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Improving Inventory Control by Re-engineering of Warehouse.

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 1

LITERATURE REVIEW

Introduction of Ware House:

Abstract:

Developing an input-output model of a warehouse system to assess operational efficiency.

Model simultaneously accounts for all of the critical resources (labor, space, and storage and

handling equipment) and the different workload requirements (Picking, storage and order

accumulation) of a warehouse. Warehouse and distribution facilities from a variety of industries,

including auto parts, dental and office supplies, electronics, fine papers, hardware, health care,

industrial packaging, mail order apparel, office machines, photographic supplies, and wholesale

drugs, and used the model to assess and compare their efficiencies. Warehouses using lower

levels of automation tend to be more efficient. This association is more pronounced in small

firms. Unionization is not negatively associated with efficiency and in fact may actually

contribute to higher efficiency.

Order picking has long been identified as the most labour-intensive and costly activity for almost

every warehouse; the cost of order picking is estimated to be as much as 55% of the total

warehouse operating expense. Any underperformance in order picking can lead to unsatisfactory

service and high operational cost for its warehouse, and consequently for the whole supply chain.

In order to operate efficiently, the order picking process needs to be robustly designed and

optimally controlled. This paper gives a literature overview on typical decision problems in

design and control of manual order-picking processes. We focus on optimal (internal) layout

design, storage assignment methods, routing methods, order batching and zoning. The research

in this area has grown rapidly recently. Still, combinations of the above areas have hardly been

explored. Order-picking system developments in practice lead to promising new research

directions.

Introduction:

Warehousing and transportation forms the backbone supply chain of all industries. Adequate

storage capacity and strategic location of the warehouse enables efficient functioning of supply

and distribution network and also provides strategic competitive advantage to the business.

Proper material handling, storage conditions and timely movement of goods are necessary as

improper handling and prolonged storage can deteriorate the quality of the stored product.


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Warehouse can play a key role in the integrated logistics strategy and its building and

maintaining good relationships between supply chain partners. Warehousing affects customer

service stock-out rates and firms sales and marketing success. A warehouse smoothens out

market supply and demand fluctuations. When supply exceeds demand, demand warehouse

stores products in anticipation of customers requirements when Demand exceeds supply the

warehouse can speed product movement to the customer by performing additional services like

marking prices, packaging products or final assembling etc.

Storage Warehouse:

A storage warehouse is a commercial building which is generally located in the industrial areas

and is used for the storage of goods. Storage warehouses are generally used by manufacturers,

wholesalers, exporters, transport business and customs to store goods.

.

A storage warehouse is an important part in the distribution chain of products. They are the hubs

where goods are stored to be distributed further. To help the movement of goods and the process

storage warehouses are equipped with cranes and forklifts.

With time the need of a typical warehouse has be declining due to the Just in Time policy

followed by the business to improve the returns of a business by reducing in process inventory.The JiT system promotes the delivery of products or parts directly from the manufacturer to the

merchant eliminating the need of a storage warehouse. But still storage warehouses are

commonly used due to the convenience they offer in the distribution chain. The latest

development is the retail store type warehouses where decorative shelving is replaced by tall

heavy duty industrial racks.
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Understanding Inventory:

Despite its importance to the supply chain, inventory is not universally well understood. It is

variously characterized, both positively and negatively, as an economic asset to a non-income-

producing use of capital funds.

Only when considered in light of all quality, client service and economic factorsfrom the

viewpoints of purchasing, manufacturing, sales and financedoes the whole picture of inventory

become clear. No matter the viewpoint, effective inventory management is essential to supply

chain competitiveness.

Inventory control is concerned with minimizing the total cost of inventory. In the U.K. the term

often used is stock control. The three main factors in inventory control decision making process

are:

The cost of holding the stock The cost of placing an order

The cost of shortage

The third element is the most difficult to measure and is often handled by establishing a "service

level" policy, e. g, certain percentage of demand will be met from stock without delay.

Types of Inventory:

Company using the different types of inventory,

Cyclic Inventory

Safety Inventory

Seasonal Inventory

Cyclic Inventory:

Cyclic inventory is the average amount of inventory used to satisfy demand between receipts of

supplier shipments. The size of the cyclic inventory is a result of production, transportation, or

purchased of material in large lots.

