31183-Sujit Pawar-Warehouse Layout Modification

.
Warehouse Layout
Optimisation
Dissertation Report
Sujit N.Pawar
31183
Symbiosis Institute of Business Management, Pune

HINDUSTAN COCA-COLA BEVERAGES PVT.LTD. Dissertation Report
Table of Contents
Executive Summary................................................................................................................................. 2
1. Introduction....................................................................................................................................... 3
 Warehouse Operations In HCCBPL ............................................................................................ 3
 Structure Of A Typical Warehouse ............................................................................................ 3
 Activities Carried Out At A Warehouse .....................................................................................4
 Warehouse Productivity ............................................................................................................5
2. Warehouse Layout Optimisation...................................................................................................... 6
 Need............................................................................................................................................6
 Current issues in the storage of goods ......................................................................................6
 Consequences............................................................................................................................. 6
3. Methodology ..................................................................................................................................... 8
4. Alternate Layout Proposals.............................................................................................................11
 Proposal A.................................................................................................................................11
 Proposal B.................................................................................................................................12
 Comparison of the two layouts ...............................................................................................13
 Implications ..............................................................................................................................13
5. Recommendations ..........................................................................................................................14
6. Conclusions......................................................................................................................................15
7. Annexures........................................................................................................................................16
Sujit N.Pawar |SIBM |2008-2010 1

Executive Summary
Hindustan Coca Cola Beverages Pvt. Ltd. (HCCBPL) is the bottling arm of The Coca
Cola Company in India and is involved in the manufacture and distribution of its beverages
in India. The company buys the respective concentrates from Coca Cola India, manufactures
the various beverages in its factories across India and ensures availability at various outlets.
The distribution activity is the most important of all and a significant contributor to
the cost of the final product. For the distribution purpose, the company has its own
warehouses managed by franchisees across the country. The warehouses are responsible
for receiving the stock coming from the factory, storing it for some duration of time and
dispatching it to the customer. They are also responsible for performing break-bulk or cross-
docking operations if required. Thus a warehouse is an important component of the Supply
Chain network called Route-To-Market in HCCBPL.
Hence the warehouse productivity becomes important parameter of the

effectiveness of overall operations. An optimum warehouse layout is a very important factor
affecting warehouse productivity and is responsible for efficient operation. The project aims
to capture and organize the data in the most effective manner and optimizing warehouse
layout as to enhance the warehouse productivity.

1. Introduction
Since the project is about warehouse, an understanding of typical warehouse

operations becomes essential.
 Warehouse Operations In HCCBPL
The country is divided into the following regions for distribution purposes:
1. North
2. Central
3. South
These regions are further divided into various units under which come the factories
and the warehouses. The warehouse is a hub of activity, especially during the peak season
with the various distribution managers, Areas Sales Managers and Regional Managers
performing their duties.
The factory dispatches the stock as per the forecast to the various warehouses under
its purview. The warehouse stock this till it is sent to the market. The various customers for
a warehouse are the small retailers, key accounts, distributors, etc. The warehouse has its
own fleet of vehicles for servicing the customers.
 Structure Of A Typical Warehouse
The warehouse operations are outsourced to a Carrying and Forwarding Agent (C &
FA) who is responsible for carrying out the various activities in the warehouse. The C & FA is
bound by a formal agreement between him and HCCBPL. C & FA provides the manpower
required for running the operations including casual labourers and the office staff. He is
responsible in Toto for them and is in-charge of supervising their activities, monitoring their
attendance, paying salaries and other such typical functions.
The RTM team also has an office at the warehouse. These are HCCBPL employees
and are responsible for the overall smooth functioning of the warehouse. They include a
Distribution Manager who is also the warehouse head and other people handling the
various types of accounts like Pre-Sell and DSD.

 Activities Carried Out At A Warehouse
The activities carried out at a warehouse can be broadly classified into the following
five heads:
1. Loading/Unloading: This includes:
a. Unloading of fresh stock from factory vehicles

b. Loading of route vehicles for delivery
c. Unloading empties and unsold cases from Route Vehicles
d. Loading empties into the company factory for dispatch back to the factory
e. Sorting of empties and palletisation according to the SKUs
2. Order Processing: Includes:
a. Collecting orders from Presell / Tel-Sell and key accounts executives and
preparing the order sheet for the day
b. Preparing load sheets for the Presell and key accounts
c. Handing over the collated orders to the shipping department
d. Preparing load sheets for the Ready Van Sales according to the orders of the
salesmen
e. Preparing pick sheets for Ready van Sales, Presell and key accounts Sales
f. Invoice processing of incoming and outgoing vehicles
3. Order Dispatch/Delivery: Includes the complete cycle of vehicles leaving with their
load and returning with the empties and/or unsold goods
4. Cash Processing: Includes the collection of cash from salesmen, accounting and
depositing the cash
5. Others: Miscellaneous activities like housekeeping, office peons, security,

maintenance etc.

