chapter 94 company z storehouse center layout · pdf filewhich are related to postponement...
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Chapter 94Company Z Storehouse Center LayoutOptimization
Jianguo Zheng and Wanhua Zhang
Abstract The modern storehouse provides not only the traditional storage service,but also other value-added services such as package, OEM, and customer service,which are related to postponement strategy of manufacturing, so as to improve cus-tomer satisfaction. Storehouse is a value-added service center in the supply chain.This paper aiming at Company Z storehouse center activity and management prob-lems, using the system facility planning layout SLP (systematic layout planning)method, optimizes the layout of Company Z storehouse center, improves the effi-ciency of Company Z storehouse center activity and management, and increasesrevenue for the enterprise.
Keywords Storehouse center · Layout · Optimization · Efficiency
94.1 Current Situation and Problems of Company ZStorehouse Layout
Our team did three days’ research in Company Z storehouse center, recorded storagecenter activity and management process in details, and drew a map of Company Zstorehouse layout (see Fig. 94.1).
Storehouse activity and management problems in Company Z storehouse layoutare as follows:
J. Zheng (B)Business School, Sichuan University, Chengdu 610065, People’s Republic of Chinae-mail: [email protected]
W. ZhangXinBeiCun, Sichuan University, Chengdu 610065, People’s Republic of China
© Springer Science+Business Media Singapore 2017J. Xu et al. (eds.), Proceedings of the Tenth International Conferenceon Management Science and Engineering Management, Advances in IntelligentSystems and Computing 502, DOI 10.1007/978-981-10-1837-4_94
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Fig. 94.1 Company Z storehouse layout
(1) There is no independent picking up space in the storehouse. Goods which areremoved off shelves stack on the nearest passageway, which causes congestion.Forklifts can’t put inventory goods on shelves in time, which causes the overflowof the buffer space and leads to additional work such as transferring storehouse.Therefore, storehouse activity efficiency is very low.
(2) Tools are misplaced. Tools are left about after used, which causes tool damage.(3) The storage of each batch of goods. Because the paper storehouse and laundry
detergent storehouse are far away from the substitute storehouse, increases thelogistics cost.
(4) Some goods need the secondary package before delivery, but the secondarypackage workshop is far away from the paper storehouse and laundry detergentstorehouse, which increases the handling and human cost.
(5) The goods for sorting store in chaos, leading to inventory error. The team leaderspends most of the time doing the inspection work every day.
94.2 The Data Collection
According to the classification of Company Z’s goods, we reach the goods type table(see Table94.1). Company Z’s monthly average amount of inbound, outbound anddistribution (see Table94.2).
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Table 94.1 The goods category table of company Z storehouse
Serial number Product name Nature of product Storehouse
1 Pampers Solidity Paper storehouse
2 Whisper Solidity
3 Naturella Solidity
4 Soap (Safeguard, Olay) Solidity Kkincare and washingstorehouse
5 Shampoo (5 series) Liquid
6 Toothpaste Solidity
7 Toothbrush Solidity
8 Detergent powder(Tide, Ariel)
Solidity Detergent storehouse
9 Laundry detergent(Tide, Ariel)
Liquid
10 Skincare (Olay, SK II) Liquid Strong room (storehousefor goodsto-be-transferred)
11 Gillette series Solidity
12 Pringles Solidity
13 Duracell Solidity
14 Lang liquor Liquid Lang liquor storehouse
Table 94.2 Goods Q quantity table
Storehouse name Monthly average shipment Characteristics of distribution
Detergent storehouse 420,000 pieces Parallel distribution (equalmonthly)
Paper storehouse 380,000 pieces Quadratic distribution
Skincare and washingstorehouse
580,000 pieces Quadratic distribution
Lang liquor storehouse 50,000 pieces Parallel distribution
Strong room 110,000 pieces Parallel distribution
94.3 Optimization Process of Company Z StorehouseCenter Layout
Using clear, logical SLP (system layout planning) method, we optimize the storagecenter layout of Company Z.
(1) The department division and logistics flow chartName list of activity department division (see Table94.3).According to the process flow of all kinds of products in the storage center, we
draw the logistics process table of the various products (see Table94.4), in which Ais the entrance, and B is the exit.
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Table 94.3 Code table ofeach activity space
Serial number Name of activity unit
1 Office building
2 Dispatching room
3 The second package workshop
4 Receiving platform
5 Stocking buffer space
6a Detergent storehouse
6b Paper storehouse
6c Skincare and washing storehouse
6d Lang liquor storehouse
6e Strong room
7 Appliance storage space
8 Sorting activity space
9 Shipping buffer space
10 Shipping platform
Table 94.4 Logistics processtable
Product type Logistics process
Detergent A→4 →5→6a→8→9→10→B
Paper A→4→5→6b→8→9→10→B
Skincare and washingproducts
A→4→5→6c→8→9→10→B
Lang liquor A→4→5→6d→8 9→10→B
Valuables A→4→5→6e→8→9→10→B
(2) P-Q analysisAccording to theprinciple ofSLP, importingquantity of thegoods (seeTable94.2),
it concludes the results of the analysis of the products and production (P-Q) (seeTable94.5).