Safety Inventory:

Safety inventory is the inventory held in case demand exceeds expectation; it is held to counter

uncertainty. If the world were perfectly predictable, only cyclic inventory would be needed,


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because demand is uncertain and may exceed expectations, however, companies hold safety

inventory to satisfy an unexpectedly high demand.

Seasonal Inventory:

Seasonal Inventory is built up to counter predictable variability in demand, companies using

seasonal inventory buildup inventory in periods of low demand and store it for periods of low

demand and store it for periods of high demand when they will not have the capacity to produce

all that is demanded.

Lowering Inventory Costs:

Recent industry reports show that inventory costs as a percent of total logistics costs are

increasing. Despite this rise, many organizations have not taken full advantage of ways forlowering inventory costs.

There are a number of proven strategies that will provide payoff in the inventory area, both inclient service and in financial terms.

Some of these strategies for lowering inventory costs involve having fewer inventories while

others involve owning less of the inventory you have.

Regardless of which techniques you employ, proactive inventory management practices will

make a measurable difference in your operations.

JUST-IN-TIME INVENTORY CONTROL:

"Just-in-time production is a simple idea that may be difficult to implement " wrote Gershon and

Weiss.

"The basic concept is that finished goods should be produced just in time for delivery, and raw

materials should be delivered just in time for production. When this occurs, materials or goods

never sitidle, which means that a minimum amount of money is tied up in raw materials, semi

finished goods, and finished goods. The just-in-time approach calls for slashing production

and purchase lot sizes and also buffer stocksbut incrementally, a little at a time, month after

month, year after year. The result is sustained productivity and quality improvement with greater

flexibility and delivery responsiveness." This production concept, which originated in Japan and

became immensely popular in American industries in the early and mid-1990s, continues to be

hailed by proponents as a viable alternative for businesses looking for a competitive edge.
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Setting an Inventory Strategy

No single inventory strategy is equally effective for all businesses. Indeed, there are many

different factors that can impact the usefulness of a given inventory strategy, including

positioning of inventory, rationalization, segmentation, and continuous improvement efforts.

Moreover, small businesses in particular often face financial and logistical limitations when

erecting their inventory systems. And of course, different industries have different inventory

needs. Consumer goods producers, for instance, need to have well-balanced inventories at the

point of sale, while producers of industrial and commercial products typically do not have clients

that require the same degree of delivery lead time.

Inventory Accounting

The way in which a company accounts for its inventory can have a dramatic affect on itsfinancial statements. Inventory is a current asset on the balance sheet. Therefore, the valuation of

inventory directly affects the inventory, total current asset, and total asset balances. Companies

intend to sell their inventory, and when they do, it increases the cost of goods sold, which is

often a significant expense on the income statement. Therefore, how a company values its

inventory will determine the cost of goods sold amount, which in turn affects gross profit

(margin), net income before taxes, taxes owed, and ultimately net income. It is clear, then, that a

company's inventory valuation approach can cause a ripple effect throughout its financial picture.

One may think that inventory valuation is relatively simple. For a retailer, inventory should be

valued for what it cost to acquire that inventory. When an inventory item is sold, the inventory

account should be reduced (credited) and cost of goods sold should be increased (debited) for the

amount paid for each inventory item. This works if a company is operating under the Specific

Identification Method. That is, a company knows the cost of every individual item that is sold.

This method works well when the amount of inventory a company has is limited and each

inventory item is unique.

The Specific Identification Method, however, is cumbersome in situations where a company

owns a great deal of inventory and each specific inventory item is

relatively indistinguishable from each other. As a result, other inventory valuation methods have

been developed. The best known of these are the FIFO (first-in, first out) and LIFO (last-in, first-

out) methods.

FIFO: First-in, first-out is a method of inventory accounting in which the oldest stock items in a

company's inventory are assumed to have been the first items sold. Therefore, the inventory that
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remains is from the most recent purchases. In a period of rising prices, this accounting method

yields a higher ending inventory, a lower cost of goods sold, a higher gross profit, and a

highertaxable income.