 Warehouse Productivity
The warehouse productivity is measured in terms of the following metrics:
1. Manpower Productivity: it is defined as the number of cases sold per manday and
the benchmark value is 60
2. Space Productivity: it is the number of cases sold per square feet and the number of
days in the period considered. The benchmark is .25
3. Vehicle Productivity: it is the number of cases sold per the available vehicle capacity
and is expressed as a percentage. The benchmark value is 120%.
Apart from these three, following two metrics are considered which impact the
safety of the warehouse. These are:
1. Total Incident Rate

2. Number of Fatalities
The warehouse productivity has a significant impact on the operating cost of the
company. And most of the parameters are dependent on the layout of the warehouse. An
efficient warehouse layout streamlines the operations, helps in easy movement of vehicles,
reduces turnaround time and makes it easier to keep track of the inventory. It also helps in
improving the safety of the personnel working in the warehouse.

2. Warehouse Layout Optimisation
HCCBPL has two warehouses catering to Delhi region-at Lawrence Road (LR) and
Dilshad Garden (DG). The entire Delhi region is covered between these two. The project was
based at Lawrence Road depot which is larger of the two.
 Need
The existing depot at LR has about 17,000 square feet of covered warehouse area
which is used to stock the various SKUs. It has five bays for loading and unloading of goods.
The loading of route vehicles usually takes place in the night shift and the vehicles leave on
their routes by 9 am. Some vehicles make multiple trips depending on the routes.
The depot receives stock from factories at Dasna (U.P.), Nazeebabad (H.P.), Pune
(Maharashtra) and Goa. Cross –docking and break-bulk operations take place and the stock
is dispatched as per the requirements.
 Current issues in the storage of goods
1. Lack of a dedicated area earmarked for various SKUs

2. No FIFO/FMFO
3. No ABC classification of SKUs for storage
4. No dedicated area for other miscellaneous items like empty pallets, cartons, scrap,
promotional material, etc.
5. Fluctuations in the stock receipt from the plants
 Consequences
1. High vehicle turnaround time
2. No streamlined flow of goods
3. High loading/unloading time
4. Safety hazards

This has a direct impact on the warehouse productivity. A better layout would not
only enable a streamlining of storage and handling but also help in increasing the
productivity by reducing the labour time and increasing the effectiveness. Hence, a need for
the project.

3. Methodology
The methodology followed was as follows:
1. Studying the operations at the company warehouse at Lawrence Road in Delhi
This involved studying the complete operations of the warehouse in all the shifts. It
included a stay in the depot during the night shift also as a bulk portion of the loading takes
place at night. A list of activities (already covered in introduction) taking place at a
warehouse was prepared which proved to be helpful in the Manpower Planning module
also. It helped in clearing the understanding about the activities at the depot.
2. Studying the existing layout at Lawrence Road depot
The LR depot does not have any layout as such. The incoming stock is placed
according to the need and the space available. However that does not mean it is completely
random. Slow moving SKUs like cans, for e.g., are placed at the back of the warehouse.
The situation becomes especially grim during the peak season as there is a mismatch
between demand and supply. Also, the stacking norms are not usually followed.
3. Preparing alternate layouts based on various SKUs, their sales and required inventory
levels
Peak month’s (May 09) sales were taken into account for calculating the space
requirements and design the warehouse layout to optimize the space for various SKUs.
The different SKUs were classified into 13 broad categories depending on their
volume, type (RGB or PET), brand, etc. the space requirement was then calculated based in
the inventory norms, percentage contribution to the sales, stacking height, and factors like
aisle factor and space utilization factor.
An ABC classification was done based on the sales of the various SKUs:

1. A Class: These constitute 70% of the sales and hence should be located closest to the
loading/unloading area
2. B Class: Constitute 10-20% of the sales and are placed between the A class and C class
items.
3. C Class: They constitute less than 10% of the total sales and are hence placed towards the
rear of the warehouse
A sample table of the classification is shown below:
Annexure 2 shows the complete table for all the SKUs.
The final floor pallet positions were then decided for each SKU coming under each of these
broad categories taking into account the following factors:
 Inventory Norms
o Supply Lead time
o Batch Size
 Stacking Height
 Movement Space
o Staging Area
o Aisles

 Calculations
Peak Month Inventory = Peak Month Sales X Inventory Norm (Days)

------------------------------------------------------------
No .of days in the month
Required Pallet Positions = Peak Month Inventory

-------------------------------
Utilization Factor
Floor Pallet Positions = Required Pallet Positions

-------------------------------------
Stacking Height
Sample layouts were then prepared in Microsoft Excel from the data generated from
the above activity.
Fig.: Calculations for warehouse space
The sample layouts were prepared based on the calculations. After various iterations
and discussions with the concerned people, two proposals were finalized and accepted.

4. Alternate Layout Proposals
 Proposal A

 Proposal B

 Comparison of the two layouts
As can be easily seen from the comparison, layout B results in a storage capacity
improvement of 11% over Layout A.
 Implications
1. Faster loading/unloading time due to storage based on ABC classification of SKUs

2. Improved productivity of casual labour and forklifts
3. Improved efficiency and effectiveness of operations
4. Streamlined flow of men, machine and material
5. Improved safety and hygiene
6. Storage as per norms
Hence due care should be taken while implementing the layout.

5. Recommendations
1. Layout Proposal B is recommended for implementation

i. Higher number of cases stored
ii. Use of covered area for storage only
2. Numbering the dock doors
3. Marking the aisles with paint
4. Damaged and BBD stock to be stored outside the covered warehouse area
5. Identification of stacks with overhanging square displays
6. One more entry/exit point would enable a smooth flow of route vehicles

6. Conclusions
The warehouse is a complex hub of multiple activities occurring simultaneously. It is

very difficult to manage, especially during the peak season. Also, it should be the first one to
target for optimization of a Supply Chain.
The layout if implemented would go a long way in streamlining the operations of the
LR depot. However, due care has to be taken as people are resistant to change, especially if
the current scenario is apparently working well. The C & FA would have to be taken into
confidence as he is the one who is ultimately the executor of the plan. It is suggested to
implement the layout step-by-step during the lean season.

