BUSINESS LOGISTICS SYSTEMS ANALYSIS

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BUSINESS LOGISTICS SYSTEMS ANALYSIS
Lecture 30STORAGE DESIGN
H. E. METZNER, Ph.D. Department of Engineering
Management University of Missouri-Rolla

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SIGHT SELECTION FACTORS BY INDUSTRY TYPE
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PLANNING FOR DESIGN AND OPERATION

• Sizing the Facility
• Facility Configuration
• Space Layout
• Dock Design

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SIZING THE FACILITY

• The no-trend sizing problem
• Sizing with trend
• Appraisal of the sizing method

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FACILITY CONFIGURATION

• Ceiling height
• Length versus width

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Figure 12-4 Arial View of Two Possible Layouts
of Shelving in a Rectangular Warehouse
Configuration

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DOCK DESIGN

• Rail dock
• Truck dock

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Figure 12-1 A Mixed Strategy of Rented and
Privately Operated Warehouse Space for Variable
Space Requirements
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Figure 12-4 Arial View of Two Possible Layouts
of Shelving in a Rectangular Warehouse
Configuration
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Net Present Value
Decision Making Tool - Rent versus Lease versus
Own
Where net present value at time 0
initial investment, or cash outlay, at time 0
time period in the planning horizon
between 0 and n the time period at the
end of the planning horizon the cash
flow difference (cash outflow) between
alternatives in time period j the
discount rate, or hurdle rate, that such
investments are expected to return annually
the cash return, or salvage value, of the
asset at time period n
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Optimum Configuration Design - Length versus Width
For the dock located at X

(Figure 12-3)
Where optimum width optimum
length the sum of the total cost per foot
to move an item of a given type in and out of
storage multiplied by the expected number of
items of a given type in and out of storage per
year (dollars/ft.) annual perimeter cost
per foot (dollars/ft.) required floor
area of the warehouse (sq.ft.)
For the dock centered at Y
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Rail Dock Length Needed for Efficient Product Flow
Where L length of rail needed (ft.) D daily
demand for all orders (cwt./day) S length of
the average rail car used (ft.) Q average
product weight placed in each car (cwt./car) N
number of car changes per day (number/day)
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Number of Truck Docks Needed for Efficient
Product Flow
Where N total number of truck dock doors D
average dock throughput per day H time required
to load/unload trucks C truck capacity S time
per day available to load/unload trucks
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BUSINESS LOGISTICS SYSTEMS ANALYSIS
Lecture 32STORAGE DESIGN
Assignment Q4

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Business Systems Logistics Analysis
Inventory Strategy
Transport Strategy

• Forecasting
• Storage fundamentals
• Inventory decisions
• Purchasing and supply
• scheduling decisions
• Storage decisions

• Transport fundamentals
• Transport decisions

Customer Service Goals

• The product
• Logistics service
• Information systems

Location Strategy

• Location decisions
• The network planning process

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