This document provides a warehouse design and layout project for storing 20 different products across 3 categories. It includes calculations for space needed in receiving, shipping, picking, sorting, and bulk storage areas. The receiving area is designed to hold one day of incoming goods. The shipping area is designed to hold 1.5 days of goods. The picking area holds one full day of product for each SKU. The sorting area holds one hour of goods. Bulk storage holds the calculated safety stock levels. The total proposed warehouse area is 74,600 square feet based on the layout and space calculations provided.

1. 1
WAREHOUSE
DESIGN & LAYOUT
PROJECT 3
BY: SAURABH PATIL
PRATEEK MISHRA
ABHISHEK BOLIMERA

2. 2
INDEX:
LIST OF DIAGRAM:
SR.NO. CONTENT PAGE NO.
1. Introduction 1
2. Warehouse Operations 2
3. Product Description 3
4. Calculations 4
5. Layout 9
6. Racking Arrangements 10
7. Costing 15
8. Assumptions 17
DIAGRAM NO. TITLE PAGE NO.
1. Warehouse Layout 1
2. Plant layout 9
3. Pallet Live Racking 10
4. Fork Lift 10
5. Double Deep Racking 11
6. Reach Truck 12
7. Narrow Aisle Racking 13
8. Narrow Aisle Truck 13
9. Cost Analysis 16

3. 3
LIST OF TABLE:
TABLE NO. TITLE PAGE NO.
1. List of Products 3
2. Pallet requirement 4
3. Demand analysis 5
4. Pallet Calculation for Receiving Area 5
5. Pallet Calculation for Shipping Dock 6
6. Pallet Calculation for Picking Area 7
7. Pallet Calculation of Sorting Area 8
8. Pallet Calculation for Bulk Storage 8
9. Plant Layout 9
10. Forklift description 10
11. Reach Truck Description 12
12. Narrow Aisle Truck Description 14
13. Warehouse Leasing Cost 15
14. Racking Cost 15
15. Equipment Cost 15
16. Indirect Cost 16
17. Total Cost 16

4. 1
1. INTRODUCTION:
Warehouses are commercial building for storage of goods. Warehouses are used by
manufactures, importers, exporters, wholesalers, transport businesses, customs etc.
It is important to understand the design of a warehouse for smooth flow of operations
like loading, unloading of goods, movement of goods within warehouse and their
storage in their respective place. The dimensions and characteristics of the
warehouse infrastructure are important and must be accurate. They are important for
the design of shelves, to calculate the capacity of the installations and the distribution
of the goods inside the warehouse. There are various things which need to be
considered access, floors, windows, columns, boxes, lines and power lines.
Buildings regulations, design according to weather and location should be studied
properly.
Diagram1: Warehouse layout

5. 2
2. WAREHOUSE OPERATIONS:
Operation of warehouse depends upon the type of industry and the products stored.
 Receiving: It starts with advance shipping notification before arrival of goods
(ASN). It helps in planning proper unloading of products which helps in
completing rest of operations faster.
 Storage: It is one of the major activities of the warehouse. Products are
divided according to their category and then stored in their respective places.
 Order Picking: When a customer order is received, a checking process should
be performed to verify that the products are available for the customer. Then
a picking list guide is produced to help the pickers in their activities.
 Packing and shipping: Products are packed and then they are ready to be
shipped. Packing is preferred near the out area as product can get damaged if
more movement is done.
 Pallet storage and Racking: Pallet storage systems are considered while
designing warehouse. Pallet is a frame on to which goods are loaded in bulk.

6. 3
3. PRODUCT DESCRIPTION:
This particular warehouse deals with 20 different products. There are 5
different items that fall into the ‘A’ category, 5 products that falls under the ‘B’
category and 10 products in ‘C’ category. The names of the individual products
along with their demands are listed in the below table.
SR. NO. SKU CATEGORY DEMAND / MONTH DSI
1 Kit Kat A1 1 Million 15 Days
2 Mars A2 1 Million 15 Days
3 3 Musketeers A3 1 Million 15 Days
4 Milky way bar A4 1 Million 15 Days
5 Baby Ruth A5 1 Million 15 Days
6 Nestle Butterfinger B1 300 K 30 Days
7 Hershey bar B2 300 K 30 Days
8 Cadbury chocolate B3 300 K 30 Days
9 Almond joy B4 300 K 30 Days
10 Bounty B5 300 K 30 Days
11 Galaxy C1 50 K 60 Days
12 Hershey’s C2 50 K 60 Days
13 Reggie bar C3 50 K 60 Days
14 Snickers C4 50 K 60 Days
15 Sky bar C5 50 K 60 Days
16 Toblerone C6 50 K 60 Days
17 Twix C7 50 K 60 Days
18 Uno C8 50 K 60 Days
19 Zero bar C9 50 K 60 Days
20 Welch’s fudge C10 50K 60 Days
Table 1: List of products