The FIFO Method may come the closest to matching the actual physical flow of inventory. Since

FIFO assumes that the oldest inventory is always sold first, the valuation of inventory still on

hand is at the most recent price. Assuming inflation, this will mean that cost of goods sold will

be at its lowest possible amount. Therefore, a major advantage of FIFO is that it has the effect of

maximizing net income within an inflationary environment. The downside of that effect is that

income taxes will be at their greatest.

LIFO: Last-in, first-out, on the other hand, is an accounting approach that assumes that the most

recently acquired items are the first ones sold. Therefore, the inventory that remains is always the

oldest inventory. During economic periods in which prices are rising, this inventory accounting

method yields a lower ending inventory, a higher cost of goods sold, a lower gross profit, and a

lower taxable income. The LIFO Method is preferred by many companies because it has the

effect of reducing a company's taxes, thus increasing cash flow. However, these attributes of

LIFO are only present in an inflationary environment.

The other major advantage of LIFO is that it can have an income smoothing effect. Again,

assuming inflation and a company that is doing well, one would expect inventory levels to

expand. Therefore, a company is purchasing inventory, but under LIFO, the majority of the cost

of these purchases will be on the income statement as part of cost of goods sold. Thus, the mostrecent and most expensive purchases will increase cost of goods sold, thus lowering net income

before taxes, and hence net income. Net income is still high, but it does not reach the levels that

it would if the company used the FIFO method.
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Warehouse Layout & Design:

Warehousing was supposed to disappear with Lean Manufacturing. This has rarely occurred but

the nature of warehousing often does change from storage-dominance to transaction dominance.

In addition, the trend to overseas sourcing has increased the need for warehousing and itsimportance in the supply chain.

Warehousing buffers inbound shipments from suppliers and outbound orders to customers.Customers usually order in patterns that are not compatible with the capabilities of the

warehouse suppliers. The amount of storage depends on the disparity between incoming andoutbound shipment patterns.

Order Picking In the Warehouse:

Order picking can be defined as the activity by which a small number of goods are extracted

from a warehousing system, to satisfy a number of independent customer orders. Picking

processes have become an important part of the supply chain process. It is seen as the most

labor-intensive and costly activity for almost every warehouse, where the cost of order picking is

estimated to be as much as 55% of the total warehouse operating expense.

As the order picking process involves significant cost and can affect customer satisfaction

levels, there have been increasing numbers of process improvements proposed to help companies

with this supply chain issue.

Design Strategies:


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One key to effective design is the relative dominance of picking or storage activity.

These two warehouse functions have opposing requirements.

Techniques that maximize space utilization tend to complicate picking and render it inefficient

while large storage areas increase distance and also reduce picking efficiency. Ideal picking

requires small stocks in dedicated, close locations. This works against storage efficiency.

The figure below shows how different transaction volumes, storage requirements and

technologies lead to different design concepts.

High Pick & High Storage

LOW PICKING & HIGH

STORAGE


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This indicates a large and active warehouse such as a Distribution Center (DC). In these

situations, high technology automated picking combined with mechanized handling and highdensity storage justifies itself.

Low Pick & High Storage

The requirement is for high density storage with high bays, multi-levels and dense packing. Lowturnover means that picking can be manual or semi-manual.

High Pick & Low StorageWith high picking activity but low storage, the picking area should be compact and dense

and storage is simple. Some automation of picking may be justified.

Low Pick & Low Storage

A simple, small warehouse requires neither automation nor sophisticated storage devices.Stacked pallets, floor storage or simple racks and shelves suffice. Handling is manual.

Order Picking In The Warehouse

Order picking can be defined as the activity by which a small number of goods are extracted

from a warehousing system, to satisfy a number of independent customer orders. Picking

processes have become an important part of the supply chain process. It is seen as the most

labor-intensive and costly activity for almost every warehouse, where the cost of order picking is

estimated to be as much as 55% of the total warehouse operating expense. As the order picking

process involves significant cost and can affect customer satisfaction levels, there have been

increasing numbers of process improvements proposed to help companies with this supply chainissue.

The challenge is to find the right tools to increase accuracy and improve picking productivity,

and thus reduce labor costs. Take it one step further, and you have to decide which technology is

most effective: bar code scanners or voice-recognition devices?


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Solutions For Order Picking

A number of supply chain academics such as G.P. Sharp and Edward Frazelle have proposed a

number of ways of classifying the order picking system. Four solutions have been identified for

order picking.

Picker to Part

Part to Picker

Sorting System

Pick to Box

Picker To Part

This particular method is very common and found in most warehouse environments. The process

involves a storage area, a picking area and a material handing system that is used to refill the

picking locations from the storage area, which can be forklift based or more specialized such as

gravity flow racks. The storage area will contain the items required to fulfill the customer orders.

The picking operator can then pick the items for each customer order from the items stored in the

picking area. As all the items are in a smaller area than the regular warehouse, the picking

operator can fulfill the order more efficiently than if they had to pick the items from the general

storage area in the warehouse. The gravity flow racks are especially useful for items that are

commonly ordered so the picking operator can be in one location and pick items from the trays

in front of them. There are a number of technological advances in picker to part processes such

as pick to light or voice picking. These systems allow picking operators are informed whichitem to pick based on a light appearing on the item location or a voice informing the operator on

a headset which item to pick.

Part To Picker

The part to picker method employs the same physical locations as the previous method; storage

area, picking area and a material handling system that moves the items from the storage area to

the picking area. The difference with this method is that the picking area is made up of a series of

picking bays. The items are moved from the storage area and delivered to the picking bays. Each

bay receives the items for one or more orders. The picking operator collects the items delivered

to their bay and the customer order is fulfilled in this manner. This method can be subject to

wasted labor as picking operators can find themselves waiting for items to be delivered to their

picking location.


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Sorting System

The sorting process including the requirement for a picking area, a storage area, replenishment of

the picking area and a sorter. This method uses automatic material handling system consisting of

multiple conveyors and a number of sorting devices. The items are placed on a conveyor in the

storage area and the items are sorted for each particular order. The operator in the picking area

collects the items that have been sorted for a customer order and processes that order. The

efficiency is gained because the operator does not have to consume time collecting individual

items.

Pick To Box

Pick to box is similar to the sorting solution as it uses the same elements; a picking area, a

storage area, replenishment of the picking area and a sorter. The picking area is organized so that

there are a number of picking zones connected by a conveyor system. The operator fills the box

with the items on a customer order and the box moves to the picking zones until the customer

order is complete and it is then ready for shipment to the customer. The efficiencies are gained

because the operator does not have to consume time collecting individual items, but the cost of

the initial set up of this solution could negate any cost benefits that the solution offers.

Choosing an order picking system depends on any number of requirements such as cost,

complexity, number of customer orders, size and number of items, etc. Every company has a

unique requirement and one order picking solution may suit one business and not another.

Determining the requirements will ensure that the most efficient order picking solution isselected.

Current Warehousing Problems

Space Utilization

Costs too high

Poor productivity

Poor layout

Processes not working
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Measuring Tools for the re-engineering of the ware house

5S

About 5S: What is 5S ?

5-S can be defined as

1. Seiri (Proper Arrangement and Clearing Up)

a) Look around work area and ask yourself is it really necessary for all items to be there?

b) Separate O.K., re workable and rejected items

c) Rework the re workable items and dispose of the rejected items.

2. Seiton (Orderliness)

Items must be placed in prefixed locations so that they are easily accessible and can be easily

used. Make sure that items can be clearly identified by labeling them properly.

3. Seiso (Clean Up)

Seiso means cleaning the work place.

4. Seiketsu (Standardization)

Even a clean work place with proper selection and proper arrangement will soon become dirty if

Seiri, Seiton and Seiso are not continuously repeated. Let us prevent problems by keeping things

standardized and maintaining a good environment.

5. Shisuke (Discipline)

Everyone should be disciplined to follow strictly the rules and maintain standards while working.

For example let us adhere to the timings and let us follow the prescribed operation standards.

Benefits of 5S:

Saving of searching time.

Making availability of extra space in plant.

Safety of workers in warehouse.


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Before the re-engineering of warehouse I found that:

Space utilization is not proper.

Picking times is more.

