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Warehouse layout in factory distribution
2002 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This thesis discusses the development of a warehouse layout for the Factory distribution operation at Philips Lighting Distribution in Oss, the Netherlands. Additionally, a comprehensive theoretical study was included, on which the result of the research is based on. The warehouse layout for the factory distribution relate to the receiving, storage and shipping operation of production material and finished product. For the purpose of optimize the operations performance, the different operations were initially studied separately. Subsequently the overall operation performance of the layout was considered. The research shows that a substantial cost reduction can be gained from implementing strategies and policies that correspond to the material- and order characteristics. Furthermore, re-direct certain material flow has been shown to generate significant travel distance reduction and consequently efficiency improvement. For the receiving operation, the main improvement originates from implementing a scheduled delivery program, making the workload more distributed over the day. Accordingly, the staffing of this operation can be easier planned and the queuing of goods can be minimized. The quality of the operation can also be enhanced by a more structured layout separating the different material flows facilitating an optimized routing where resources can be optimally allocated. In conclusion, the research shows that the financial performance of the receiving operation, regarding production material and finished product, incorporate a 49, respective 7 percent efficiency improvement possibility. The performance of the storage operation is primarily dependent on the travel distance required for the order-picking and replenishment and the handling utilized in the picking. The research has shown that significant reductions regarding the travel distance can be gained by implementing a stock location assignment strategy based on popularity of the different materials. Furthermore, a forward-reserve system bringing about a minimal pick frequency from high locations leads to considerable efficiency increase. The conclusion regarding the storage operation is that a cost reduction equal to 17 percent of Philips Lighting Distribution’s total cost for the storage operation can be realized. The last possibility to ensure a high customer satisfaction is the shipping operation as this is the connection between the manufacturing and the customers. This means that the performance should be measured according to Philips Lighting Distribution’s possibility to get the products to the customers at time and in right condition and amount. The performance can consequently be guaranteed by more structured layout, which has been shown in the research. Financially, an improvement equal to 25 percent of the shipping operation cost can be achieved.

Place, publisher, year, edition, pages
2002.
Keyword [en]
Technology, Logistik, Warehousing, Distribution, Material Handling, Logistics
Keyword [sv]
Teknik
Identifiers
URN: urn:nbn:se:ltu:diva-52012ISRN: LTU-EX--02/089--SELocal ID: 92b3124c-585c-43ef-94ee-8346f0cceefbOAI: oai:DiVA.org:ltu-52012DiVA, id: diva2:1025378
Subject / course
Student thesis, at least 30 credits
Educational program
Industrial and Management Engineering, master's level
Examiners
Note
Validerat; 20101217 (root)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf