      
The  total  base  area  in  the  warehouse  !"#!"#  is  the  sum  of  all  the  base  areas  for  blocks  (!"#! ).  
Area  KPI    

PB:   Number   of   loads   that   can   be   stored   in   the   base   level   of   the   storage   lanes.   (The   higher   the  
better)   !"! =   !". !"#!"! ×!"#!"  
!". !"#$%!  is  the  number  of  storage  lanes  in  each  block.    
(loads)  
!"#!"  is  the  quantity  of  pallets  that  can  be  stores  in  the  base  level  of  the  storage  lanes.    
The  total  base  loads  !"!"#  is  the  sum  of  the  base  pallets  stored  in  each  block  !"! .    
PP:  Percentage  of  storage  useless  space.  (The  lower  the  better)   !!"! − !"!"# ×1,2!!
×100   !! =  
The  number  1,2  represents  the  total  base  area  occupied  by  one  load.   ! !"#
!
PPE:  Percentage  of  storage  useless  space,  considering  corridor  area  as  useful  space.  (The  lower  the   ! !"! − !"!"# ×1,2! − !!"##
!!" =  
better)     ! !"#
!!"##  is  the  occupied  by  the  corridors.     ×100  
F IGURE   6:  Table  of  KPI  .  Operational  KPI  and  Area  KPI  
 
 Warehouse  logistics  and  internal  distribution  optimization   6  
 

Operational   KPIs   were   divided   in   two   groups    Triple  pallet  lane  model  No.  3  
based  on  the  procedures  used  to  calculate  them.  The  
The   last   model   results   from   the  
first   group   includes   those   that   are   calculated   combination  of  the  first  two,  plus  some  
directly   based   on   the   data   obtained   for   the   sample   modifications.   Storage   lanes   are  
disposed   both   ways,   vertically   and  
month.   The   second   group   corresponds   to   KPIs   that   horizontally,  to  fit  the  space  limitations  

Vertical  corridor  
Vertical  corridor  
are   calculated   indirectly,   using   as   basis   previously   as   best   as   possible   and   minimizing  
calculated  values.   travel   distances   at   the   same   time.   For  
this   matter,   the   put-­‐away   zone  
The   initial   conditions   of   the   warehouse   are   connects   directly   to   both   vertical  
parallel   corridors   through   a   cross  
presented  on  Figure  7.   corridor.   Vertically   disposed   lanes   in  
Put-­‐   Crossed  corridor   common   with   model   No.   2   function  
away   with   the   FIFO   method,   while   the   rest  
zone   uses  LIFO  method.  
Double  pallet  lane  layout    
The   actual   layout   consists   of   F IGURE   8:  Triple  pallet  lane  models  display  and  description.    
double   pallet   lanes   distributed   all  
Central  corridor  

over  the  warehouse,  fit  between  the   Each   model   was   evaluated   using   a   set   of   KPIs  
structure   columns   and   walls   and   defined   previously.   The   results   were   compared  
adapted   to   other   initial   conditions  
such   as   the   end   of   the   production   between   each   other   and   with   the   results   of   the  
line  in  the  put-­‐away  zone.   initial  conditions.  
  The  improvement  percentage  is  showed  aside  of  
Put-­‐     each   estimated   value   in   gray   to   have   a   better  
away  
zone   perspective  of  the  variations  in  Tables  2,  3,  4  and  5.  
 