They doing outward scanning in two places.

No any identification mark for the brands.

Advantages of Re-engineering Warehouse:

Proper Space utilization.

Reduces the picking time.

Proper identifications of rack number, brands and others.

Proper marking, where to store the put way and outward.

References:

Shoppers Stop Warehouse in Bangalore

Supply Chain Management Book- Mr. Sunil Chopra

http://findarticles.com

http://www.elogistics.com

http://logistics.about.com
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Objective:

ImprovingInventory Control by Re-engineering of warehouse in supply chain management at

Prateek life Style Limited.

Introduction:

Companies look far and wide for ways to make their extended supply chains more efficient. But

sometimes the best solutions lie close to home.

Inventory exists in the supply chain because of the mismatch between supplier and demand. An

important role that inventory plays in the supply chain is to increase the amount of demand that

can be satisfied by having the product ready and available when the customer wants.

An apparel supply chain with high inventory levels at the retail stage has a high level of

responsiveness because a consumer can walk into a store and walk out with garments.

The Fundamental rethinking and Radical redesign of the business Process to achieve Dramatic

improvements in critical, contemporary measures of performance ..."

Sub- Objective:

To study the existing layout of ware house.

To change the existing layout.

Eliminate the extra work during process.

Better utilization of the space.

Replenishment in the picking area.

Increase the better identification for the inventory (Finished Goods) in the warehouse.


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Methodology:

1. Analyze the existing Layout process.

2. Conducting secondary research to find out the warehousing system

3. .Analyze the existing Inventory manages system.

4. Use the quality tools for implementation in ware house

5. Define the Standard Operating Procedure of the Warehouse.

References:

Ware houses like,

Shoppers Stop

Supply Chain Management (Strategy, Planning & Operation)

BY: Mr. Sunil Chopra

Production and Operation Management (manufacturing and services)

BY: Mr. Richards B. Chase


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Company Profile

Basic Information

Company Name: PRATEEK LIFESTYLE LTD

Business Type: Manufacturer, Trading Company, Buying Office,Distributor/Wholesaler

Product/Service

(We Buy):

Fashion Accessories, Caps, Sunglasses, Hand Bags, Wrist Bands,

Fashion Belts, Leather Belts, Sport Shoes, Leather Shoes, HomeFurnishing, Electronic Goods, MP4 Players, DVD Players

Brands: Coupon Stores, F Square

Number of Employees: 101 - 500 People

Factory Information

Factory Size (Sq.meters): Above 100,000 square meters

Factory Location: BangaloreQA/QC: In House

Number of Production

Lines:Above 10

Number of R&D Staff: 5 - 10 People

Number of QC Staff: 21 - 30 People

Contract Manufacturing: Buyer Label Offered

Company Name: PRATEEK LIFESTYLE LTD Street Address: 113, Krishna reddy industrial

area City: Kudlu gate, 7th Mile Province/State: Karnataka Country/Region: India Zip: 500068

Telephone: 91-080-41112634 Mobile Phone: 91-9845070731 Fax: 91-080-2572 7219 Website:http://www.prateeklifestyle.com
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Inventory:

Inventory exists in the supply chain because of the mismatch between supplier and demand. Animportant role that inventory plays in the supply chain is to increase the amount of demand that

can be satisfied by having the product ready and available when the customer wants.

Inventory is held through the supply chain in the form of raw material, work in process andfinished goods. Inventory is a major source of cost in a supply chain and has s huge impact on

responsiveness.

An apparel supply chain with high inventory levels at the retail stage has a high level of

responsiveness because a consumer can walk into a store and walk out with garments.

Present form of Inventory:

In Prateek life style inventory in the form ofFINISHED GOODS.

FINISHED GOODS: Finished goods classify according to brands:

Mark Taylor in the Mark TaylorFormal Shirts, Casual Shirts, T-shirts

Locomotive in the LocomotiveCasual Shirts, T-shirts, Denims

Highlander in the Highlander- Casual Shirts, T-shirts, Denims

Black Coffee in the Black coffee- Casual Shirts

Re-engineering: Systematic design, identification and arrangement of warehouse are desirablefor the saving in the costs.

