Warehouse Design 1

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Warehouse Design Nguyen Thi Quynh Hoa s3817860
Warehouse Management (Royal Melbourne Institute of Technology University Vietnam)
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RMIT University Vietnam

Lecturer: Scott McDonald
WAREHOUSE DESIGN
PROJECT REPORT
TEAM MEMBERS:
VAN TUE NGHI - S3777212
TRAN PHUONG THAO - S3777217
NGUYEN LE QUYNH MAI - S3756902
NGUYEN THI QUYNH HOA - S3817860
NGUYEN PHAN THUC ANH - S3804800
WORD COUNT: 3120
MAIADO COMPANY

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"I declare that in submitting all work for this assessment I have read,
understood and agree to the content and expectations of the Assessment
Declaration."
Table of Contents
Executive Summary............................................................................................2
I. Introduction..................................................................................................4
II. General information....................................................................................4
1. Geographic Location:.................................................................................4
2. Features of products...................................................................................5
2.1 Product Assortments................................................................................5
2.2 SKUs........................................................................................................5
2.3 Inventory Management............................................................................6
2.4 Value-added services................................................................................6
III. Warehouse layout & operation:..............................................................7
1. Layout design.............................................................................................7
2. Inbound process..........................................................................................8
3. Outbound process.....................................................................................11
3.1 Order picking.........................................................................................11
3.2 Dispatch.................................................................................................11
3.3 Cross docking........................................................................................12
4. Reverse process........................................................................................13
4.1 Defective products.................................................................................13
4.2 Products of full value.............................................................................15
IV. OHS..........................................................................................................16
V. Equipment..................................................................................................17
VI. Operating system....................................................................................19
VII. Other facilities.........................................................................................21
VIII. Future growth.........................................................................................21
IX. Conclusion...............................................................................................21
X. References...................................................................................................22
XI. Appendices..............................................................................................24
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Executive Summary
This report results from the warehouse design by five members, intending to conceptualize
efficient inventory custody and distribution for Maiado, a luxury handbag company, looking
to construct a 20,000m2 warehouse for their Southern Vietnam operation. The facility is
located at the Hiep Phuoc Industrial Park, beside important main roads adjacent to
transportation platforms, while benefiting from utility and service support by the industrial
network and HCMC authorities. The growing market for both production and consumption of
luxury handbag in Vietnam have met with difficulties by these factors:
1. Existence of fake luxury handbags, thinning the market for authentic brands.
2. Lack of automated infrastructure and safety measures for warehousing personals.
3. Order inaccuracy met with across many industries. The above reason contributes
to this disadvantage, along with inefficient operation.
4. Lengthy order cycle time due to non-optimal warehouse layout and operation.
5. Inventory losses and unauthorized distribution (deriving from inventory losses).
6. Damaged and faulty products due to unthorough quality control procedures.
Solutions to be provided by the team will address the majority of these issues, in support of
smooth and seamless operation for Maiado supply chain as well as long-term growth for
downstream supply chain partners:
1. Elaborate reverse logistics procedures - highlighting access to warranties for
authentic retailer purchases.
2. U-shaped warehouse with dock doors on one end, easy to manage in-and-out
inventories and irrelevant resources.
3. Automated system for inventory management and safety concerns: RFID, EDI,
barcode, NEC Warehouse Inspection system, OHS guidelines.
4. Double-deep racking system for space efficiency, with corresponding
locating/retrieval MHEs: deep-reach truck.
5. Powered pallet truck with extended forks, higher capacity and timeliness for order
picking and warehouse transportation in general.
6. Zone picking method for better management of inventories and accurate picking
process.
7. Quality control for both inbound-outbound processes, with RFID portal systems
being final checkpoints for order sufficiency and warehouse security.

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8. Bulk consolidation by pallet wrapping machines to avoid the collision, damage,

and inventory loss during transportation.
9. Layout is designed according to order cycle time, with dynamic products stored
closest to both inbound-outbound areas.

