Developing the First Phase of Warehouse Storage Design in High-Mix, Low-Volume or Service-Centric Organizations

Conventional warehouse design techniques are tailored for mass production environments. Applying them to a warehouse in a high production mix, low production volume or service- centric operation does not yield expected space and part handling efficiencies. The first phase of design in a warehouse needs to address two key issues viz. the elimination of obsolete parts and storage management of required parts. This thesis develops methodologies to address each of these issues by creating a standardized obsolete part elimination guideline and a comprehensive Class Based Storage (CBS) policy respectively. The standard guideline uses a combination of survey data collection and swim lane mapping technique to create a part excessing Standard Operating Procedure (SOP). The storage policy uses a multi-variable CBS and a standardized bin selection method, both of which are incorporated in a Plan For Each Part (PFEP) database. The application of these two methodologies ensures the right part at the right place in a warehouse. Each methodology is implemented in a suitable warehouse in Tennessee.