Re-engineering, or more specifically, business process reengineering (BPR), is a term that waslaunched into the forefront of the business world by Michael Hammer and James Champy in

their 1993 book,Reengineering the Corporation: A Manifesto for Business Revolution. In thisbook, Hammer and Champy define reengineering as:

"The Fundamental rethinking and Radical redesign of the business Process to achieve Dramaticimprovements in critical, contemporary measures of performance ..."


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Re-engineering:

To ensure that the storage locations are well defined and have a unique identificationnumber.

To ensure that the locations are well defined in the system and coincide with theplanogram.

To ensure that the warehouse layout facilitates quick storage and picking facility.

The warehouse layout clearly earmarks the various functional areas.

Process Triggers:

At time of setting up a new warehouse or re-engineering of existing warehouse

In the re-engineering

Calculate the capacity according to brands.

Define the location of the brand.

Define the rack number.

Define the rack available for the particular of the brand. Define the Aisle.

Define the Slot number.

Re-engineering Cycle


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Goods Received

The supplier (Prateek Apparels Limited) sends goods to the warehouse, along with a GRN

The information on the GRN is entered into The Warehouse Management System

Manually creates put away instructions for the goods


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Order Processing/Goods Out

As the goods come to warehouse, a receiving receipt is given by the security guards.

After tallying the goods according to Challan, goods are stored to receive goods area.

Goods are then sending to GRN department where inward entry is being done in

VOYEGER Software.

Goods are then send to respective places for storing to the appropriate places and

arranged in racks in FIFO Manner.

Based on the sales report data, Pick slip is being generated with the help of VOYEGER

Software.

This Slip is handover to picking worker who manually search the goods and put thegoods for outward.

After outward scanning, goods are packed and send to dispatch department where afterdocumentation, goods are dispatched to the respective stores through van and small

trucks.


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Flow Diagram of the existing Process in warehouse:


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Existing Layout:

Existing layout is not in the proper and systematic manner.

Problem in Existing Layout:

Layout is not proper way, first segment is not proper align.

Not define the capacity of the brands

Not define the location of the brands.

Not define the aisle, rack number, slot number.

They are doing two places out ward scanning and no space for the office.

Picking time is much more, worker achieved only40 to 50% efficiency, of

the target.


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Modified Layout:

Features of Modified Layout:

Define the capacity of the Warehouse

Better Identification of the segment like Mark Taylor, High Lander,

Locomotive, and Black Coffee.

Identification of Aisle.

Identification of the Racks and Shelfs / Slots.

Utilization of the space.

Shifted the out ward scanning in a single place.

Picking efficiency will increase.

SEGMENT-1

SEGMENT-2

SEGMENT-3

SEGMENT-4


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Total Floor Area Calculation:

TOTAL AREA CALCULATION OF F SQUARE ZONE

TOTAL FLOOR AREA

TOTAL LENGTH 120 FEET

TOTAL WIDTH 69 FEET

TOTAL HEIGHT 9 FEET

TOTAL AREA LxW 74520 CUBIC FEET

ONE RACK SIZE LENGTH 4 FEET

WIDTH 2 FEET

HEIGHT 8 FEET

TOTAL AREA OF ONE

RACK LxWxH 64 CUBIC FEET

ONE RACK CONTAIN FIVE SLOTS

ONE SLOT SIZE

LENGTH 4 FEET

WIDTH 2 FEET

HEIGHT 1.6 FEET

TOTAL AREA12.8 CUBIC

FEET

TOTAL AISLE AREA/ IN ONE AISLE 5 RACKS

TOTAL AREA OCCUPIED BY ONE AISLE/5 RACKS

LENGTH 20 FEET

WIDTH 2 FEET

40 SQUARE FEET

TOTAL RACKS 374

TOTAL AREA OCCUPIED BY TOTAL RACKS

23936 CUBIC FEET

TOTAL FREE AREA

TOTAL AREA BETWEEN SLOTS


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Total Area for F Square: 74520 Cubic feet

Numbers of floors = 3,

Total warehouse area 74520x3 = 223560 Cubic feet.

Ground Floor is dedicated to Logistics and Storage for the Coupon, F Square.