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I. Introduction
Maiado is a Vietnamese company specializing in luxury handbags, which targets upper and
high-end customers in the south of Vietnam. As Maiado continues to develop significantly,
the need to expand our business network is essential. Our company anticipates offering our
products to 500,000 customers (end users). Therefore, the requirement of building a 20,000
2
m warehouse to achieve our goal and store more handbags, approximately 200,000
products to meet this need is our priority. Hence, it assigns a Logistics team, including five
members, to find a suitable location and design the warehouse layout. This report will
provide a comparative analysis of Maiado’s area, designs, operations, equipment, operating
system, facilities, occupational health and safety (OHS), and the potential future growth.
II. General information

1. Geographic Location:
The chosen warehouse is located in Hiep Phuoc Industrial Park (HIPC) with 1,686 hectares.
First, HIPC owns a strategic geographic location to approach cities and adjacent areas,
connecting the warehouse to both the domestic region and international market (Hiep Phuoc
n.d.) (Figure 1). It is located rightly on the main roads, National Expressways, and other
water transportation systems. Second, HIPC ensures finding a huge qualified labour source
from universities and colleges nearby (Prosquare n.d.). Next, owning proximity to three
international seaports, including SPCT, Tan Cang - Hiep Phuoc Port, and Saigon - Hiep
Phuoc Port, helping save time and transportation fee (Prosquare n.d.). Regarding utilities, the
priority of 24/24 electricity supply is instructed by Ho Chi Minh City leader; water supply
with the quantity up to 43,000 m3 /day; and industrial gas supply network, clean and
environmentally friendly resources. Moreover, the wastewater treatment capacity is 18.000
m3 /day and night (Prosquare n.d.). Lastly, HIPC supports A to Z, such as tax consultancy
services, investment licenses, construction permits (Bao Tin Real Estate Company n.d.).

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Figure 1. Subdivision Locations of HIPC
2. Features of products
2.1 Product Assortments
The warehouse contains four types of products with different colours. A variety of closures
are typically made with weather-resistant and durable materials.
2.2 SKUs
Figure 2. SKUs List

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For example, the SKU of the first black shoulder bag with push-lock closure inputted into the
computer is S - BK - P - 001, and the second one is S - BK - P - 002. The same processes are
applied to other product categories.
2.3 Inventory Management
The level of product assortment will be classified into three groups which are A, B, and C.
Applying the Pareto Principle to the inventory, it is necessary to keep the big 20 percent of
the products instead of keeping 80 percent in stock because 80 percent of the sales come from
that small 20 percent (Kubasakova, Poliakova & Kubaova 2015). Group A sells 4 bags once a
week, group B sells an average volume of 20 bags weekly, and others that sell well are in
group C. Therefore, the warehouse would store 20 percent of the item in category A,
following those in category B and C - making up about 30 and 50 percent respectively.
Figure 3. ABC categories
2.4 Value-added services
Value-added services help optimize supply chain management, create high value, and deliver
products efficiently to customers (Solistica 2019). In terms of custom labels for a leather
handbag, woven labels can be located outside or inside the internal pocket and large enough
to not miss it. Regarding packaging, each luxury handbag box includes a printed logo with a
ribbon bow.

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III. Warehouse layout & operation:
1. Layout design
Figure 4. The warehouse layout
With 20,000 m 2 provided to build a warehouse, the main warehouse building will be at the
top-right corner of the layout with a total area is 12,600 m 2 . The rest is 7,300 m 2 for
other purposes such as a 30m for the front yard, parking lot, locker, cafeteria, medical place,
break room, and toilet built on the left side. In the warehouse area, there are three entryways
to go inside the warehouse building. We divide one entrance used for worker-only and the
others used for trucks transporting in and out of the warehouse space.
The warehouse building will have 180m in length, 70m in width, and 12m in height.
Receiving and shipping areas are located right behind the dock doors, followed by staging
areas for sortation and staging. In-between these stations are the cross-docking area, the latter
being closest to dock doors. The down-right corner will be used to build a reverse logistics
area to fix or refurbish handbags and then transfer them to storage areas or move them to
shipping areas to sell them to retail outlets. Additionally, the warehouse building also has a
main office and IT office for the managers' staff and management office. There will be space
for future SKU expansion on the right of the central storage, now used as 3PL services.
There are 216,000 items in storage area (Figure 5).

