ime 331 presentation.pptx
TRANSCRIPT
+
IME331 - Optimizing Material Handling System Costs Case StudyTeam D: Randall Chua, Matthew Tjahjadi, John Chia, Adrian Nuñez
+Agenda
■Abstract
■Requirements■ Alternative 1: Automated System■ Alternative 2: Conventional System■ Alternative 3: Conventional System in a Leased
Facility
■Choose Alternative
■Conclusion
+Abstract
■In this case study, THREE competing warehouse designs have been presented.
■All the results are based on ■Time Analysis■Economic Analysis■Layout Analysis ■Sensitivity Analysis.
+Requirements
■Total Weekly Product Flow = i=1nPi = 2399 units
■Total Weekly Inventory = i=1nPi×Ii = 2399 units
■Pi – Average Pallet flow per week of each product
■Ii – Inventory level of each product
+Alternative 1: Automated System■ Number of grids = 2399 pallets/8 pallets high= 300 grids
■ AGVS throughput : 5 pallets/hour/AGV
■ AS/RS system using AGVS
Figure 1: AS/RS system Figure 2: AGVS system
+Alternative 1: Automated System
■ Required throughput =
(2399)/(24hr×7day×0.90) = 15.87 ≈16 pallet/hr./machine
■ There is work efficiency 1-0.10 = 90%
■ There are three layout alternatives for storage:■ Interval one :22 x 14 pallets■ Interval two : 6 x 50 pallets ■ Interval three : 4 x 75 pallets
■ Number of AGV = (2399)/(24hr×7day×5 pallets/hr./AGV×0.9) = 3.17 ≈4
+Option 1
■ Total Area = 14,700 ft2
■ Supplied Throughout = 22 pallets/hr./machine
Number of S/R Machine:
16/22 = 0.72 which is
approximately one
140 feet
105 feet
+Option 2 (Chosen)
■ Total Area = 12,600 ft2
■ Supplied Throughout = 19 pallets/hr./machine
■ Number of S/R Machine: 16/19 = 0.84 which is approximately one
280 feet
45 feet
+
■ Total Area = 12,150 ft2
■ Supplied Throughout = 15 pallets/hr./machine
■ Number of S/R Machine: 16/15= 1.06 which is approximately two
Option 3
405 feet
30 feet
+ Total Cost
Category Cost Total CostSpace $25/square ft. * 12,600ft2 *
(1+0.15)$388,125
AGV $40,000 x 4 machine $160,000S/R Machine $100,000 x 1 machine $100,000
AS/RS Computer $600,000 $600,000Grand Total $1,353,125
Category Cost Total CostOperator Wages $9 * 5 operators * 24/hour *
360 days$ 388,800
Overhead and Support Cost
$11,344 * 12 months $136,128
Grand Total $524,928
Initial Cost
Annual Cost
+NPV Analysis
Year First cost Annual cost Saving Total cost
1 0 0
2 -1,353,125 -1,353,125
3 -524,928 1,000,000 475,072
4 -524,928 1,000,000 475,072
5 -524,928 1,000,000 475,072
6 -524,928 1,000,000 475,072
7 -524,928 1,000,000 475,072
8 -524,928 1,000,000 475,072
9 -524,928 1,000,000 475,072
10 -524,928 1,000,000 475,072
NPV(25%IRR) = $146,142
+Alternative 2: Conventional System
Number of grids = 2400 pallets/3 pallets high = 800 grids
Number of Rows: (800 grids)/(8 grids per row) = 100 rows
Figure 3: Forklift Truck Figure 4: Roller Track Storage
+Requirements
Max # of rows in each array: 12(12 rows per array)*(9 arrays)=108 rows
Pickup/Deposit Time = 0.003hr./occurrence ×2399 pallets = 7.2 hr
Travel time = 167.3 hr
Time required = 7.2 + 167.3 = 174.5 hr
Time supplied = 24hr. ×7day×0.9 = 151.2 hr
Number of forklift = 174.5hr/151.2 hr = 1.15 = 2
+Design
11 ft
15 ft
15 ft 11 ft
Total Area: 39,904 ft2
+ Total Cost
Category Cost Total Cost
Space $35×39,904 ft2 ×(1+20%) $1,675,968
Forklift 2*$22000 $44,000
Flow Track Storage $300×800 grid $240,000
Grand Total $1,959,968
Category Cost Total Cost
Operator Wages $9×(5+2)×24hr×360day $544,320
Overhead/Support Cost $8086/mo*12 mo $97,032
Grand Total $641,352
Initial Cost
Annual Cost
+NPW Analysis
Year First cost Annual cost Saving Total cost
1 -1,959,968 -1959968
2 -641,352 1,000,000 358,648
3 -641,352 1,000,000 358,648
4 -641,352 1,000,000 358,648
5 -641,352 1,000,000 358,648
6 -641,352 1,000,000 358,648
7 -641,352 1,000,000 358,648
8 -641,352 1,000,000 358,648
9 -641,352 1,000,000 358,648
10 -641,352 1,000,000 358,648
NPV = -$574,339
+Alternative 3: Conventional System with Leased Facility
Number of Square Array = 2400 Pallets/(8x12) = 25 = 5x5
+Requirements
Pickup/Deposit Time = 0.003hr./occurrence ×2399 pallets = 7.2hr
Travel time = 365.2 hr
Time required = 7.2 + 365.2 = 372.4 hr
Time supplied = 24hr. ×7day×0.9 = 151.2 hr
Number of forklift = 372.4hr/151.2 hr = 2.46 = 3
+Design 102,476 square feet
+ Total CostInitial Cost
Annual Cost
Category Cost Total Cost
Forklift $22,000*3 $66,000
Flow Track Storage $300 x 2400 grid $720,000
Leased Hold Improvement $300,000 $300,000
Grand Total $1,086,,000
Category Cost Total Cost
Operator Wages $9 x (5+3) x 24 hr x 360 days
$622,080
Overhead/Support Costs $6,937 x 12 mo. $83,244
Grand Total $705,324
+Year First Cost Annual Cost Rent Saving Total Cost
1 -1,086,000 -691,450 -361,920 1,000,000 -933,870
2 -705,324 -387,254 1,000,000 -92,578
3 -705,324 -414,362 1,000,000 -119,686
4 -705,324 -443,368 1,000,000 -148,692
5 -705,324 -474,403 1,000,000 -179,727
6 -705,324 -507,612 1,000,000 -212,936
7 -705,324 -543,144 1,000,000 -248,468
8 -705,324 -581,164 1,000,000 -286,488
9 -705,324 -621,846 1,000,000 -327,170
10 -705,324 -665,375 1,000,000 -370,699
NPV = -$1,878,106
NPW Analysis
+Conclusion
■ Choose Option 1 - Automated System■ Based on our NPV analysis of 3 different
options.