Management Engineering - Logistics Management

Full exam

First letter of surname K EXERCISE 1.1 The company HEAT is designing a new AS/RS warehouse with single -deep storage racks. The layout of the new warehouse is shown in Figure 1: the storage aisles, served by one S/R machine each, are located at the left and right sides of the I/O point. The number of aisles located at the left side of the I/O system and at the right side of the I/O system is the same. Based on the following assumptions: • target storage capacity: 7,000 pallet loads (PLs); • number of st orage levels: 10; • maximum rack length: 60 m (see Figure 1); • gross size of each storage location: 2,600 * 900 * 1,600 (height) mm; • each storage location can hold 2 pallet loads; • item allocation to the storage locations: random; • Input/Output point at the thi rd level, Determine the minimum number of storage aisles to achieve the required storage capacity. EXERCISE 1.2 Considering the same setting described in Exercise 1.1 and the following additional assumptions: • S/R machine features: o number of forks per S /R machine: 1; o horizontal speed: 2.5 m/s; o vertical speed: 1.1 m/s; o fixed time for positioning: 4 s; o fixed time for one fork cycle: 5 s; o fixed time for acceleration + deceleration: 6 s; o the expected cycle time can be estimated through FEM 9851 rule, • Estimat e the average single command cycle time. EXERCISE 1.3 Considering the same setting described in Exercises 1.1 and 1.2, estimate the average dual command cycle time. EXERCISE 1.4 Considering the same setting described in Exercises 1.1 to 1.3 and the following additional assumptions: o availability of each S/R machine: 100%; o availability of the I/O point: 100%, Determine the maximum throughput capacity of the new warehouse. EXERCISE 1.5 Considering the same setting described in Exercises 1.1 to 1.4 an d the following additional assumptions: • warehouse operations are organized in shifts; each shift corresponds to 8 working hours; • the warehouse will work 250 days/year: o for 150 days/year, the warehouse will work 1 shift/day; o for the remaining 100 days/yea r, the warehouse will work 2 shifts/day; • expected inbound flow: 2,500 inbound pallet loads per shift; • expected outbound flow: 2,500 outbound pallet loads per shift, Determine the target throughput capacity of the new warehouse [PL/hour]. EXERCISE 1.6 Con sidering the same setting described in Exercises 1.1 to 1.5 and the following additional assumptions: • average power absorbed by a S/R when travelling: 35 kW; • impact of acceleration/deceleration and other “fixed” activities (fork cycle, positioning) on the energy consumption: negligible; • 100% dual command cycles; • energy cost for the company :EAT: 0.15 €/kWh, Estimate the yearly energy costs for the storage and retrieval activities. EXERCISE 1.7 Considering the same setting described in Exercises 1.1 to 1. 6 and the following additional assumptions: • availability of each S/R machine: 98%; • availability of the I/O system: 99.5%, Determine the probability that the throughput capacity of the new warehouse is at least 85% of the maximum throughput capacity. EXERCISE 2.1 The case picking system of the company BEAUTYLOG is a low -level picker -to-parts system with 20 working aisles whose racks are 10 m long and 1.6 m high. The picking system layout is shown in Figure 2. Each rack contains 20 picking l ocations, all of the same size. Based on the following assumptions: • the warehouse manages 800 items and each item is assigned to one picking location; • items are allocated to picking locations according to the random storage policy; • case picking is perfor med according to traversal routing and order picking policies; • average number of lines per order: 4, Assess the average within -aisles travel distance. EXERCISE 2.2 Considering the same setting described in Exercise 2.1, assess the average across -aisles travel distance. EXERCISE 2.3 Considering the same setting described in Exercises 2.1 and 2.2, but assuming that a batch picking policy is adopted and considering the following information: • number of orders per batch: 5; • on average, the overlapping eff ect concerns 20% of the order lines, Assess the average within -aisles travel distance in a picking tour. EXERCISE 2.4 Considering the same setting described in Exercises 2.1 to 2.3 and the following assumptions: • the batch picking policy is adopted for 5 0% of the orders (and the order picking policy for the remaining 50%); • average number of orders to be fulfilled: 100 orders/day; • average picking time in case of order picking policy: 240 s/tour; • average picking time in case of batch picking policy: 560 s/tour; • average number of cases per order line: 2; • hourly cost (including both picking operator and picking equipment costs): 24€/hour, Assess the expected unit picking cost [€/case]. EXERCISE 3.1 ALFA and BETA are two manufacturing companies operating i n the same geographical area. ALFA produces and sells cookies and snacks, while BETA produces and sells rice and canned food. Information about the production plants of the two companies is reported in Table 1. Information about the market areas served by the two companies is reported in Table 2: as shown in the table, ALFA and BETA serve the same customers, grouped in 4 market areas. Both ALFA and BETA serve the market areas by means of 1 -echelon network, with 1 central warehouse. A merge between the two c ompanies has been recently completed. Therefore, the companies are redesigning their distribution network to centralize their stock in one new central warehouse, whose location is to be determined according to the Center of Gravity model. Determine the ce ntroid location for the new warehouse. EXERCISE 3.2 Considering the same setting described in Exercise 3.1 and the following additional information: • conversion coefficient (from geographic coordinates to miles): 69; • correction coefficient (from miles t o km): 1.609; • the demand is stationary, i.e. it has no fluctuations over the months in a year; • the product mix of each shipment is the same as that of the year; • transportation fares, measured in [€/(km*ton)], are reported in Table 3, Assess the yearly tran sportation costs from the new warehouse (considering the location found in Exercise 3.1) to market area M2. EXERCISE 3.3 Considering the same setting described in Exercises 3.1 and 3.2 and the following additional information: • Safety stock of company ALFA, held in the CW before the merger: 5 million €; • Safety stock of company BETA, held in the CW before the merger: 2 million €, What is the expected overall amount of safety stock in the new warehouse? 9.9 million € 7 million € 3.5 million € 8.6 million € None of the proposed options 4.9 million € EXERCISE 3.4 Explain how you solved Exercise 3.3 (mandatory). QUESTION 1 With reference to a traditional (i.e., conventional) warehouse, explain how the selection of storage and handling systems affects the warehouse performance (i.e., storage and handling costs). In addition, illustrate the relationship between the storage and handling systems selection. QUESTION 2 First, describe the main variables related to stock management for a merchant with inventories working in an omnichannel context. Secondly, focusing on a retailer, such as Ikea Italy, with 1 distribution center and N stores with logistics capacity, what are the main pros and cons of the options related to the aforementioned variables?