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Figure 5. The number of products stored in each zone
2. Inbound process
Figure 6. Inbound
First, the inbound process starts with handbags and 3PL packages entering the warehouse via
the sawtooth dock area leaning 45 degrees compared to the apron space (Nova Technology
2017), minimizing the required space to 10.6 m from the main entrance for straight trucks.
The unloading process commences with an electric pallet jack carrying around five deliveries
per load through 5 dock doors (Appendix 14) from a straight truck to the receiving area.
Here, 3PL packages are delivered straight to their zone while company packages are put on a

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U-shape conveyor for quality control conducted by inspection team A unboxing all goods to
check for accessories components including zippers and buckles while the RFID called NEC
examines weight, size, and SKUs following pre-registered images and weight information.
Next, items are individually embedded with SKUs' data, shelf location via an RFID tag,
which can be automatically scanned in batch by remote readers (Qiu, Liang & Huang 2017).
Afterward, cameras and weight scales shoot and weigh handbags according to pre-registered
image recognition technology.
These along with a control terminal and server can act as a platform to exchange data with
the customer's warehouse management system. Therefore, the inspection process becomes
more accurate, owing to automation.
Figure 7. Warehouse Product Inspection System (NEC n.d.)

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Figure 8. Quality Control Specifications

(Adapted from NEC n.d., Stang 2015, SROA n.d.)
They are then all transferred to the staging area, which includes sorting, bulk wrapping by
machines, and transiting before being moved accordingly to order, either to the storage space
or cross-docking station. This type of logistics picks up items from a manufacturer to
multiple end clients providing minimal handling, storing, and high security (Luo, Yang &
Wang 2019). Additionally, the staging point provides handbag supporting services, including
adding paddings, foams, and paper boards for shape-keeping, whereas bubble-wrapping and
paper-wrapping avoid discoloration or stains.
After the assortment, on the one hand, all packages are placed on waiting pallets for the
electric power jack to deliver goods to scheduled shelves in storage while others are moved in
bulk on conveyors directly to the staging area on the dispatch side. In terms of storage room,
as the products are all high-end handbags, they are categorized into three sectors relying on
ABC assortment, which comprises zone A, zone B, and zone C.
Generally, the inbound warehouse process is mostly conducted by advanced tracking and
handling technology under human supervision, except for product assortments following their
next destination (storage/cross-docking) in the staging area, where it is done manually
following pre-set orders.
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3. Outbound process
Figure 9. Outbound
3.1 Order picking