First floor is dedicated to Coupon.

Second floor is dedicated to F Square.

WAREHOUSE CAPACITY:

BRANDS PIECES

BLACK COFFEE 10000

MARK TAYLOR FORMAL SHIRTS 30000

MARK TAYLOR CASUAL SHIRTS 25000

MARK TAYLOR T-SHIRTS 35000

HIGHLANDOR SHIRTS 30000

HIGHLANDOR T SHIRTS 20000

LOCOMOTIVE SHIRTS 25000

TOTAL LENGTH 80 FEET

WIDTH 2.75 FEET

NO. OF SLOTS SPACES 9

TOTAL SPACE AREA BETWEEN SLOTS 1980 SQUARE FEET

TOTAL AREA BETWEEN ONE SEGMENT TO ANOTHER SEGMENT

SPACES BETWEEN THE ONE SEGMENT TO ANOTHER SEGMENT

LENGTH 4 FEET

WIDTH 69 FEET

NO. OF SPACES 3

TOTAL SPACE AREA BETWEEN SEGMENTS 828 SQUARE FEETFEEE SPACE BETWEEN LAST SEGMENT TO WALL

LENGTH 100 FEET

WIDTH 4 FEET

TOTAL FREE AREA B/W LAST SEGMENT TOWALL 400 SQUAREFEET


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LOCOMOTIVE T SHIRTS 40000

TOTAL 2,15,000

RACKS REQUIRE FOR LOCOMOTIVE SHIRTS

TOTAL SHIRTS INVENTORY 25000

1 SHELF CAPACITY 210

SO, TOTAL SHELF REQUIRE 119.0476

NOW, SHELF IN 1 RACK 5

SO, TOTAL RACK REQUIRE 23.809

BUFFER FOR UNDERUTILISED OF SHELFS DUE TO LARGE STYLES 10 %

BUFFER FOR OVERQUANTITY THAN DAILY AVERAGE DUE TO ORDER 10%

TOTAL BUFFER 20%

BUFFER RACKS REQUIRE 4.76

SO, TOTAL RACKS REQUIRE FOR LOCOMOTIVE CASUAL SHIRTS (INCLUDING

BUFFER) 28.571

TOTAL RACKS FOR CASUAL SHITRS 29

RACKS REQUIRE FOR LOCOMOTIVE T- SHIRTS:

TOTAL T-SHIRTS INVENTORY 40,000





BUFFER FOR UNDERUTILISED OF SHELFS DUE TO LARGE STYLES 10%


TOTAL BUFFER 20%



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SO, TOTAL RACKS REQUIRE FOR LOCOMOTIVE T SHIRTS (INCLUDING BUFFER)

32

SO, TOTAL RACKS REQUIRE FOR LOCOMOTIVE BRAND 61

RACKS REQUIRE FOR HIGHLANDER CASUAL SHIRTS


1 SHELF CAPACITY 96






TOTAL BUFFER 20%


SO, TOTAL RACKS REQUIRE FOR HIGHLANDER CASUAL SHIRTS (INCLUDING

BUFFER) 75


RACKS REQUIRE FOR HIGHLANDER T- SHIRTS:








TOTAL BUFFER 20%


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SO, TOTAL RACKS REQUIRE FOR HIGHLANDER T SHIRTS (INCLUDING BUFFER)

28

SO, TOTAL RACKS REQUIRE FOR HIGHLANDER BRAND 103

RACKS REQUIRE FOR MARK TAYLOR CASUAL SHIRTS








TOTAL BUFFER 20%


SO, TOTAL RACKS REQUIRE FOR MARK TAYLOR CASUAL SHIRTS (INCLUDING

BUFFER) 25


RACKS REQUIRE FOR MARK LAYLOR FORMAL SHIRTS:








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TOTAL BUFFER 20%


SO, TOTAL RACKS REQUIRE FOR MARK TAYLOR FORMAL SHIRTS (INCLUDINGBUFFER) 65

TOTAL RACKS FOR FORMAL SHITRS 25

RACKS REQUIRE FOR MARK TAYLOR T- SHIRTS:








TOTAL BUFFER 20%


SO, TOTAL RACKS REQUIRE FOR MARK YAYLOR T SHIRTS (INCLUDING BUFFER)

20

SO, TOTAL RACKS REQUIRE FOR MARK TAYLOR BRAND 110


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RACKS REQUIRE FOR BLACK COFFEE SHIRTS:








TOTAL BUFFER 20%


SO, TOTAL RACKS REQUIRE FOR BLACK COFFEE SHIRTS (INCLUDING BUFFER)21.429

TOTAL RACKS FOR BLACK COFFEE SHITRS 22


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TOTAL RACKS AND SHELF FOR F SQUARE ON 2ND FLOOR (EXISTING)

SEGMENT1:-

Total No. Of Aisle = 10

Total No of racks = 95

No of shelf in 1 rack = 5

Therefore, Total No of shelf in 1st

segment = 475

SEGMENT2:-




Therefore, Total No of shelf in 2nd

segment = 450

SEGMENT3:-




Therefore, Total No of shelf in 3rd segment = 475

SEGMENT4:-




Therefore, Total No of shelf in 4th

segment = 475

TOTAL NO OF RACKS IN 2ND FLOOR 375

TOTAL NO OF SHELFS IN 2ND

FLOOR = 1875


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TOTAL RACKS AND SHELF FOR F SQUARE ON 2ND FLOOR (MODIFIED)

SEGMENT1: MARK TAYLOR SHIRTS




Therefore, Total No of shelf in 1st

segment = 460

SEGMENT2: HIGHLANDER SHIRTSTotal No. Of Aisle = 10



Therefore, Total No of shelf in 2nd segment = 460

SEGMENT3: LOCOMOTIVE & BLACK COFFEE SHIRTS




Therefore, Total No of shelf in 3rd segment = 475

SEGMENT4: T SHIRTS (ALL BRANDS)




Therefore, Total No of shelf in 4th

segment = 475

TOTAL NO OF RACKS IN 2ND

FLOOR 374

TOTAL NO OF SHELFS IN 2ND

FLOOR = 1870


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BRAND ALLOCATION TO AVAILABLE RACKS ACCORDING TO SEGMENT (MODIFIED)

SEGMENT -1

AVAILABLE RACKS = 92

BRAND ALLOCATION = MARK TAYLORCATEGORY ALLOCATION = SHIRT

RACK REQUIRED FOR CASUAL SHIRT = 25

RACK REQUIRED FOR FORMAL SHIRT = 65

TOTAL RACK REQUIRE = 90


BALANCE RACKS = 2

SEGMENT -2


BRAND ALLOCATION = HIGHLANDER

CATEGORY ALLOCATION = SHIRT

RACK REQUIRED FOR CASUAL SHIRT = 75

RACK REQUIRED FOR FORMAL SHIRT = 0



BALANCE RACKS = 17

SEGMENT -3


BRAND ALLOCATION = BLACK COFFEE & LOCOMOTIVE

CATEGORY ALLOCATION = SHIRT

RACK REQUIRED FOR BLACK COFFEE SHIRT = 22

RACK REQUIRED FOR LOCOMOTIVE SHIRT = 29



BALANCE RACKS = 41

SEGMENT -4

AVAILABLE RACKS = 95BRAND ALLOCATION = ALL BRANDS

CATEGORY ALLOCATION = T-SHIRTS

RACK REQUIRED FOR MARK TAYLOR T SHIRT = 32

RACK REQUIRED FOR LOCOMOTIVE T SHIRT = 29

RACK REQUIRED FOR HIGHLANDER T SHIRT = 28



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Size Identification: In the each and every rack define the size, according the size

availability of the brand wise; define the size number in racks.

Slot Number:

Define the slot number according to segment, aisle, rack and shelf wise. It is the better

identification for the each segment and each brand.


BALANCE RACKS = 3

SIZE 37

SIZE 39

SIZE 44

SIZE 40

SIZE 42


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Example:

SL 01 01 01 01

SECOND LEVEL

RACK NUMBER

AISLE

SEGMENT

SHELF


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Work after Mid Jury:

Want to develop pick detail model according to Barcode detail and Slot number.

Want to develop model in a SQL form.


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lr, report, syn

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