F IGURE   7:  Initial  layout  conditions  –  double  pallet  lanes.     Layout   NV   DP   T   CC  
      (m)     (h)     (€)    
Based   on  the   initial   conditions  previously,  three   Double   7.263     1.080.523,40     490,54     1.499,29    
Triple  No.  1   4.842   33%   720.394,70   33%   327,05   33%   1.377,53   8%  
triple   lane   layout   models   were   developed,   which   Triple  No.  2   4.842   33%   674.088,63   38%   306,03   38%   1.288,98   14%  
are  shown  and   explained   in   Figure   8,   Triple  No.  3   4.842   33%   661.928,48   39%   300,51   39%   1.265,73   16%  
highlighting  their  advantages  and  disadvantages.   T ABLE   2:  Overall  results  for  operational  KPI  Group  1.    
NV   value   shows   independent   from   the   layout  
 Triple  pallet  lane  model  No.  1   configuration,  for  it  only  changes  as  the  forklift  type  
The   first   model   is   based   on   the   changes.   All   three   triple   pallet   lane   models   have   an  
double  pallet  layout  distribution,  fitting   improvement   of   33%.   DP,   T   and   CC   values   have  
the   lanes   between   the   columns   and  
maintaining   the   same   corridor  
different   behavior,   for   they   depend   on   the   forklift  
Central  corridor  

configuration.   Due   to   the   structure   type   as   well   as   on   the   layout   configuration.   For   all  
limitations,   this   configuration  
maximizes   the   use   of   space   between  
three,  the  model  with  best  performance  was  No.  3.  
columns.   The   disadvantage   is   that   Layout   PpV   DV   VpH   CA   CpQ  
there   is   no   direct   access   from   the   put-­‐
away   zone   to   the   central   corridor,  
          (m)           (pal/dia)     (€/Km)    
which   is   also   a   problem   in   the   actual   Double   2,83     148,77     14,81     838,05     1,39    
Put-­‐   layout   distribution.   All   storage   lanes   Triple  No.  1   4,25   33%   148,78   0%   14,81   0%   1.257,00   33%   1,91   -­‐38%  
away  
function  with  the  LIFO  method.     Triple  No.  2   4,25   33%   139,22   6%   15,82   6%   1.343,35   38%   1,91   -­‐38%  
zone   Triple  No.  3   4,25   33%   136,71   8%   16,11   8%   1.368,03   39%   1,91   -­‐38%  
 
T ABLE   3:  Overall  results  for  operational  KPI  Group  2.  
 Triple  pallet  lane  model  No.  2   PpV   value   shows   independent   from   the   layout  
This   model   aims   to   reduce   the   travel   configuration,  for  it  only  changes  as  the  forklift  type  
distance   to   place   pallets   in   the   storage  
lanes.   For   this   reason,   lines   are   changes.   All   three   triple   pallet   lane   models   have   an  
oriented   to   the   corridors.   It   is   improvement   of   33%.   DV,   VpH   and   CA   values  
Vertical  corridor  

Vertical  corridor  

characterized  by   two   vertical   parallel  

corridors   and   a   crossed   corridor  
depend  on  the  forklift  type  and  layout  configuration.  
connecting   the   first   two   corridors   For   all   of   the,   model   No.   3   resulted   with   a   higher  
between  each   other   and   to   the   put-­‐ improvement   percentage.   On   the   contrary,   CpQ  
away   zone.   The   disadvantage   of   this  
model   is   that   does   not   take   maximum   value   showed   a   declining,   for   triple   pallet   forklifts  
Crossed  corridor  
advantage   of   storage   space   between   consume  more  fuel  that  double  pallet  forklifts.    
Put-­‐   columns.   Vertically   disposed   lanes  
away   function   with   the   FIFO   method,   while   Layout   ABU   PB   PP   PPE  
zone   the  rest  uses  LIFO  method.   2
    (m )     (pal)                
  Double   6.564,47     4.858,00     36%     7%    
Triple  No.  1   6,393.09   -­‐3%   4,731.00   -­‐3%   38%   -­‐2%   9%   -­‐2%  
Triple  No.  2   6.078,20   -­‐8%   4.590,00   -­‐6%   40%   -­‐4%   18%   -­‐11%  
Triple  No.  3   6.865,78   4%   5.124,00   5%   33%   3%   5%   2%  
T ABLE   4:  Overall  results  for  area  KPI.  

