Proposing an Operational Logic for the New Warehouse

Abstract

This thesis focuses on developing a new warehouse operational logic for the case company. In accordance to its growth strategy, the case company is realigning its warehouse and operations to allow expansion, as well as continuous improvement to meet future customer demands. This study was initiated by the case company in order to adapt to the changing demand of increased customer service and tougher competition. This study started by reviewing relevant literature related to designing operational logic of a warehouse. Based on literature review, a conceptual framework was constructed, which serves as a guide for the design of a new warehouse for the case company. The study conducted the current state analysis of the warehouse operational logic in the case company. Based on existing knowledge and the results of the current state analysis, a proposal for the new warehouse was drawn. Finally, the developed proposal was improved with the key stakeholders to construct the final proposal for the new warehouse. The main goal of this thesis is to establish a framework for designing an operational logic for the warehouse. It consists of three interrelated categories, namely space and layout planning, storage system, and order picking system. Each category has its own distinct guidelines that links to the next category. In the proposal, the steps were formulated to guide and determine key factors in all three categories – the space and layout planning, choice of storage system, and the application of a picking system – for designing the operational logic for the new warehouse. This proposal intends to assist the case company in taking an analytical and logical approach to identify its operational logic in warehouse design. By providing the steps in the design process, the case company increases its ability to decide on the appropriate selection of warehouse operational logic.