7. 4
4. CALCULATION
4.1 CALCULATIONS OF SIZE OF EACH PRODUCT:
 Pallet Size: 48*40*4.5” (Taking U.S. Standard Pallet)
 Carton Size: 16*8*10” (This will account for 100% Utilization of the
pallet)
 Size of product A, B & C: 8*4*8” (Same size for all three products)
 Catron’s per pallets = Pallet size/ Carton size
= (48*40*60) / (16*8*10)
= 90 carton/pallets
 Item’s per carton = Carton size/ Item size
= (16*8*10) / (8*4*8)
= 5 items/carton
 Item’s per pallet = Pallet size/ Item size
= (48*40*60) / (8*4*8)
= 450 items/pallet
Number of pallets for demand:
Table 2: Pallet requirements
Total demand = No. of items * Demand
Pallets required = Total demand/450(items/pallet)
No. OF
ITEMS
DEMAND
TOTAL
DEMAND
PALLETS
REQUIRED
PRODUCT A 5 1000000 5000000 11112
PRODUCT B 5 300000 1500000 3334
PRODUCT C 10 50000 500000 2223

8. 5
4.2 INVENTORY CALCULATIONS:
 Inventory in days for the items
o A items: 15 days
o B items: 30 days
o C items: 60 days
DEMAND
STORAGE
DAYS
ACTUAL
DEMAND
SAFETY
STOCK
DEMAND
WITH SS
FINAL
DEMAND
PRODUCTS
A
5000000 15
5000000/2=
2500000
10% 250000
2500000+250000
= 2750000
PRODUCTS
B
1500000 30 1500000 20% 300000
1500000+300000
= 1800000
PRODUCTS
C
5000000 60
5000000*2=
1000000
30% 300000
1000000+300000
= 1300000
Table 3: Demand analysis
Actual demand = Demand*number of months
Demand with safety stock = Actual demand*Safety Stock
Final Demand = Demand+ Demand with safety stock
4.3 CALCULATION FOR RECEIVING DOCK:
The receiving dock is designed to hold one day of incoming goods and can be
block stacked 2 Pallets high. The assumption is that the pallets would be moved into
bulk storage area within this time frame. Since the pallets contain the same product,
we can safely assume that we utilize 100% of the pallet space.
DEMAND
DAILY DEMAND
(Demand/30Days)
PALLETS NEEDED
(Demand/450)
PRODUCTS A 5000000 166667 371
PRODUCTS B 1500000 50000 112
PRODUCTS C 500000 16667 38
TOTAL 512
Table 4: Pallet calculation for receiving area

9. 6
Pallet Needed = Demand/(Items/Pallets)
512 Pallets are needed in the receiving dock.
With the reference
(http://www.spartanwarehouse.com/warehouse-space-calculator) we can calculate
the total area needed for the Receiving Deck.
 We get 4267 Sq. ft. with 80%Utilization.
4.4 CALCULATION FOR SHIPPING DOCK:
The Shipping dock (Dispatch Area) is designed to hold 1.5days worth of
goods, within this timeframe the goods will be loaded onto an outgoing truck. Since
the pallets are essentially mixed, they cannot be safely stacked over each other. Thus,
we assume a 70% cubic efficiency on each of these outgoing pallets.
Demand
Daily Demand
(Demand/30Days)
Demand for 1.5day
(Daily demand*1.5)
Pallets needed
(Demand/315)
PRODUCTS A 5000000 166667 250000 794
PRODUCTS B 1500000 50000 75000 238
PRODUCTS C 500000 16667 25000 80
TOTAL 1112
Table 5: Pallet calculation for shipping dock
Pallet Needed = Demand/(Items/Pallets)
(As the cubic efficiency is only 70%, we would consider it to be 450 instead of 315
i.e. 70% of 450 is 315)
We require 1112 pallets in shipping docks
With the reference
(http://www.spartanwarehouse.com/warehouse-space-calculator) we can calculate
the total area needed for the Shipping Deck.
 Thus, we get 18533 Sq. ft. for 80% space utilization
Pallet efficiency is 70% as these pallets cannot be stacked to 100% since they are
made up of mixed product and would not stack safely.

