Sponsor:

UPS – Supply Chain Solutions

Research Team:

Suraj Alexander, Jason Hurt

Universities Involved:

University of Louisville

Start Date:

09/01/02

End Date:

09/01/03

Summary:

This project has the objectuve of developing a model to baseline current layout and client locations in terms of total distance traveled, developing a more efficient client slotting methodology that accounts for efficiency of overall operation, developing a more efficient area layout that reduces distance traveled, and developing a second model for alternative layout and gage opportunity for improvement
This new research project focuses on layout and slotting issues in a dynamic warehousing environment with shared customers within a single facility. UPS Supply Chain Solutions is involved in the value-added warehousing business for multiple clients that share common warehousing facilities. The product demand levels and client mix changes daily yet it is necessary to have efficient operations. How should warehouse space be allocated to the various customers? Within the client space, how should items be slotted to minimize total storage and retrieval costs? How should common areas such as aisles and docks be allocated? What type of material handling is best suited for this dynamic situation? These fundamental research questions motivate this project.
In allocating storage to incoming clients, it is important to consider the impact of the addition on the overall efficiency of operation
In order to maximize efficiency of order picking operation, it is important to analyze the relationship between slotting philosophy and area layout
Standardization between client processes and systems should be adopted whenever possible