The order-picking system we decided to utilize is zone picking. Zone picking allocates
resources in each area, allowing a more accurate picking process (van Gils 2018 et al., p.244).
There are two types of vehicles utilized in this process for mainly different purposes. The
deep-reach forklifts will be used for locating-retrieving items, and the power pallet truck for
outbound transportation and supporting bottom level retrieval, maneuvering sufficiently since
this racking system is space-efficient.
The deep-reach truck drivers will perform retrieval at their respective racking areas so that
inventories are ready for transfer when the powered pallet truck arrives. The deep-reach truck
drivers shall receive notifications to pick the pallets needed, then transfer them onto the
electric pallet truck to be moved to the value-added area before leaving for the dispatching
site.
3.2 Dispatch
This area is the preparation for inventories to leave the warehouse. Inventories will be taken
to the value-added service area and moved onto the quality control department (except for
3PL commodities) before arriving at the sort and staging area for dispatching.
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When arriving at the sort and staging area, the pallets are removed from the vehicle,
depalletized, unwrapped, and await further handling. The handbags' quality control procedure
is similar to that of the receiving process, only with the extra x-ray scanning process
(supervised by the inspection team) for product measurement.
Sortation: First, each labor takes charge of the order, collecting boxes along the conveyor
using RFID readers. As each box flows through, the RFID reader will inform the
corresponding orienting order(s) that it (may) belong to, so workers can pick, palletize, and
confirm back to the system. When the order has been sufficiently collected, the boxes' RFID
labels will be scanned in bulk, re-written with additional destination information, and
palletized.
Consolidation & Packaging: When every order has been palletized, the forklifts will carry
them to the end of the conveyor to be consolidated into bulks by wrapping machines,
avoiding displacement or collision while traveling, then moved to the shipping area. The
pallets will also be labeled with order-embedded RFID tags. Before loading, the forklifts will
drive through the RFID portal system, which picks up the pallets’ order information while
checking every box, automatically confirming the transfer and alerting when false or
insufficient pallets/boxes enter the trucks. This optimizes fulfillment accuracy and increases
security, preventing inventory losses.
3.3 Cross docking
The cross-docking process is just like the warehousing process, only without the storage
function (Cattani, Souza & Ye 2014, p. 893).
Packages will be quality checked and sorted to order using RFID at the receiving area, then
palletized on the powered pallet trucks to be consolidated by wrapping machine and driven
directly to the dispatch area, straight into the trucks. Using vehicles as the primary means of
transportation eliminates the need for time and workforce to load and unload packages from
the conveyors. Since the product quantity does not justify the need for continuous cross-
docking activities, investing in conveyor is also unjustifiable.
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4. Reverse process
The returned products are returned from three primary sources, including manufacturing
returns, distribution returns, and consumer (marketing) returns (Brito & Dekker 2004). The
manufacturing returns are not mentioned in this paper since they relate to components in
manufacturing parts. While distribution returns are mainly due to damage (in transport) or
surplus in stock, consumer returns are guaranteed products or end-of-use products (Talbot,
Lefebvre & Lefebvre 2007). They are classified into two types: defective products and
products of full value.
4.1 Defective products
The defective products in warranty period returned by customers and distributors are scanned
by RFID reader before receiving to ensure authorization. The returned items are stored in the
Reverse Logistics Area for further test on the defects. Those defects are classified based on
the Defect Classification List.
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Figure 10. Defect classification list (Adapted from Kohl’s 2008)
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After controlling and sorting the returns, those with minor defects are repaired or refurbished
in the Reverse area and delivered to customers or outlets for reselling. In contrast, those with
significant and critical defects are decided to send back to the manufacturing plant for
remanufacturing, reused, and recycled into raw material or disposal in the landfill.
4.2 Products of full value
While the decision on the inclusion of defective products into the reverse flows is positive,
the products of full value have negative decisions on inclusion (Starostka-Patyk 2017). Those
handbags are first-quality products, which means they are received in identical conditions
that they were sold. If any handbag cannot meet the ongoing standards, it is considered a
defective product. Therefore, those full-value products are redirected for resell in forwarding
logistics. To ensure no full-value handbag is mistakenly classified as defective ones, they are
inspected stringently during the collecting process.
Figure 11. Reverse Logistics flow
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IV. OHS
Figure 12. Risk management in warehouse (Adapted from HSE 2019, IHSN 2018, Paoletta 2020,
Adams 2020)
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Figure 13. Safety equipment (Adapted from TNT 2017, Warehouse1 2015, Complete Storage &
Interiors n.d., CSI n.d.)
V. Equipment
These equipment below are installed and used in our warehouse. All equipment will have
preventive maintenance, the maintenance time is based on types of equipment.
Equipment Description Quantity Price

(units)
Storage system Double deep - Accomplish higher stocking density, 10 $109,038

racking system whereas access to the pallets is still
(Figure 18) quick and easy.
- An extremely effective and strong
system with simple construction and
adjustment of load levels.
- Alterable pallet racking and racking
thoroughly tailored with products of
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various weight or quantity

