Post on 10-Feb-2017
CLIENT BACKGROUND
Michael Cheng | Natasha Mamoun | Kanhai Patel | Jessica Podoloff | Ashish Sridhar | Indrajit Vishwanath | Rachael Weber | Ryan Youngblood | Faculty Advisor: Sebastian Pokutta
1-2 hr delivery
Barcode Inventory Management System
38 cities nationwide
~200,000 customers
PROBLEM DESCRIPTION Problem 1:
Problem 2:
Stowing protocol is hard to follow
Uninformative quality control process
This document has been created in the framework of a student design project, and the Georgia Institute of Technology does not sanction its content.
Potential accumulation of defects in high valued items
Lack of associate accountability
Inefficient use of space in bins & pallets
Inventory spillage onto adjacent pallets
BIN PACKING INVENTORY LAYOUT QUALITY CONTROL
PROJECT OBJECTIVES
FUTURE RECOMMENDATIONS
8.2% picking rate
55ft per route
PURPOSE: Use ABC results to improve space utilization
METHODOLOGY: 1. Applies first-fit heuristic to mirror stowing technique 2. Constraints: Maximum number of items, maximum
volume & “Golden Area” stowing
PURPOSE: Minimize the distance traveled during picking
METHODOLOGY 1. Locations ranked based on the distance from aisles’
midpoints to outbound area 2. Average distance to A < B < C
PURPOSE: Incorporate ABC into defect quality control checks
METHODOLOGY 1. Applies Monte-Carlo method to determine number of
locations to check & time 2. Number of hours spent on A > B > C
PURPOSE Identify highest valued items to develop inventory management guidelines
METHODOLOGY 1. Inventory is ranked by units sold and
categorized into velocity bands 2. Validates the Pareto Principle
1 Increase picking ratesImprove space utilizationIncrease labor efficiency
INVENTORY MANAGEMENT TOOL
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Current Potential
Facility Item Stowage Breakdown
Pallets Bins
Legend:
ABC ANALYSIS
23
Inventory Velocity Analysis
Total % of SKUs
% o
f Tot
al U
nits
Sold
A
B C
1
0
2
4
6
8
10
12
14
12 inch 9 inch 18 inch 24 inch Pallets
A class B class C class
Aisles Required Per Class
Num
ber o
f Aisl
es
12 inch 9 inch 18 inch 24 inch Pallets
Item Stowage Breakdown
Current Potential
15%
85%
4%
96%
VALU
E
1341 labor hours
0%
5%
10%
15%
20%
25%
A Defects B Defects C Defects
A Defects B Defects C Defects
16.41%
11.09%
7.98%
Percent Of Defects Per Class
• Final order quality checks • Use IMS to compare weights
• % of locations that follow 3 constraints • Determine a spot check threshold
• Determine which associates cause errors • Based on item size and incorrect stowing
MAGIC WALL WEIGHT STATION DAILY SPACE UTILIZATION METRIC VIRTUAL SPOT CHECKS
Increase picking rates
2Improve space utilization
3Increase labor efficiency
HEALTH & QUALITY CONTROL IMPROVING INVENTORY