(3) Logistics strength analysisEach type of goods is packed into packages. Forklifts deliver all goods in the
storehouse Z. When there are multiple products going through the same starting andending departments, the different products going through the starting and endingunits are accumulated, and the monthly transportation volume is summarized, thenit concludes the transportation volume from-to table (see Table94.6).
By SLP method, the strength of logistics is divided into five grades A, E, I, O,U. A, E, I, O, U logistics route rate and the logistic volume rate is as follow (seeTable94.7), thus related logistics table of different activity space is concluded (seeTable94.8). According to Strength grade proportion and logistics related table ofdifferent activity space, design the activity units relationship table. (see Fig. 94.2).
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Table 94.5 Product P-Q analysis result table
Product type Difficulty level of handle Quantity (ten thousand pieces)
α Monthly average
Detergent 4 42
Paper 3 38
Skincare and washing products 2 58
Lang liquor 1 5
Valuables 1 19
Table 94.6 Transportation volume table from place-to place (Unit: ten thousand pieces)
Number A 4 5 6a 6b 6c 6d 6e 8 9 10 B
A – 162 – – – – – – – – – –
4 – – 162 – – – – – – – – –
5 – – – 42 38 58 5 19 – – –
6a – – – – – – – 42 – – –
6b – – – – – – – – 38 – – –
6c – – – – – – – – 58 – – –
6d – – – – – – – – 5 – – –
6e – – – – – – – – 19 – – –
8 – – – – – – – – – 162 – –
9 – – – – – – – – – – 162 –
10 – – – – – – – – – – – 162
B – – – – – – – – – – – –
Table 94.7 Logistics strength grade partition table
Logistics strengthgrade
Symbol Logistics routepercentage (%)
Logistics volumehandling percentage(%)
Absolutely necessary A 10 40
Especially important E 20 30
Important I 30 20
Ordinary important O 40 10
Unimportant U
(4) Comprehensive relationship between the activity unitsConsidering relationship between logistics and non-logistics, solve the close
degree level of comprehensive relationship (see Table94.4).
(5) Activity units relationship diagramAccording to the sheet size, select the unit length of the distance, and regulate:
the distance between two work units whose relationship close grades are classifiedas A is one length unit, E is two length units, and so on.
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Table 94.8 Rrelated logistics table of different activity space
Work unitnumber
4 5 6a 6b 6c 6d 6e 8 9 10
4 – 162 A – – – – – – – –
5 – – 42 E 38 E 58 E 5 O 19 I – – –
6a – – – – – – – 42 E – –
6b – – – – – – – 38 E – –
6c – – – – – – – 58 E – –
6d – – – – – – – 5 O – –
6e – – – – – – – 19 I – –
8 – – – – – – – – 162 A –
9 – – – – – – – – – 162 A
10 – – – – – – – – – –
Fig. 94.2 Activity space logistics intensity correlation
By Table94.8, conclude the logistics intensity contrast diagram (see Fig. 94.3).According to the comprehensive relationship level, i.e., A, E, I, O, U level
sequence, successively determine the activity unit arrangement of different levels,and the activity units of the same level are arranged according to the high and loworder of the comprehensive close degree score (Fig. 94.4).
Final correlation diagram of positions of the activity units is as follow (seeFig. 94.5).
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0 20 40 60 80 100 120 140 160 180
5-6d/6d-8
5-6e/6e-8
5-6b/6b-8
5-6a/6a-8
5-6c/6c-8
4-5/8-9/9-10
Fig. 94.3 Logistics intensity contrast figure
Fig. 94.4 Activity units comprehensive relationship
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Fig. 94.5 The activity unitposition relevant
(6) The layout schemeConsider correction factors: material handling, factory building structure, road,
utility piping layout, greening, and environment.Actual restrictions: the factory space, the transformation cost, the existing factory
building restrictions, policies and regulations, etc.Combined with correction factors and the actual restrictions, get the following
storehouse layout (see Figs. 94.6, 94.7 and 94.8).
Fig. 94.6 Storehouse layout scheme one
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Fig. 94.7 Storehouse layout scheme two
(7) Project evaluationWith SLP method, draw the above three storehouse optimization layout schemes.
In order to do the comparison between schemes better, select factors which affect thestorehouse activity and management, and use the analytic hierarchy process (AHP),do the comparison between each scheme and select the better one.
Defining the scale between elements (see Table94.9), we use square root methodto calculate the normalized relative importance degree of each factor relative to thecorresponding factor of the upper layer.