(Ar Racking 2021)
Material handling Raymond Deep - Used for loading and unloading pallets 3 $155,769
equipment (MHE) Reach Forklift in the racking system in both inbound
Truck 7500 (Figure and outbound.
19) - Reach within the racks due to
expandable forks
- Enable double-deep pallet storage in the
racks, reducing two aisles out of every
five, for expanded storage density
(Raymond 2020)
- Works alongside the powered pallet
truck to retrieve pallets in our
warehouse
Electric pallet truck - Used for unloading and loading cargoes 5 $71,394
(Figure 20) from containers to the docking area and
from the docking area to the storage
system and vice versa for outbound.
- Sufficiently flexible to do it all from
dock work and horizontal transport to
low-level order picking, whilst meeting
high throughput and the most
demanding utilization, bringing energy
proficiency, downtime reduction, and
fewer maintenance expenses (Raymond
2020)
Automated pallet - Maximize workforce’s efficiency and 1 $86,538

truck (Figure 21) decrease repeatable horizontal transport
tasks
- Utilized for Inbound such as Staging to
Pick & Drop location and Crossdock
(staging to staging), material transfer
including Pallet from Pick & Drop to
Outbound staging and Outbound
comprising order pallets
(Raymond 2020)
Counterbalanced - Suitable for tasks in trailers, ramps and 1 $17307

Lift Truck (Figure stacking areas (Raymond 2020).
22) - Used for servicing, managing, storing
the empty pallets in our warehouse’s
pallet station. (see Figure )
Other equipments Pallets (Figure 23) - 15 boxes/ pallet 1440 $20,063
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“U” Shaped Belt - Utilized at the sorting and staging areas 2 $3461
Conveyor Line for concentrated sortation and
(Figure 24) consolidation, moving products to be
scanned and picked along the line.
- Assist quality control
Pallet Wrapping - Customize the wrapping type and wrap 2 $339

Machine (Figure 15 boxes/ pallet
25) - Allow to stack 15 boxes/pallet on the
racks, retrieve pallets from the racking
system and transfer pallets to the next
destination without collapse
RF Handheld - Give confirmation of receipts against 8 $2547

Scanner (Figure 26) buy orders, advanced shipping notices
(ASNs) and blind receipts
- Check stock counts by product, area, or
cycle count orders via system
- Furnish movement of commodities
from receiving to storage areas
(Bastian solutions n.d.)
Handheld barcode - Used to support RFID when the codes 2 $238

reader (Figure 27) are outwidth the RFID’s range of reader
Automated - Used for strapping boxes tightly 2 $1797

strapping machine
(Figure 28)
Total $468,491
Figure 14. Equipment used in warehouse
VI. Operating system

There are over 2,400 companies in 58 countries worldwide applying pc/MRP. Pc/MRP is a
cost-effective MRP system with fully integrated modules designing for manufacturing,
distribution, and retail operations (PCMRP n.d.a). By using the standard 13 modules, it offers
a number of potential benefits, for example, the software works flexibly from inventory
functions to purchasing to customer sales and invoicing (DMS Company, Inc n.d.). With the
low-price system (Figure 12), the team can enhance the warehouse performance efficiently
and be able to keep the individual processes and flows of resources at the lowest possible
cost.
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Figure 15. Price List (PCMRP n.d.b).
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VII. Other facilities
Figure 16. Other facilities in the warehouse (Adapted from Generatorwarehouse n.d., LinKa n.d.,
Parks 2017, Stanpro 2017)
VIII. Future growth