10. 7
4.5 CALCULATION FOR PICKING AREA:
The picking area will be loaded at the end of each day with 1 full day of product for
each of the 20 SKUs sold. This product will be in full pallets, any partial pallets left
in the picking area at day’s end will remain there.
DEMAND
DAILY DEMAND
(DEMAND/30DAYS)
PALLETS NEEDED
(DEMAND/450)
PRODUCTS A 5000000 166667 371
PRODUCTS B 1500000 50000 112
PRODUCTS C 500000 16667 38
TOTAL 512
Table 6: Pallet calculation for picking area
Pallet Needed = Demand/(Items/Pallets)
512 Pallets are needed in the receiving dock.
With the reference
(http://www.spartanwarehouse.com/warehouse-space-calculator) we can calculate
the total area needed for the Shipping Deck.
 Thus, we get 8533 Sq. ft. for 80% space utilization
 Thus, to give some leeway for products left over from previous days picking,
we calculate the picking area to be of 8600 sq.-ft.
4.7 CALCULATION OF SORTATION AREA:
The sortation area is designed to hold 1 hour worth of goods, and the space
utilization is just 10% of the actual foot print of the product. This is because there
are a number of packaging equipment’s which takes up floor space. Here the pallets
are sorted; stretch wrapped, labelled and is sent to the correct dock so that it can be
loaded onto an outgoing truck.

11. 8
DAILY
DEMAND
(Demand/30Days)
DEMAND/HOUR
(Demand/16)
PALLETS
NEEDED
(Demand/450)
PRODUCTS A 166667 10417 23
PRODUCTS B 50000 3125 7
CPRODUCTS 16667 1042 3
TOTAL 33
Table 7: Pallets calculation for sorting area
Thus, we get 860 Sq. Ft for 10% utilization as these pallets cannot be stacked to 100
%since they are made up of mixed product and would not stack safely.
4.8 CALCULATIONS FOR BULK STORAGE:
DEMAND
SAFETY
STOCK
DEMAND
WITH SS
ITEMS/
PALLET
NO. OF
PALLETS
AREA
(sq. ft.)
PRODUCT A 2500000 1.1 2750000 450 5556 21166
PRODUCT B 1500000 1.2 1800000 450 3334 12693
PRODUCT C 1000000 1.3 1300000 450 2223 8469
TOTAL 11113 42328
Table 8: Pallets calculation for bulk storage
 Total number of pallets required are 11113 and the area is 42328 with 70%
efficiency.

12. 9
5. LAYOUT
Following the final layout of the warehouse. Minor adjustments have been done to
the shape so that the layout looks for practical implementations.
SR.
NO.
TYPE OF AREA
DIMENSIONS
(L*B)
TOTAL
AREA
(SQ. FT.)
PERCENTAGE
1 Receiving Dock 160*26 4267 5.72%
2 Shipping Dock 200*80 18533 24.84%
3 Picking Area 240*45 8600 11.53%
4 Sorting Area 85*10 860 1.15%
5 Bulk Storage Area 350*120 42328 56.76%
TOTAL 470*160 74600 100%
Table 9: Plant layout
Thus, Total Area of the Warehouse according to the layout will be: 470*160=74600
sq. ft.
Diagram 2: Plant layout

13. 10
6. RACKING ARRANGEMENT
FOR PRODUCT A:
Racking System: Live Pallet Racking
Diagram 3: Live pallet racking Diagram 4:Fork lift
The bulk storage of product A is going to comprise of 278 columns containing 20
pallets each. Let assume 8.5 ft. between each or these sections. Now let’s assume
0.5 ft. between each of the columns for the supporting structure of the racking.
 Advantages of Pallet Live Racking
o Enables perfect pallet turnover (FIFO SYSTEM).
o Maximum capacity as storage system is compact.
o Time and space saved in pallet handling.
 Picking equipment: Counter Balanced Fork Lift
We chose to employ counter balanced forklift to undertake operation on live
pallet racking. Since the forklift will be operating inside the warehouse so to keep
the emissions inside the warehouse limited it is advisable to operate an electric
counter balanced forklift.
Table10: Forklift description
Manufacturer Toyota
Model 7FBEST10
Capacity 1 – 1.5 tons
Type of Drive Electric
Overall Length 2365 mm
Overall Width 990 mm
Turning Radius 1230 mm
Cost $16,033

14. 11
The racking system we are implementing for Product A bulk storage is Live Pallet
Racking and we are stacking 5 pallets high. Using these conditions, we have
calculated that dimensions of the Product A bulk storage should be 300 ft. long and
70 ft. wide which would occupy 2100 sq. ft. of area which is well within the allocated
area of 21166 sq. ft. for Product A bulk storage
o Length = 300 ft.
o Width = 70 ft.
o Height = 5 pallets
o Area = L*B = 300 * 70 = 21000 sq. ft.
FOR PRODUCT B:
Racking System: Double Deep Racking
Diagram 5: Double deep racking
 Advantages of Double Deep Racking
o Increased storage capacity compared with Selective Racking
o Medium to low storage system.
o Can increase pallet storage by as much as 10-15% depending on racking
layout.