7. Annexures
1. Calculation of space required for different SKUs
Area Reqd
Peak Peak Peak Utilis Floor
% Inventory Pallet Stacki (Sq. m)
Sr. Month(M Month Cases/ Month ation Pallet
SKU Contri Norm Positions ng (including
No. ay 09) Inventory Pallet Inventory Fact Positio
bution (Days) Reqd Height aisle
Sales (Cases) (Pallets) or ns
factor)
1 RGB 200 ml 12,852 4.01% 3 1428 63 23 80% 28 3 10 16.00
1.1 Limca RGB 200 ml 5,487 1.71% 3 610 63 10 80% 12 3 4 6.40
1.2 Coca-Cola RGB 200 ml 2,742 0.85% 3 305 63 5 80% 6 3 2 3.20
1.3 Thums Up RGB 200 ml 2,207 0.69% 3 245 63 4 80% 5 3 2 3.20
1.4 Sprite RGB 200 ml 1,273 0.40% 3 141 63 2 80% 3 3 1 1.60
1.5 Fanta Orange RGB 200 ml 1,143 0.36% 3 127 63 2 80% 3 3 1 1.60
1.6 Fanta Apple RGB 200 ml 0 0.00% 3 0 63 0 80% 0 3 0 0.00
2 RGB 300 ml 78,569 24.49% 2.5 7275 45 162 80% 202 3 68 108.80
2.1 Coca-Cola RGB 300 ml 26,794 8.35% 2.5 2481 45 55 80% 69 3 22 35.20
2.2 Limca RGB 300 ml 19,888 6.20% 2.5 1841 45 41 80% 51 3 17 27.20
2.3 Thums Up RGB 300 ml 17,441 5.44% 2.5 1615 45 36 80% 45 3 15 24.00
2.4 Fanta RGB 300 ml 7,372 2.30% 2.5 683 45 15 80% 19 3 7 11.20
2.5 Sprite RGB 300 ml 7,074 2.21% 2.5 655 45 15 80% 18 3 7 11.20
3 Juice RGB 19,023 5.93% 2.5 1761 45 39 80% 49 3 17 27.20
3.1 Maaza Juice RGB 19,023 5.93% 2.5 1761 45 39 80% 49 3 17 27.20
4 Juice PET 17,196 5.36% 2.5 1592 45 35 80% 44 1 44 70.40
4.1 Maaza-250 ml Juice PET 6,449 2.01% 2.5 597 45 13 80% 17 1 16 25.60
4.4 Maaza-600 ml Juice PET 4,440 1.38% 2.5 411 45 9 80% 11 1 12 19.20
4.5 Maaza 1.2 L Juice PET 3,415 1.06% 2.5 316 45 7 80% 9 1 8 12.80
4.3 Minute Maid-400 ml Juice PET 2,292 0.71% 2.5 212 45 5 80% 6 1 6 9.60
4.2 Minute Maid-250 ml Juice PET 569 0.18% 2.5 53 45 1 80% 1 1 1 1.60
4.6 Minute Maid 1L Juice PET 31 0.01% 2.5 3 45 0 80% 0 1 1 1.60
5 Small PET 96,479 30.08% 3 8459 45 188 80% 235 2 120 192.00
5.1 350 ml 3,257 1.02% 4 483 45 11 80% 13 2 9 14.40
5.1.1 Coca-Cola-350 ml PET 1,049 0.33% 4 155 45 3 80% 4 2 2 3.20
5.1.2 Limca-350 ml PET 724 0.23% 4 107 45 2 80% 3 2 1 1.60
5.1.4 Fanta O-350 ml PET 575 0.18% 4 85 45 2 80% 2 2 2 3.20
5.1.3 Sprite-350 ml PET 535 0.17% 4 79 45 2 80% 2 2 2 3.20
5.1.5 Fanta A-350 ml PET 269 0.08% 4 40 45 1 80% 1 2 1 1.60
5.1.6 Thums Up-350 ml PET 105 0.03% 4 16 45 0 80% 0 2 1 1.60
5.2 500 ml 14,756 4.60% 3 1640 45 36 80% 46 2 22 35.20
5.2.1 Coca-Cola-500 ml PET 6,007 1.87% 3 667 45 15 80% 19 2 9 14.40
5.2.2 Diet Coke-500 ml PET 3,102 0.97% 3 345 45 8 80% 10 2 4 6.40
5.2.3 Limca-500 ml PET 2,730 0.85% 3 303 45 7 80% 8 2 4 6.40
5.2.4 Fanta O-500 ml PET 1,513 0.47% 3 168 45 4 80% 5 2 2 3.20
5.2.6 Thums Up-500 ml PET 950 0.30% 3 106 45 2 80% 3 2 2 3.20
5.2.5 Sprite-500 ml PET 454 0.14% 3 50 45 1 80% 1 2 1 1.60
5.3 600 ml PET 78,466 24.46% 2.5 6337 45 141 80% 176 2 89 142.40
5.3.2 Limca-600 ml PET 30,189 9.41% 2 2236 45 50 80% 62 2 31 49.60
5.3.1 Coca-Cola-600 ml PET 19,952 6.22% 2 1478 45 33 80% 41 2 20 32.00

Area Reqd
Peak Peak Peak Utilis Floor
% Inventory Pallet Stacki (Sq. m)
Sr. Month(M Month Cases/ Month ation Pallet
SKU Contri Norm Positions ng (including
No. ay 09) Inventory Pallet Inventory Fact Positio
bution (Days) Reqd Height aisle
Sales (Cases) (Pallets) or ns
factor)
5.3.5 Sprite-600 ml PET 10,182 3.17% 2.5 943 45 21 80% 26 2 14 22.40
5.3.3 Fanta O-600 ml PET 9,214 2.87% 2.5 853 45 19 80% 24 2 11 17.60
5.3.6 Thums Up-600 ml PET 8,622 2.69% 2.5 798 45 18 80% 22 2 12 19.20
5.3.4 Fanta A-600 ml PET 307 0.10% 2.5 28 45 1 80% 1 2 1 1.60
6 Large PET 55,710 17.37% 3 4318 36 120 80% 150 2 75 120.00
6.3 Limca-1L PET 1,138 0.35% 3 126 36 4 80% 4 2 2 3.20
6.1 Coca-Cola-1L PET 749 0.23% 3 83 36 2 80% 3 2 2 3.20
6.2 Fanta-1L PET 545 0.17% 3 61 36 2 80% 2 2 2 3.20
6.5 Thums Up-1L PET 302 0.09% 3 34 36 1 80% 1 2 1 1.60
6.4 Sprite-1L PET 145 0.05% 3 16 36 0 80% 1 2 1 1.60
6.10 Coca-Cola-2L/2.25L PET 20,593 6.42% 2 1525 36 42 80% 53 2 26 41.60
6.8 Limca-2L/2.25L PET 17,609 5.49% 2 1304 36 36 80% 45 2 22 35.20
6.6 Thums Up-2L/2.25L 3,353 1.05% 2 248 36 7 80% 9 2 4 6.40
6.7 Sprite-2L/2.25L PET 2,940 0.92% 2 218 36 6 80% 8 2 3 4.80
6.9 Fanta-2L/2.25L PET 9,474 2.95% 2 702 36 19 80% 24 2 12 19.20
7 Schweppes 1,615 0.50% 3 179 45 4 80% 5 3 2 3.20
7.4 Schweppes Tonic Water 1,414 0.44% 3 157 45 3 80% 4 3 1 1.60
7.2 Schweppes Gingerale 144 0.04% 3 16 45 0 80% 0 3 1 1.60
7.1 Schweppes Bitter Lemon 21 0.01% 3 2 45 0 80% 0 3 0 0.00
7.3 Schweppes Soda 36 0.01% 3 4 45 0 80% 0 3 0 0.00
8 Soda RGB 3,460 1.08% 3 384 45 9 80% 11 3 4 6.40
8.1 Kinley Soda-RGB 3,460 1.08% 3 384 45 9 80% 11 3 4 6.40
9 Soda PET 700 0.22% 3 78 45 2 80% 2 2 2 3.20
9.1 Kinley Soda-600 ml PET 700 0.22% 3 78 45 2 80% 2 2 2 3.20
9.2 Kinley Soda-500 ml PET 0 0.00% 3 0 45 0 80% 0 2 0 0.00
10 Water PET 11,861 3.70% 2 879 45 20 80% 24 1 24 38.40
10.1 Bonaqua-1L PET 11,154 3.48% 2 826 45 18 80% 23 1 22 35.20
10.2 Bonaqua-500 ml PET 707 0.22% 2 52 45 1 80% 1 1 2 3.20
10.3 Kinley water-1L PET 0 0.00% 2 0 45 0 80% 0 1 0 0.00
11 Cans-330 ml 15,275 4.76% 10 5657 110 51 80% 63 3 21 33.60
11.1 Diet Coke (5+1)330ml Can 5,122 1.60% 10 1897 110 17 80% 22 3 7
11.2 Coca-Cola Can 4,209 1.31% 10 1559 110 14 80% 18 3 5 8.00
11.3 Diet Coke Can 3,029 0.94% 10 1122 110 10 80% 12 3 4 6.40
11.4 Sprite Can 1,519 0.47% 10 563 110 5 80% 6 3 2 3.20
11.5 Fanta Can 1,033 0.32% 10 383 110 3 80% 4 3 2 3.20
11.6 Thums Up Can 363 0.11% 10 134 110 1 80% 2 3 1 1.60
12 Canisters 753 0.23% 5 139 6 23 80% 29 2 15 24.00

Coca-Cola CnstrPOS18 Postmix
12.1 434 0.14% 5 80 6 13 80% 17 2 8 12.80
18L
Fanta O CnstrPOS18 Postmix
12.2 135 0.04% 5 25 6 4 80% 5 2 3 4.80
18L
12.3 Sprite CnstrPOS18 Postmix 18L 113 0.04% 5 21 6 3 80% 4 2 2 3.20
12.4 Limca CnstrPOS18 Postmix 18L 71 0.02% 5 13 6 2 80% 3 2 2 3.20
13 Maaza Tetra 7,264 2.26% 5 1345 180 7 80% 9 2 5 8.00
TOTAL 3,20,757 100% 33,495 683 852 30 407 651