As for now, the storage area to the right will be dedicated to third-party services. Storage
facilities and warehousing activities will also be provided to ensure proper storage conditions
for the handbags and avoid misconduct from irrelevant resources. Depending on the rate of
consumption, the warehousing service will be charged correspondingly. Fast-moving
consumer goods will require the long-term commitment and be charged $2-3/ton - profiting
by service frequency, while slow-moving products will be charged $30-40/cbm/month. For
future expansion, this area, totaling 450 square meters, will be assembled to expand SKU.
IX. Conclusion
In conclusion, the complete design of Maiado’s warehouse has been illustrated throughout
this report. The main goal of Maiado is to provide not only effective logistics but also value-
added services to increase profitability and enhance the customer experience.
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X. References
Alibaba n.d., Automated strapping machine, Alibaba, viewed 4 January 2021,
<https://www.alibaba.com/trade/search?
fsb=y&IndexArea=product_en&CatId=&SearchText=Automated+strapping+machine+&viewtype=&
tab=>.
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fsb=y&IndexArea=product_en&CatId=&SearchText=double+deep+racking+system>.
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fsb=y&IndexArea=product_en&CatId=&SearchText=barcode+handle+reader>.
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fsb=y&IndexArea=product_en&CatId=&SearchText=Pallet&viewtype=&tab=>.
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fsb=y&IndexArea=product_en&CatId=&SearchText=pallet+wrapping+machine>.
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fsb=y&IndexArea=product_en&CatId=&SearchText=RF+Handheld+Scanner+&viewtype=&tab=>.
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solutions, viewed 4 January 2021, <https://www.ar-racking.com/en/storage-systems/industrial-
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Chothuexuong, viewed 24 December 2020, <http://www.chothuexuong.com.vn/en/News/to-attract-
investors-industrial-zones-need-to-enhance-their-quality/>.
Bastian Solutions n.d., RF Handheld Scanners, Bastian Solutions, viewed 26 December 2020,
<https://www.bastiansolutions.com/solutions/service/supply-chain-software/warehouse-management-
system/rf-handheld-scanners/>.
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Productions and Operations Management Society, vol. 23, no. 5, pp. 893-906, viewed 30 December
2020, Wiley database.
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DMS Company, Inc n.d., pcMRP - DMS Company, DMS Company, Inc, viewed 2 January 2021,
<https://www.dmscoinc.com/manufacturing-software/pcmrp/>.
Hiep Phuoc n.d., Overall and subdivision, Hiep Phuoc, viewed 2 January 2021,
<https://www.hiepphuoc.com/en/vitri/Overall-and-subdivision.html>.
ISHN 2018, ‘Reinventing fire detection in industrial warehouses’, Industrial Safety & Hygiene News,
20 December, viewed 10 January 2021, <https://www.ishn.com/articles/109985-reinventing-fire-
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docking Warehouse’, Computers & Industrial Engineering, vol. 138, pp. 106-108.
Raymond 2020, Automated pallet truck, Raymond, viewed 26 December

2020,<https://www.raymondcorp.com/forklifts/automated-lift-trucks/3010-raymond-courier-
automated-pallet-truck>.
Raymond 2020, Counterbalanced lift truck, Raymond, viewed 28 December 2020,

<https://www.raymondcorp.com/forklifts/counterbalanced-trucks/4460-sit-down-forklift>.
Raymond 2020, Deep-Reach Truck, Raymond, viewed 27 December 2020,

<https://www.raymondcorp.com/forklifts/reach-fork-trucks/7000-deep-reach>.
Machines4u n.d., Electric pallet truck, Machines4u, viewed 6 January 2021,

<https://www.machines4u.com.au/search/electric+pallet+truck/>.
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<https://www.raymondcorp.com/forklifts/pallet-trucks/8410-pallet-truck>.
Machines4u n.d., Automated pallet truck, Machines4u, viewed 6 January 2021,