15. 12
 Picking Equipment: Reach Truck
To operate on a double deep racking the forklift needs to reach inward towards to
racking to store or pick a pallet that is stored against the, hence we need to employ
a reach truck and again to minimize the emissions inside the warehouse we need to
employ an electric forklift.
Diagram 6: Reach truck
Manufacturer Toyota
Model 8BDRY15
Capacity 3 – 3.5 tons
Type of Drive Electric
Overall Length 2200 mm
Overall Width 1023 mm
Turning Radius 1158 mm
Cost $36,000
Table11: Reach truck description
The racking system we are implementing for Product B bulk storage is Double Deep
Racking and we are stacking 5 pallets high. Using these conditions, we have
calculated that dimensions of the Product B bulk storage should be 210 ft. long and
60 ft. wide which would occupy 12600 sq. ft. of area which is well within the
allocated area of 12693 sq. ft. for Product B bulk storage.
o Length = 210 ft.
o Width = 60 ft.
o Height = 5 pallets
o Area = L*B = 210 * 60 = 12600 sq. ft.

16. 13
FOR PRODUCT C:
Racking System: Narrow Aisle Racking
Diagram 7: Narrow Aisle racking
 Advantages of Narrow Aisle racking
o Less floor area for aisle
o FIFO inventory management
o Design Flexibility
o Immediate access to every pallet.
Diagram 8: Narrow aisle truck

17. 14
The isles of powered mobile racking are too narrow for a common counter balanced
forklift to access, hence a narrow aisle truck needs to employed.
Manufacturer Toyota
Model BTVECTOR
Capacity 1.25 – 1.5 tons
Type of Drive Electric
Overall Length 1700 mm
Overall Width 1430 mm
Turning Radius 1023 mm
Cost $15,000
Table 12: Narrow aisle truck description
The racking system we are implementing for Product C bulk storage is Narrow Aisle
Racking and we are stacking 5 pallets high. Using these conditions, we have
calculated that dimensions of the Product C bulk storage should be 286 ft. long and
29 ft. wide which would occupy 8294 sq. ft. of area which is well within the allocated
area of 8469 sq. ft. for Product C bulk storage
o Length = 300 ft.
o Width = 70 ft.
o Height = 5 pallets
o Area = L*B = 300 * 70 = 2100 sq. ft.

18. 15
7. COSTING:
Costing of the warehouse is done on annual basis. Warehouse construction cost is
taken and all the direct and indirect cost have been included.
COST OF WAREHOUSE:
UTILITY
COST/sq. ft.
($)
TOTAL AREA
(Sq. ft.)
TOTAL COST
($)
Warehouse 60 74600 4476000
Table 13: Leasing cost
COST OF RACKING:
PRODUCT TYPE OF RACKING
COST/RACK
($)
TOTAL
RACKS
COST OF
RACKING
($)
A Flow Rack 100 556 55600
B Double-Deep Racking 70 150 10500
C Narrow aisle Racking 50 150 7500
TOTAL 73600
Table 14: Racking cost
Cost of equipment:
TYPE OF
RACKING
EQUIPMENT
COST OF
EQUIPMENT
($)
NUMBER OF
EQUIPMENTS
TOTAL
COST
($)
Flow Rack
Counter Balanced
fork lift
17000 2 34000
Double-Deep
Racking
Electric fork lift 36000 1 36000
Narrow aisle
Racking
Narrow aisle
truck
15000 2 30000
TOTAL 100000
Table 15: Equipment cost

19. 16
INDIRECT COST:
UTILITY
COST/sq. ft.
($)
TOTAL AREA
(Sq. ft.)
TOTAL COST
($)
Electricity 0.24 74600 17904
Maintenance 0.15 74600 11190
Office equipment 0.1 74600 7460
Insurance 0.3 74600 22380
TOTAL 58934
Table 16: Indirect cost
TOTAL COST:
UTILITY COST ($)
Cost of warehouse 4476000
Cost of racking 73600
Cost of equipment 100000
Indirect cost 58934
TOTAL COST 4708534
Table 17: Total cost
Thus, the total cost of warehouse for a single year would be $729334.
Diagram 9: Cost representation diagram
4476000, 95%
73600, 2%
100000, 2%58934, 1%
COST ANALYSIS
Warehouse
Racking
Equipments
Indirect cost

20. 17
NOTE: Cost is taken warehouse electricity, equipment etc. is from google
8. ASSUMPTIONS:
o One material picking equipment of each kind is sufficient for handling the
volume of goods.
o The warehouse is located in a corner such that it is feasible to locate two dock
doors on either side of the warehouse.
o We ignore the weight constraints associated with the product.
o We do not calculate costs for dock doors, offices or employee lounges.
o We assume that products are stored linearly, there is no application of random
storage in this warehouse.