2. Analysis of sales data
Cumulat Calculated
Peak % SKU Allotted
Sr. ive Floor Stacking No of Cases/ Cases
SKU Month(Ma Contrib Classificati Legend Pallet
No contribu Pallet Height Pallets Pallet Stored
y 09) Sales ution on positions
tion Positions
Lim
1 Limca-600 ml PET 30,189 9.38% 9.38% A 31 32 2 64 45 2880
600
Coke
2 Coca-Cola RGB 300 ml 26,794 8.32% 17.70% A 22 24 3 72 45 3240
300
Coke
3 Coca-Cola-2L/2.25L PET 20,593 6.40% 24.10% A 26 26 2 52 36 1872
2.25
Coke
4 Coca-Cola-600 ml PET 19,952 6.20% 30.30% A 20 24 2 48 45 2160
600
Lim
5 Limca RGB 300 ml 19,888 6.18% 36.48% A 17 16 3 48 45 2160
300
MZ
6 Maaza Juice RGB 19,023 5.91% 42.39% A 17 17 3 51 45 2295
250
7 Limca-2L/2.25L PET 17,609 5.47% 47.86% A 22 Lim 2.25 24 2 48 36 1728
TU
8 Thums Up RGB 300 ml 17,441 5.42% 53.27% A 15 16 3 48 45 2160
300
Wtr
9 Bonaqua-1L PET 11,154 3.47% 56.74% A 22 22 1 22 45 990
1L
Spr
10 Sprite-600 ml PET 10,182 3.16% 59.90% A 14 16 2 32 45 1440
600
Fnt O
11 Fanta-2L/2.25L PET 9,474 2.94% 62.85% A 12 12 2 24 36 864
2.25
Fnt O
12 Fanta O-600 ml PET 9,214 2.86% 65.71% A 11 11 2 22 45 990
600
TU
13 Thums Up-600 ml PET 8,622 2.68% 68.39% A 12 12 2 24 45 1080
600
Fnt O
14 Fanta RGB 300 ml 7,372 2.29% 70.68% B 7 8 3 24 45 1080
300
MZ
15 Maaza Tetra 7,264 2.26% 72.93% B 5 6 2 12 180 2160
200
Spr
16 Sprite RGB 300 ml 7,074 2.20% 75.13% B 7 8 3 24 45 1080
300
MZ
17 Maaza-250 ml Juice PET 6,449 2.00% 77.14% B 16 15 1 15 45 675
250P
Coke
18 Coca-Cola-500 ml PET 6,007 1.87% 79.00% B 9 9 2 18 45 810
500
Lim
19 Limca RGB 200 ml 5,487 1.70% 80.71% B 4 4 3 12 63 756
200
D.Co
20 Diet Coke (5+1)330ml Can 5,122 1.59% 82.30% B 7 7 3 21 110 2310
330
MZ
21 Maaza-600 ml Juice PET 4,440 1.38% 83.68% B 12 12 1 12 45 540
600
Coke
22 Coca-Cola Can 4,209 1.31% 84.98% B 5 5 3 15 110 1650
330
Soda
23 Kinley Soda-RGB 3,460 1.07% 86.06% B 4 4 3 12 45 540
300
MZ
24 Maaza 1.2 L Juice PET 3,415 1.06% 87.12% B 8 8 1 8 45 360
1.2 L
TU
25 Thums Up-2L/2.25L 3,353 1.04% 88.16% B 4 6 2 12 36 432
2.25
D.Co
26 Diet Coke-500 ml PET 3,102 0.96% 89.13% B 4 4 2 8 45 360
500
D.Co
27 Diet Coke Can 3,029 0.94% 90.07% C 4 4 3 12 110 1320
330
28 Sprite-2L/2.25L PET 2,940 0.91% 90.98% C 3 Spr 2.25 3 2 6 36 216
Coke
29 Coca-Cola RGB 200 ml 2,742 0.85% 91.83% C 2 2 3 6 63 378
200
Lim
30 Limca-500 ml PET 2,730 0.85% 92.68% C 4 5 2 10 45 450
500
Pulpy
31 Minute Maid-400 ml Juice PET 2,292 0.71% 93.39% C 6 6 1 6 45 270
400
TU
32 Thums Up RGB 200 ml 2,207 0.69% 94.08% C 2 2 3 6 63 378
200
Spr
33 Sprite Can 1,519 0.47% 94.55% C 2 2 3 6 110 660
330
Fnt O
34 Fanta O-500 ml PET 1,513 0.47% 95.02% C 2 2 2 4 45 180
500
Schw
35 Schweppes Tonic Water 1,414 0.44% 95.46% C 1 1 3 3 45 135
Tonic
Spr
36 Sprite RGB 200 ml 1,273 0.40% 95.85% C 1 1 3 3 63 189
200

