Question

You work for a third party logistics (3PL) company that is expanding its business to serve online customers of high-tech consumer electronics goods such as PCs, laptops, tablets, computer and IT accessories. The 3PL intends to build a new e-commerce fulfilment centre. This facility has to cater to large volumes of small orders of consumer electronics items. You have been tasked to design a layout for a facility with the following characteristics:

• Floor plan: 60m x 110m
• Floor-to-ceiling height: 11m
• 8 loading/unloading bays

(a) Analyse various warehouse layouts (for example, U-shape, I-shape, and L-shape) to determine which one is most suitable to this warehouse. Sketch your warehouse layout and give reasons to support your decisions.
[The write-up part of your answer should not exceed 200 words.]

(b) Based on the layout type you proposed in Q2(a), examine the warehouse layout by generating a schematic layout of this facility. You need not come up with the architectural plans, but you should estimate the main areas of the warehouse. State any assumptions used and give reasons to support your answer.
[The write-up part of your answer should not exceed 300 words.]
(c) Discuss the feasibility of using a reach truck in this warehouse and provide arguments for your decision. What additional types of handling equipment could be appropriate for this warehouse?
[The write-up part of your answer should not exceed 200 words.]

Answer 1

A U-shaped warehouse layout is proposed for a 3PL e-commerce fulfilment centre, with areas estimated for receiving, storage, picking, packing, and shipping. A reach truck is recommended due to its suitability for high bay storage, and additional equipment like electric pallet jacks and conveyors would complement the operations.

Step-by-step explanation:

For a 3PL company planning to build an e-commerce fulfilment centre, a U-shaped warehouse layout is most suitable due to its efficiency in processing large volumes of small orders. The U-shape layout streamlines the movement of goods from the receiving area directly through storage and then to the picking and packing stations, finally leading to the shipping area, all without unnecessary backtracking. An estimation of the main areas within a 60m x 110m floor plan might include areas for receiving, storage, picking and packing, quality control, and shipping, arranged to reduce the travel time and handling of goods.

The high 11m ceiling allows for vertical storage solutions. Assumptions may include the use of standard pallets and the need for a high product turnover rate, influencing the density and accessibility of storage solutions.

In terms of equipment, a reach truck is feasible due to the high racks utilization. It is compact and suitable for narrow aisle operations, thus maximizing space efficiency. Additional handling equipment may include electric pallet jacks and conveyors for horizontal movement, and order pickers for item-level handling.