Warehouse Configuration with Contextual Considerations in a Distribution Centre for Perishable Goods: A design science study of a Swedish distributor in the wholesale sector

Abstract

Problem Statement: Company Pie is planning for a new centralised distribution
centre, as part of a reorganisation of their distribution network. This entails consolidating volumes from several existing facilities, and another company named Company Rho, when setting up a distribution centre configuration. Company Pie wants a second set of eyes to create a configuration, including operations, and design and recourses, for the new distribution centre.

Purpose: The purpose of this thesis is to design a new warehouse configuration for Company Pie's centralised facility for perishable goods, considering accurate contextual factors.

Research Objectives: To fulfil the purpose, the first objective is to describe the current the warehouse configuration of Company Pie’s existing warehouses. The second objective is to identify the contextual factors influencing the new distribution centre. The third and final objective is to develop a configuration for the new distribution centre.

Methodology: The study was conducted by following the design science research methodology. Fist, a literature review with three main areas, contextual considerations, warehouse configuration, and perishable goods warehouse was conducted. Then data was collected through interviews, observations, and through data extraction from information systems. The collected data was then analysed to identify configurational elements, which were combined in an artefact of the new distribution centre configuration.

Conclusion: Firstly, the current state of Company Pie was described, arriving at the conclusion that Company Pie and Rho are organisationally similar, and that the new distribution centre is considerably larger than the existing distribution centres. The second objective of identifying contextual factors
revealed that the consolidation of the two companies results in changes in foremost product- and order characteristic, demand profile and assortment. Through analysis this led to the final objective of determining configurational elements. The new distribution centre utilises family grouping to store
product and zone picking to perform the picking process.

Popular Abstract

It might seem straightforward to configure a distribution centre but, in fact, it demands resilience and ingenuity. In an environment with stringent customer demands, thousands of products, and a constant flow of unique orders,
there is little room for standardisation.

To answer these questions, literature suggests that the distribution centre’s surrounding environment should be considered. Adapting a configuration to suit specific circumstances can enhance overall performance, while failing to do so may lead to reduced performance. So, from this we understand that every distribution centre operates in a unique environment, meaning that each configuration should therefore also be unique.

• author: Alsterberg, Michaela and Holmqvist, Emma
• supervisor: Andreas Norrman
• organization: Production Management; Engineering Logistics
• course: MTTM05 20241
• year: 2024
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: Warehousing, Warehouse Configuration, Warehouse Design, Distribution Centre, Contextual factors, Perishable Goods
• other publication id: 6023
• language: English
• id: 9164955
• date added to LUP: 2024-09-04 13:50:24
• date last changed: 2024-09-04 13:50:24