<https://www.machines4u.com.au/search/Automated+pallet+truck/>.
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<https://www.machines4u.com.au/search/Counterbalanced+Lift+Truck/>.
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PCMRP n.d.b, Price List, PCMRP, viewed 2 January 2021, <https://pcmrp.com/pricing.htm>.
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Prosquare n.d., Hiep Phuoc Industrial Park, Prosquare, viewed 24 December 2020,
<http://www.prosquare.com.vn/en/hiep-phuoc-industrial-park>.
Qiu, L, Liang, X & Huang, Z 2017, ‘PATL: A RFID Tag Localization Based on Phased Array
Antenna’, Scientific Reports, vol. 7, no. 1, pp. 44183.
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SROA n.d., ‘How to Prepare Leather for Long Term Storage’, Storage Rentals of America, viewed 10
January 2021, <https://www.shdlogistics.com/workplace-wellbeing/avoiding-falls-height-warehouse
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%20Temperature%20and%20Humidity%20for,the%20humidity%20is%20too%20high>
Van Gils, T,; Ramaekers, K., Braekers, K., Depaire, B. & Caris, A 2018, ‘Increasing order picking
efficiency by integrating storage, batching, zone picking, and routing policy decisions’, International
Journal of Production Economics, vol. 197, p.243-261.
XI. Appendices
Figure 17. 5 boxes per pallet in the receiving area
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Figure 18. The double deep racking system
Figure 19. Raymond deep reach truck 7500
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Figure 20. Raymond Pallet Jack 8410
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Figure 21. Raymond courier 3010
Figure 22. Raymond Sit Down forklift 4460
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Figure 23. The empty pallets in the warehouse
Figure 24. The U-shaped belt conveyor
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Figure 25. The pallet wrapping machine
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lOMoARcPSD|9691613
Figure 26. Radio Frequency Scanner
Figure 27. Handheld Barcode Reader
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Figure 28. The automated strapping machine (Alibaba n.d.)
Figure 29. The 2D Warehouse Layout
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Contribution Form
Student name Student number Percentage of Student Signature
Contribution
out of 100%
Van Tue Nghi s3777212 20%
Tran Phuong Thao s3777217 20%
Nguyen Le Quynh Mai s3756902 20%
Nguyen Thi Quynh Hoa s3817860 20%
Nguyen Phan Thuc Anh s3804800 20%
32

Warehouse Design 1

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lOMoARcPSD|9691613

Warehouse Design Nguyen Thi Quynh Hoa s3817860

Warehouse Management (Royal Melbourne Institute of Technology University Vietnam)

StuDocu is not sponsored or endorsed by any college or university

RMIT University Vietnam

WORD COUNT: 3120

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8. Bulk consolidation by pallet wrapping machines to avoid the collision, damage,

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II. General information

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Figure 1. Subdivision Locations of HIPC

2.1 Product Assortments

Figure 2. SKUs List

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2.3 Inventory Management

Figure 3. ABC categories

2.4 Value-added services

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III. Warehouse layout & operation:

Figure 4. The warehouse layout

There are 216,000 items in storage area (Figure 5).

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Figure 5. The number of products stored in each zone

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Figure 7. Warehouse Product Inspection System (NEC n.d.)

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Figure 8. Quality Control Specifications

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3.1 Order picking

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3.3 Cross docking

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4.1 Defective products

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Figure 10. Defect classification list (Adapted from Kohl’s 2008)

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4.2 Products of full value

Figure 11. Reverse Logistics flow

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Equipment Description Quantity Price

Storage system Double deep - Accomplish higher stocking density, 10 $109,038

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various weight or quantity

Automated pallet - Maximize workforce’s efficiency and 1 $86,538

Counterbalanced - Suitable for tasks in trailers, ramps and 1 $17307

Other equipments Pallets (Figure 23) - 15 boxes/ pallet 1440 $20,063

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Pallet Wrapping - Customize the wrapping type and wrap 2 $339

RF Handheld - Give confirmation of receipts against 8 $2547

Handheld barcode - Used to support RFID when the codes 2 $238

Automated - Used for strapping boxes tightly 2 $1797

Figure 14. Equipment used in warehouse

VI. Operating system

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Figure 15. Price List (PCMRP n.d.b).

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VII. Other facilities

VIII. Future growth

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