Cumulat Calculated
Peak % SKU Allotted
Sr. ive Floor Stacking No of Cases/ Cases
SKU Month(Ma Contrib Classificati Legend Pallet
No contribu Pallet Height Pallets Pallet Stored
y 09) Sales ution on positions
tion Positions
Fnt O
37 Fanta Orange RGB 200 ml 1,143 0.36% 96.21% C 1 1 3 3 63 189
200
Lim
38 Limca-1L PET 1,138 0.35% 96.56% C 2 2 2 4 36 144
1L
Coke
39 Coca-Cola-350 ml PET 1,049 0.33% 96.89% C 2 2 2 4 45 180
350
Fnt O
40 Fanta Can 1,033 0.32% 97.21% C 2 2 3 6 110 660
330
TU
41 Thums Up-500 ml PET 950 0.30% 97.50% C 2 2 2 4 45 180
500
Coke
42 Coca-Cola-1L PET 749 0.23% 97.74% C 2 2 2 4 36 144
1L
Lim
43 Limca-350 ml PET 724 0.22% 97.96% C 1 1 2 2 45 90
350
Wtr
44 Bonaqua-500 ml PET 707 0.22% 98.18% C 2 2 1 2 45 90
500
Soda
45 Kinley Soda-600 ml PET 700 0.22% 98.40% C 2 3 2 6 45 270
600
Fnt O
46 Fanta O-350 ml PET 575 0.18% 98.58% C 2 2 2 4 45 180
350
Pulpy
47 Minute Maid-250 ml Juice PET 569 0.18% 98.75% C 1 1 1 1 45 45
250
Fnt O
48 Fanta-1L PET 545 0.17% 98.92% C 2 2 2 4 36 144
1L
Spr
49 Sprite-350 ml PET 535 0.17% 99.09% C 2 2 2 4 45 180
350
Spr
50 Sprite-500 ml PET 454 0.14% 99.23% C 1 2 2 4 45 180
500
Coca-Cola CnstrPOS18 Postmix
51 434 0.13% 99.37% C 8 Coke 8 2 16 6 96
18L
TU
52 Thums Up Can 363 0.11% 99.48% C 1 1 3 3 110 330
330
Fnt A
53 Fanta A-600 ml PET 307 0.10% 99.57% C 1 1 2 2 45 90
600
TU
54 Thums Up-1L PET 302 0.09% 99.67% C 1 2 2 4 36 144
1L
Fnt A
55 Fanta A-350 ml PET 269 0.08% 99.75% C 1 2 2 4 45 180
350
Spr
56 Sprite-1L PET 145 0.05% 99.80% C 1 1 2 2 36 72
1L
Schw
57 Schweppes Gingerale 144 0.04% 99.84% C 1 1 3 3 45 135
Ginge
Fanta O CnstrPOS18 Postmix
58 135 0.04% 99.88% C 3 Fnt O 4 2 8 6 48
18L
59 Sprite CnstrPOS18 Postmix 18L 113 0.04% 99.92% C 2 Spr 4 2 8 6 48
TU
60 Thums Up-350 ml PET 105 0.03% 99.95% C 1 1 2 2 45 90
350
61 Limca CnstrPOS18 Postmix 18L 71 0.02% 99.97% C 2 Lim 2 2 4 6 24
Schw
62 Schweppes Soda 36 0.01% 99.98% C 0 1 3 3 45 135
Soda
Pulpy
63 Minute Maid 1L Juice PET 31 0.01% 99.99% C 1 1 1 1 45 45
1L
Schw
64 Schweppes Bitter Lemon 21 0.01% 100.00% C 0 1 3 3 45 135
Bt L
Fnt A
65 Fanta Apple RGB 200 ml 0 0.00% 100.00% C 0 1 3 3 63 189
200
TOTAL 3,21,895 100% 407 433 928 45225

31183-Sujit Pawar-Warehouse Layout Modification

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31183-Sujit Pawar-Warehouse Layout Modification

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Symbiosis Institute of Business Management, Pune

