1. MATERIAL HANDLING STUDENT DESIGN
COMPETITION
Facility Planning
JARRETT WALDEN
INDRA POUDEL
SANTOSH PAUDEL
UKESH CHAWAL

2. INTRODUCTION/OBJECTIVE
ABC, Inc. currently operates a chain of 200 retail
stores across the US. Its product line is home
electronics like cameras, laptops, tablets, mobiles,
video games. ABC, Inc. currently services its stores
from 2 distribution center campuses, one services the
Eastern US and the other the Western US.
The objective of this project is to redesign the picking
process of ABC, Inc. to support changes in the
ordering profiles of the “clients” of their distribution
centers.

3. PAIN POINTS
 The Western DC doesn’t have enough space.
 No task interleaving capabilities.
 Rush orders cannot be added on the fly to store
waves.
 Lead-time of replenishment orders to stores can take
up to 10 days. New small stores want overnight
deliveries.
 If a worker identifies a problem with a location, the
system cannot put the location on-hold.
 Repack volume has significantly increased.
 Too many work around workflows required.
 Sortation.

4. DESCRIPTION OF OPTIONS CONSIDERED
Pick to Light (PTL)
Pick to light is the visual technology that enhances
high speed of picking with high accuracy. The light
display identifies the pick and the header display
unit indicates pick quantity. The operator typically
pushes a button on the light display to confirm the
pick task. After all picks are completed pass
indicator illuminate picker ID. This picker ID is
submissively captured with Watch Me device.

5. WHY PTL IS BEST
Voice RF PTL
Pick Productivity in High Density Areas 2 2 3
Freedom to use both hands 3 1 3
Ability to get directions 2 2 3
Providing completion information 2 3 3
Initial system "training" 1 3 3
Dependence on selector's memory 1 3 3
Last-steps identification of next location 1 2 3
Battery replacement 1 1 3

6. TEAM ASSUMPTIONS
 For every 2500 SKUs, total number of
operators needed = 25
 For every 2500 SKUs, the cost of installation
of PTL system = $250,000
 For every SKU, total income = $250

7. FINANCIAL SUMMARY
Year Initial SKUs # of Employees Income
2014 40,700 SKUs 34 $10,175,000
2015 53,590 SKUs 45 $13,397,500
2016 78,830 SKUs 67 $19,707,500
2017 130,300 SKUs 110 $32,575,000
2018 181,077 SKUs 152 $45,269,250
2019 483,870 SKUs 407 $120,967,500

8. CALCULATION
• Initial time spent for picking with Voice = 6 minutes per
SKU
• Time spent for picking with PTL = 5 minutes per SKU
• Time saved per SKU(in percentage) = 16.67%
New Total SKU Shipped with PTLYear SKUs Income
2014 47,619 $11,904,750
2015 62,700 $15,675,000
2016 92,231 $23,057,750
2017 152,451 $38,112,750
2018 211,860 $52,965,000
2019 566,127 $141,531,750

9. CALCULATION CONTD…
Expenditure = labor cost + operating cost
Given, Labor cost per hour = $21.35
Year Expenditure Profit from voice Profit from PTL
2014 $7,995,667 $2,179,333 $3,909,083
2015 $6,484,736 $6,912,764 $9,190,264
2016 $10,259,873 $9,447,627 $12,797,877
2017 $17,847,688 $14,727,312 $20,265,062
2018 $22,627,741 $22,641,509 $30,337,259
2019 $77,271,845 $43,695,655 $64,259,905

10. PROCESS FLOW
Receiving
Putaway
Allocation
Picking
Eaches Full Case
Shipping
Sorter

11. Building A
Supplier
Shipped as
Eaches Picking
Building B
Labeled for Put
away
Labeled for Put
away
Shipped as Full
Case Picking
Operator Preps
Item
Operator Preps
Item
Sent to FPL or
reserve locations
Sent to FPL or
reserve locations
Receiving
Putaway

12. Is it demand larger than
product case quantity ?
Ready for picking
Start finding cases
to fill a pallet
Ready for picking
Ready for picking
Ready for picking
Did FPL run out of stock
today?
Start picking full
cases
Allocation
NO NOYES YES

13. Eaches Picking Full Case Picking
Workers Push
totes and gather
order
requirements
Workers take totes
to a takeaway
conveyor
Conveyor takes
Orders to the
shipping sorter
Can it be put on
totes or conveyed
Put on a pallet and
transported to
shipping area by
vehicle
Put on a conveyor
Conveyor goes to
shipping sorter
Picking
NO YES

14. MODIFIED CAD LAYOUT FOR THE
RECOMMENDED OPTION.

15. CONCLUSION
Thus, PTL is the best system because the
profit from PTL system is higher than that from
Voice system.
Year Net Profit
(PTL Profit – Voice Profit)
2014 $1,729,750
2015 $2,277,500
2016 $3,350,250
2017 $5,537,750
2018 $7,695,750
2019 $20,564,250

16. REFERENCES
http://www.cornerstoneautosys.co.uk/pick-to-light.htm
http://www.idii.com/wp/AdsCompare.pdf
http://www.mwpvl.com/html/order_pick_technologies.
html