Dr Hendrik Reefke – Warehousing
FT MSc LSCM 2021














Designing a Distribution Centre



Cranfield Business Supplies (CBS)
National Fulfilment Centre








INDIVIDUAL ASSESSMENT












Cranfield University
School of Management


Dr Hendrik Reefke – Warehousing
FT MSc LSCM 2021
2
INSTRUCTIONS
A group of warehouse consultants has put forward a design draft for the new
National Fulfilment Centre at Cranfield Business Supplies (CBS). You have
been tasked with evaluating this draft and providing design recommendations.
Individually you need to prepare and submit a report that reflects on the
illustrative warehouse design for CBS shown in this document.

You need to adhere to the following guidelines:
• Word Limit: 1500 Words for the body of the report (exclusive of cover
page, references, figures and tables).
• Include a word count on your cover page.
• Structure your report in a coherent way following the ‘Assessment Tasks’
outlined below.
• Support your arguments with suitable reference material from the
literature as required.
• The use of tables and figures is expected in order to convey detailed
information.


ASSESSMENT TASKS
Address the following tasks in your report:

1. Review and synthesise design steps/methodologies that are used for
warehouse design and re-design. Describe the planning data
requirements and explain the importance of the different kinds of data.
2. What are the benefits/strengths of the illustrative warehouse design
presented here and how does the design support the requirements of
CBS? Present TWO benefits/strengths and justify your choices.
3. Which aspects of the illustrative warehouse design should be improved
and how? Present FOUR design recommendations and justify them
accordingly. Present an improved internal and external layout that
incorporates your suggested improvements.


Dr Hendrik Reefke – Warehousing
FT MSc LSCM 2021
3
MARKING CRITERIA
The individual report will be marked against the criteria outlined in the marking
rubric below. Please bear in mind these criteria and indicated mark allocations
when structuring and writing your report.

REPORT CONTENT %
Review of design steps and planning data
Synthesis of literature on warehouse design steps and data
requirements.
30
Evaluation of the benefits/strengths of the current design draft
Justification and support for the design decisions.
20
Identification and illustration of potential design improvements
Explanation of design improvements and suggestions clearly illustrated.
40
STYLE & PRESENTATION %
Structure and completeness of the report
Layout, presentation, logical flow, and cohesion across sections. Table
of contents, page numbers, bibliography, figures/diagrams labelled, etc.
5
Clarity of communication
Grammar, spelling, ease of reading, and originality.
5
TOTAL 100


Dr Hendrik Reefke – Warehousing
FT MSc LSCM 2021
4
ILLUSTRATIVE CASE DESIGN
In this document you will find information about the proposed design draft
arranged as follows:
• Overview of supply chain structure
• Day in the life of the warehouse
• Internal layout
• Overview of zones and equipment
• External layout
• Timeline of warehouse activities

Overview of supply chain structure
The draft for the new National Fulfilment Centre is designed to meet the
requirements of the supply chain structure shown in Figure 1.


Figure 1: Assumed supply chain structure
Inflows into the National Fulfilment Centre include deliveries from various global
suppliers. Distribution is via nine transhipment depots (75% of shipments), the
parcel carrier (10%), and vans for distribution to the local midlands area (15%).

Day in the life of the warehouse
As can be seen from Figure 2, the planning base used by consultants is for
average throughput and peak stockholding for the three-year forecast provided.
A reserve stock area for all received items is being proposed. Based on an ABC
analysis of product throughput, slow moving items will be picked in the reserve
store whilst a separate picking area with four days of stockholding is planned
for fast and medium moving items.

Dr Hendrik Reefke – Warehousing
FT MSc LSCM 2021
5

Figure 2: Day in the life of the warehouse

Internal layout
The following indicative layout (Figure 3) has been proposed by the consultants.
It includes seven docks for end-un/loading and also a ramp so that vans can
drive into the warehouse for un/loading. Offices, toilets, and a canteen are
situated on one side. Other areas include an area for storage of all large items
(A); a picking area (B) for small and medium sized items with medium/fast
throughput; a reserve store (C) for all small and medium sized items that also
allows for picking of slow moving items; a manual sortation and packing area
(D) for all small and medium sized items; and a conveyor belt (E) that connects
picked items to the sortation and packing area. In (F) product returns are being
checked and then stored on shelving units if deemed fit for resale.

Figure 3: Internal layout of the warehouse
Dr Hendrik Reefke – Warehousing
FT MSc LSCM 2021
6

Overview of zones and equipment
The zones and equipment proposed are further detailed in Table 1.

Zone Description Equipment
A
Storage and picking area for all
large items.
• Long span racking within
manual operating height
• Manual picking with two
pickers
B
Picking area for fast and medium
moving lines (small and medium
size).
• Adjustable pallet racking on
three levels
• Picking from pallets
• Low level order picking trucks
• High level order picking trucks
C
Reserve store for all small and
medium sized items.
Picking area for slow moving
items (small and medium size).
• Narrow aisle racking to a
height of 15m
• Narrow aisle trucks for all
storage and picking
operations
D
Sortation and packing area for all
items.
• Consolidation area for picked
items
• Sortation area for manual
sortation
• Pack stations for manual
packing operations
E
Conveyor belt from picking area to
packing area. Picking is done by
order in zone B and the picked
items are transported to zone D.
• Pick to belt concept
• Drop off areas for picked
items along the belt
F
Return area for checking of all
returned items.
• Desk setups for
checking/testing of returns
• Shelving for storage of tested
items fit for resale
Table 1: Overview of proposed zones

Dr Hendrik Reefke – Warehousing
FT MSc LSCM 2021
7

External layout
The indicative external layout includes a car park for employees on one side of
the warehouse and also shows the access routes to the docks and van ramp.

Figure 4: External layout of the warehouse

Timeline of warehouse activities
The proposed timeline (Table 2) shows the main activities/operations on the
left-hand side and indicates their durations in blue shading. As is evident the
proposed timetable suggests an operation from 6.00am to 12.00am.
AM PM
Activities/Operations
06-
07
07-
08
08-
09
09-
10
10-
11
11-
12
12-
01
01-
02
02-
03
03-
04
04-
05
05-
06
06-
07
07-
08
08-
09
09-
10
10-
11
11-
12
Unloading
Receiving & Put-away
Return Processing
Picking
Sortation & Packing
Marshalling &
Despatching

Table 2: Timeline of warehouse activities/operations

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