Wi =⎛⎝
n∏j=1
ai j
⎞⎠
1n
, (94.1)
W 0i = Wi∑
iWi
i = 1, 2, . . . , n. (94.2)
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Fig. 94.8 Storehouse layout scheme three
Table 94.9 Judgment matrix scale definition
Scale Implication
1 Comparing two elements, the importance is the same
3 Comparing two elements, the former is more important
5 Comparing two elements, the former is obviously more important
7 Comparing two elements, the former is especially important
9 Comparing two elements, the former is absolutely important
2, 4, 6, 8 Median of above adjacent judgments
Count backwards Comparing two elements, the latter is more important
Consistency Test method: Consistency index
C .I . = λmax − n
n − 1. (94.3)
λmax ≈ 1n
∑ni=1
(AW )iWi
= 1n
∑ni=1
∑nj=1 ai j W j
Wi, AWi stands for the i th component of
AW .
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E storehouse improvement effect
F1 management
convenience
F2 shortest path F3 flow Adaptability F4 external
compa bility
G1 Scheme 1 G2 Scheme 2 G3 Scheme 3
Fig. 94.9 The storehouse improvement evaluation structure model
Table 94.10 Index class one weight distribution table
E F1 F2 F3 F4 Wi W 0i λmi
F1 1 5 3 7 3.201 0.583 4.078
F2 2016/1/5 1900/1/1 2016/1/2 2 0.707 0.129 3.858 λmax =4.0215
F3 2016/1/3 1900/1/2 1900/1/1 3 1.189 0.217 4.078 C.I. =0.0072 <
0.1
F4 2016/1/7 2016/1/2 2016/1/3 1 0.393 0.071 4.072
To meet the requirements of storehouse activity and storehouse management,choose management convenience, path, the adaptation of process, the accessibilityof external coordination as evaluation factors. These factors form the evaluationstructure model. (see Fig. 94.9).
The Table94.10 shows: management convenience, shortest path, and processadaptability and external coordination factors respectively account for 0.583, 0.129,0.217, 0.071 of storehouse optimization index weight. Ci < 0.1. Consistency checkpassed. Table94.11 shows: plan one, two, three respectively accounts for 0.648,0.230, 0.122 of management convenience indices weight. Ci < 0.1. Consistencycheck passed.
The Table94.12 shows: plan 1, 2, 3 respectively accounts for 0.637, 0.258, 0.105of the shortest path index weights. Ci < 0.1. Consistency check passed.
The Table94.13 shows: plan 1, 2, 3 respectively accounts for 0.075, 0.592, 0.333of the process adaption index weights. Ci < 0.1. Consistency check passed.
The Table94.14 shows: plan 1, 2, 3 respectively accounts for 0.600, 0.200, 0.200of the external coordination index weights. Ci < 0.1. Consistency check passed.
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Table 94.11 Management convenience weights allocation chart of all the schemes
F1 G1 G2 G3 Wi W 0i λmi
G1 1 3 5 2.466 0.648 3.004 λmax =3.004
G2 2016/1/3 1900/1/1 2 0.874 0.23 3.002 C.I. =0.002 <
0.1
G3 2016/1/5 2016/1/2 1 0.464 0.122 3.005
Table 94.12 Shortest path weights allocation chart of the program
F2 G1 G2 G3 Wi W 0i λmi
G1 1 3 5 2.466 0.637 3.04 λmax =3.039
G2 2016/1/3 1900/1/1 3 1 0.258 3.04 C.I. =0.02 <
0.1
G3 2016/1/5 2016/1/3 1 0.406 0.105 3.036
Table 94.13 The process to adapt to the weights allocation chart of the program
F3 G1 G2 G3 Wi W 0i λmi
G1 1 2016/1/7 2016/1/5 0.306 0.075 3.012 λmax =3.014
G2 7 1900/1/1 1900/1/2 2.41 0.592 3.015 C.I. =0.007 <
0.1
G3 5 2016/1/2 1900/1/1 1.357 0.333 3.016
Table 94.14 External coordination scheme weights allocation table
F4 G1 G2 G3 Wi W 0i λmi
G1 1 3 3 2.08 0.6 2.999 λmax = 3
G2 2016/1/3 1 1 0.693 0.2 3 C.I.=0 <
0.1
G3 2016/1/3 1 1 0.693 0.2 3
Table94.15 shows: plan one, two and three respectively accounts for 0.519, 0.310,0.171 of relativeweight in improvement effects on storehouse layout scheme. Knownby the evaluation result, plan one is better than scheme 2, scheme 2 is better thanscheme 3, therefore, choose plan one to improve the layout scheme.
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Table 94.15 External coordination scheme weights allocation table
Fi F1 F2 F3 F4 Ci =3∑
i=1bi c j
0.583 0.129 0.217 0.071
G1 0.648 0.637 0.075 0.6 0.519
G2 0.23 0.258 0.592 0.2 0.31
G3 0.122 0.105 0.333 0.2 0.171
To sum up, after the evaluation analysis of factory general layout and storehouselayout schemes, come to the conclusion that the result of comprehensive evaluationof the combination of general layout and storehouse layout is as follows:
The best layout is the combination of general layout plan 2 and storehouse layoutplan 1.