Operational Metrics Analysis and ASRS Sizing for Company-A's Warehouse

Assignment Task

Situation

• Company-A plans to move their warehouse to a new location, and wants to introduce Rapyuta-ASRS.
• Items: miscellaneous goods
• Ship-to: stores (BtoB)
• Current operation
  • Picking:
    • Manual picking with carts.
    • Total picking by batch. (This means that if the item is in the same picking batch, the pickers can pick the same item for several stores in one container.)
    • Batch is a combination of orders. In this scenario, batch is determined by the shipping destination. Ex. Batch 1 consists of the orders for the stores in the north area, Batch 2 for south area, etc.
    • The normal operational hour is 7 hours.
  • Sorting
    • After picking is completed, the picked items will be feeded to a piece sorting system. Piece sorting system will then automatically sort the items to the container which will be dispatched to each store.
  • Picking Productivity
    • 90 picking/Manhour

• Planned new operation
  • Total picking by batch using ASRS
  • With ASRS, pickers can pick several units of one kind of SKU for each picking action. (ex. First picking instruction is 5 pieces item A, 2nd is 3 pieces item B, 3rd is 1 piece of item C, etc.)
  • Piece sortering system will be used after picking (same as current).

• Received Data
  • Stock inventory data for almost 1 month
  • Shipping data for 1 month
  • Item master

• Basic information about Rapyuta ASRS
  • Bin(=container) size: 600mm(w)*400mm(l)*500mm(h)
  • Expected productivity
    • Picking: 400 picking/Manhour (=picking/station for one hour)

1. Calculate the 14 operational metrics below, and estimate the 2 necessary ASRS sizing metrics required to fulfill the operation. (# : number of)

Operational Metrics (per day)

• Stock(max)
  • volume(m3)
  • # pieces
  • # SKU
  • piece/SKU
• Stock(avg)
  • volume(m3)
  • # pieces
  • # SKU
  • piece/SKU
• Shipping(max)
  • # pieces
  • # picking
  • piece/picking
• Shipping(avg)
  • # pieces
  • # picking
  • piece/picking

definition of metrics

• volume(m3) : total volume of all the items
• # pieces : total number of units of all the items
• # SKU : total kinds of items
• piece/SKU : the average piece number of each item (The piece/SKU = 10 means that there’s 10 pieces per each item in average.)
• # picking : the number of picking action (One action is to pick items of one orderline from the stock BIN and put them to the shipping BIN)
• piece/picking : The average piece number handled per picking action (The piece/picking = 2 means that a picker picks 2 pieces per each item in average)

• ASRS sizing
  • # BINs necessary for stock
    • # BIN calculation can be done with liquid based volume, regardless of the item shape.
    • Max fill ratio should be set to 70% of BIN for the buffer
      • Ex) In a 120L-BIN, 84 of 10*10*10cm-item can be stored.
    • A BIN can be divided into multiple slots using a partition. Following is the existing combination of slots in a bin
      • 1x1: Full BIN (= 1slot/BIN)
      • 1x2: 2 slots of 300(w)*400(l)*500(h)
      • 2x2: 4 slots of 300(w)*200(l)*500(h)
    • Do not mix multiple SKUs in one slot
    • You can use multiple BINs for the same SKU if it’s too many to be put in one BIN.
    • In this test you can ignore weight limitation
    • # BIN for shipping or temporary use is not the target of this question.

• # picking stations of ASRS
  • As the reference video shows, one picker works for each station.

2. If company-A doesn’t have the piece sorting system and wants to pick by each order (= this means that a picker should pick the same item of the different order to the different container), will the ASRS sizing you proposed in the above question be different? How would it change if yes? Why do you think so?

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