Facilities designing project in industrial engineering major
Introduction:
Fresh Food (FFN) serves as one of the largest food vendors. It’s existent warehouse is 120K sq feet and holds a thousand inventory SKUs ranging such as dry stock and
alcohol, etc. Moreover, this distribution facility serves a large part of frozen and lower volume specialty items.
FFN overall business has continued to grow rapidly in the past ten years. Thus, a new facility is required to revert the occupancy level to a manageable situation
since the existing facility is heading toward reaching its full capacity. Due to that issue the company is being affected in the near future. The facility is not going
to be manageable when it is in that level of capacity. That leads to affect the customers as well.
Problem statments:
FFN has reached its capacity with 95% occupancy thus forcing operation to run inefficiently and with little bandwidth to accommodate customers. In addition, there is
an expected 5.5% annually steady growth through 2034 based on forecasting by FFN. Thus, directions on how to run the existing warehouse are needed when the new
facility is in full operation.
Our objective in this project is to design the rack system for the new facility that would make the best of the available space and lead to more efficiency. For that,
we need to utilize the data set of SKUs in the old facility to be able to determine which SKU’s can be move to the new facility.