 
 7  
 

All   Area   KPI   depend   only   in   the   layout   4.2.2. O PERATIONAL  M ANAGEMENT  IMPROVEMENT  
configuration.   For   these,   the   only   model   that  
Proposals   for   operational   management  
presented   improvement   in   every   category   was  
optimization   consisted   on   an   automatic   ABC  
model  No.  3,  as  showed  on  Table  4.     classification   based   on   the   rotation   of   the   SKU,  
Operational   Operational   Area  
Average   specifically   founded   on   the   number   of   days   that  
  KPI  Group  1   KPI  Group  2   KPI   loads  will  remain  stored  when  they  are  produced  for  
Triple  No.  1   27%   6%   10%   14%  
Triple  No.  2   31%   9%   11%   17%   order   in   batches.   The   diagram   is   showed   on   Figure  
Triple  No.  3   32%   10%   12%   18%   9.  The  aim  of  this  procedure  is  to  separate  the  stock  
T ABLE   5:  Overall  percentage  results  for  KPI.   depending   on   the   time   loads   will   stay   in   storage,  
In   general,   the   best   result   corresponded   to   the   using   more   accurate   criteria.     The   system   classifies  
triple   pallet   lane   model   No.   3,   with   an   average   the  loads  according  to  the  following  scheme:  
improvement   of   18%.   The   results   in   Table   5   o A1:  storage  time  less  than  30  days.  
correspond   to   the   average   percentage   of   o A2:  storage  time  between  31  and  70  days.    
improvement  in  the  different  indicators.     o B1:  storage  time  between  71  and  140  days.  
  o B2:  storage  time  between  141  and  210  days.  
o C:  storage  time  more  than  210  days.    
 
  Start

Finished  goods  come  out  

from  the  production  line

Loads  pass  through  a  

automatic  barcode  reader  

SKU  registration  
enters  the  system

Does  the  SKU  have  a   NO

delivery  date?

YES

SKU  was  produced  to   SKU  was  produced  to  

order stock

Known  delivery  date Unknown  delivery  date

Go  to  rotation  
registers

Classify  the  product  

according  to  ABC  
analysis  

A1:  storage  time  less  than  30  days  

A2:  storage  time  between  31  and  70  days  
B1:  storage  time  between    71  and  140  days
B2:  storage  time  between  141  and  210  days Legenda:
C:  storage  time  more  than  210  days  
Load  situation  

Additional  information
Store  the  loads  in  
Process  executed  by  system
the  apropiate  zone
Process  executed  by  operator

End Question
 
F IGURE   9:  Diagram  of  automatic  ABC  load  classification  according  to  SKU  rotation.    

 
 Warehouse  logistics  and  internal  distribution  optimization   8  
 

The   classification   in   smaller   sections   allows   advantages   of   each   one   and   putting   them   together.  
having   more   specific   zones   for   products   with   The  optimization  permitted  to  do  more  work  in  less  
different   rotation,   thus   optimizing   internal   time,   which   means   that   in   the   same   period,   more  
functions.   The   system   is   robust   and   works   in   real-­‐ loads  can  be  stored.  This  permits  the  direct  storage  
time,  for  the  classification  of  loads  is  done  just  in  the   of   loads   in   the   bigger   warehouse,   eliminating   the  
moment  the  come  out  of  the  production  line.     need   of   the   truck   to   transport   loads   internally;  
For   this   system   to   work,   it   is   required   that   the   consequently   reducing   the   amount   of   internal  
transactions  and  optimizing  warehouse  activities.  
warehouse   layout   is   divided   by   activity   level,  
according  to  the  previous  ABC  classification.  For  the   ABC   stock   classification   by   level   of   activity  
zone   distribution,   both   warehouses   were   allowed   to   elaborate   a   division   if   the   warehouse   in  
considered,   the   one   near   the   end   of   the   production   zones  to   store  the   SKUs  depending  on   their   rotation.  
line  as  well  as  the  furthermost,  which  is  also  bigger,   This   system   will   allow   more   organization   in   the  
as   showed   in   Figure   10.   This   diagram   shows   warehouse,  thus,  incrementing  its  performance.  
approximate   areas   for   each   division,   according   to  
previous  studies  of  stock.     6. REFERENCES  
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 9  
 

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