Sujit N.Pawar |SIBM |2008-2010 1

Hence the warehouse productivity becomes important parameter of the

Sujit N.Pawar |SIBM |2008-2010 2

Since the project is about warehouse, an understanding of typical warehouse

 Warehouse Operations In HCCBPL

 Structure Of A Typical Warehouse

Sujit N.Pawar |SIBM |2008-2010 3

 Activities Carried Out At A Warehouse

1. Loading/Unloading: This includes:

a. Unloading of fresh stock from factory vehicles

2. Order Processing: Includes:

5. Others: Miscellaneous activities like housekeeping, office peons, security,

Sujit N.Pawar |SIBM |2008-2010 4

The warehouse productivity is measured in terms of the following metrics:

1. Total Incident Rate

Sujit N.Pawar |SIBM |2008-2010 5

2. Warehouse Layout Optimisation

 Current issues in the storage of goods

1. Lack of a dedicated area earmarked for various SKUs

Sujit N.Pawar |SIBM |2008-2010 6

Sujit N.Pawar |SIBM |2008-2010 7

The methodology followed was as follows:

1. Studying the operations at the company warehouse at Lawrence Road in Delhi

2. Studying the existing layout at Lawrence Road depot

Sujit N.Pawar |SIBM |2008-2010 8

A sample table of the classification is shown below:

Annexure 2 shows the complete table for all the SKUs.

Sujit N.Pawar |SIBM |2008-2010 9

Peak Month Inventory = Peak Month Sales X Inventory Norm (Days)

Required Pallet Positions = Peak Month Inventory

Floor Pallet Positions = Required Pallet Positions

Fig.: Calculations for warehouse space

Sujit N.Pawar |SIBM |2008-2010 10

4. Alternate Layout Proposals

Sujit N.Pawar |SIBM |2008-2010 11

Sujit N.Pawar |SIBM |2008-2010 12

 Comparison of the two layouts

1. Faster loading/unloading time due to storage based on ABC classification of SKUs

Hence due care should be taken while implementing the layout.

Sujit N.Pawar |SIBM |2008-2010 13

1. Layout Proposal B is recommended for implementation

Sujit N.Pawar |SIBM |2008-2010 14

The warehouse is a complex hub of multiple activities occurring simultaneously. It is

Sujit N.Pawar |SIBM |2008-2010 15

1 RGB 200 ml 12,852 4.01% 3 1428 63 23 80% 28 3 10 16.00

1.1 Limca RGB 200 ml 5,487 1.71% 3 610 63 10 80% 12 3 4 6.40

1.2 Coca-Cola RGB 200 ml 2,742 0.85% 3 305 63 5 80% 6 3 2 3.20

1.3 Thums Up RGB 200 ml 2,207 0.69% 3 245 63 4 80% 5 3 2 3.20

1.4 Sprite RGB 200 ml 1,273 0.40% 3 141 63 2 80% 3 3 1 1.60

1.6 Fanta Apple RGB 200 ml 0 0.00% 3 0 63 0 80% 0 3 0 0.00

3 Juice RGB 19,023 5.93% 2.5 1761 45 39 80% 49 3 17 27.20

4 Juice PET 17,196 5.36% 2.5 1592 45 35 80% 44 1 44 70.40

4.6 Minute Maid 1L Juice PET 31 0.01% 2.5 3 45 0 80% 0 1 1 1.60

5.1 350 ml 3,257 1.02% 4 483 45 11 80% 13 2 9 14.40

5.1.1 Coca-Cola-350 ml PET 1,049 0.33% 4 155 45 3 80% 4 2 2 3.20

5.1.2 Limca-350 ml PET 724 0.23% 4 107 45 2 80% 3 2 1 1.60

5.1.4 Fanta O-350 ml PET 575 0.18% 4 85 45 2 80% 2 2 2 3.20

5.1.3 Sprite-350 ml PET 535 0.17% 4 79 45 2 80% 2 2 2 3.20

5.1.5 Fanta A-350 ml PET 269 0.08% 4 40 45 1 80% 1 2 1 1.60

5.1.6 Thums Up-350 ml PET 105 0.03% 4 16 45 0 80% 0 2 1 1.60

5.2 500 ml 14,756 4.60% 3 1640 45 36 80% 46 2 22 35.20

5.2.1 Coca-Cola-500 ml PET 6,007 1.87% 3 667 45 15 80% 19 2 9 14.40