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sry, Febuty 25,2098 Homework 2 Teviding La0nd gods bo Southurstern Vievinia A grove of VT classmates have decided to establish a distribuhon center to replenish dhe Supermarels of the area with a varity of carmd goods, The gem layout of the te is preanted in Figore 1 r a Th jompany receives canned products from Moe manufacturers once @ week, and stores trem in Une Reserve Avea. Frouee 4, layoot of the dictribuks Curler Tre gorery stores of the area submit ther erdevs wl hy end of Lhe dou (via'eD2) BMF they are A 4iNled the need doy fom tne Distribution ceuler. Figur 2 Proents a bypical order From one of the Supermar lets. rsernumoer sx Glou night notice that in facia Esch 2 Unis fictional example 4 Figure 2: Typical doily order pele consume a big ae amovnl of canned food) Class-Prep Page 1 Tha Microsoft Excel file ( Homework-21s) conleins the fobel of orders for ne dow. Jour dishibubion company prepares and ships orders twice aday (two waves), Jou can. tssume hat thre one-douy order prfile in the, spradshect jis typical of every day (Supermarkets order and receive } douys @ urel), Now, some information about the froducts, The cans are all the same slanderd size (i5 o2.), The can Dameer: 3° The arrangement Height 74%" +12 cans per case +2 ers The case ++ 0:1" clearance tol + Sveleion separator of Yg ov im bre sides and cardboard OID + Cardlooard Ye" Prick SOS + Tier separator Ye” thick Wink Use all this information T~ fo alaulak theesternal C15 points) dimensions of tne case. The pallet : Based on the case information, find out how man ° cases You Can put if epdets 42" 49g" pole, stacked 3 high. (10 points) Class-Prep Page 2 Ferurrd Area: We hare two pods of hwo horizontal qarculs cach. Each pod opening can store one cax of cans, which can be split (opened) if necessary for fulfillment of orders. As it wos jrantioned before, thert an two picking’ waver per day. We beep an exhe 10% stock for safety, Fred out how many openings per_carousel are required. (25 points) Puerve ard: The yeserve arta uses yacks bo store the weekly dewand for all items, plus 20% exhe for safety stock. bach opening stores one pallet, and then the reserve pickers replenish te forward area as required. Find out how many ferent area Openings are neeckd, design the stomoe racks and aisles (si (25 qoints) Ann slider and handouts) and calculate te dobeal ford volume fo be stored in reserve. Class-Prep Page 3 Costing inrorraTion Based on the number of forward locations (25 zoinks) (and using the “Buks of thumb’ handout) Caleslale the cost of the horizontal carousels . + Also, select the tupe of Reserve pallet vacks that will be vseh and caugloy Lhe “Boles of thumb” to cost them. + Finally leased on your denign of the feserve pallet racks, choose % type of industrial truck compatible with the racks, Assume pu need 4 units of ib and figure out Apeir botal cost. + ESTIMATED conPuTion Tine: 2 be 4 hours 4. TOOLS Peguined : Excel Cor any spreadsheet softwar) ~ Handouts and slides from the class. t. WOPERATION Pouicy: Lt's acceptable to discuss general methodologies and problew breakment. Once you sit ho crunch che numbers , it needs te be individoal work. Class-Prep Page 4 SOME CLARIFICATIONS TO HOMEWORK NUMBER 2 We have received some questions related to Homework #2, and we think that some points deserve to be specified to make the assignment clearer: ‘* Calculations of the dimensions of the case: There is no clearance between a can and the internal separators (skeleton and tier separator). Clearances are only between the external cardboard case and the cans. * Safety Stock Calculations: When calculating the number of openings for the Forward area, you need to consider 10% safety stock. However, this extra 10% should not be taken into account for the calculations of the Reserve Area. The 20% safety stock for Reserve should be calculated only with the basis of the Demand for Reserve, not taking into account the 10% safety in Forward storage. * Case orientation: When deciding how many cases can fit on a pallet, the cases must lie flat on their bottoms. Cases should not be stored sideways. The cans should always be in an upright position. © Do not mix SKUs: It is unacceptable to have more than one SKU in a case or more than one SKU on a pallet. Therefore, the calculations of cases and pallets must be performed per SKU and rounded up to the next integer. «Safety Stock: You can apply the 10% safety stock to the raw demand in cases for each item or to the number of cases of the item. Same thing goes for pallets: The safety stock (20%) can be applied to cases or pallets. Please specify which one you chose, * Total Load Volume: For the Reserve Area, this calculation can be performed considering cases or full pallets. Please specify which one you used. © Truck capacity: When choosing the truck, please make sure that it has enough weight capacity to cary at least a full pallet of product. You have enough information to calculate how much a pallet weighs. Horizontal Carousels: Figure 1 presents a picture of a Horizontal Carousel, highlighting what we call a carrier. You need this to use the Rules of Thumb Guide. Please assume that each carousel contains at most 40 carriers and each carrier has exactly 6 positions for cases.