Group In-Class Exercise

Distribution Centre Design


  1. This is a group In-Class assignment, which will be assessed
    (8%). In your group, you are required to produce a distribution
    centre design to accommodate the following detailed scenario.


  • Sector – Retail
  • Operating hours – 2 shifts, 8 hours a day Mon-Fri, 6.30am –
  • Volumes – relatively constant, seasonal 20% peaks in Apr/May
    and Oct/Nov.
  • Growth – 5% per annum.
  • Design timeline – 5 years
  • Products – 5,000 SKU’s
    • 60% Palletized.
      • Each SKU has 1 pick location and an average 5
        replenishment/storage locations.
      • Each pallet is ‘Standard US’ (40 inch x 48 inch) built 48
        inches high.
    • 30% Shelving. Each SKU has an average dimension of
      12 inch x18 inch x10 inch and an average quantity holding of 20
      items, no replenishment locations.
    • 10% Bulk. Each SKU has an average dimension of 5
      foot x 6 foot x 8 foot and an average quantity of 4 items, no
      replenishment locations.
  • Storage:
    • Racking – 5 levels high, 96 inch bay width (2 pallets), and
      depth is 42 inch with 8 inch gap between back-to-back
      racking. Assume 200 foot lengths of racking and 13 foot aisle
    • Shelving – 10 foot high, 48 inch deep, configurable
      shelves. Assume 4 foot walkways between back to back shelving
      units. Assume 50 foot lengths of shelving
  • Office Requirements – 20,000 sq/ft (Management, HR, Clerical,
  • Ceilings – 40 foot clear
  • Aisle widths – 13 foot
  • Walkway widths – 4 foot

  • Mechanical Handling Equipment:
    • Pump Jacks – 10
    • Single pallet Walkies – 20
    • Double pallet Walkies 10
    • Forklift Trucks – 15
  • Other space considerations:
  • Battery Changing
  • Maintenance
  • Returns/Inspection area
  • Security
  • Janitorial
  • Staff Changing Rooms
  • Washrooms
  • Cafeteria
  • IT
  • Forklift and MHE parking
  • Cardboard compactor
  • Plastic wrap compactor
  • Trash


  1. Submit soft copy to Brightspace (D2L – Warehouse Design AICE)
    by 11.59pm Fri 1 Oct 2021, the report is to be formatted in Excel,
    use cells to indicate scale. Expectations are that the report
    will provide answers to the fundamental questions:
  1. What is the square footage storage requirements for: Racking,
    Shelving, and Bulk.
  2. How many square feet does the DC need to be to accommodate
    peaks and annual growth over the 5 year design timeline; the
    estimated space requirements for Racking, Shelving, and Bulk should
    be provided (only consider the actual space for storage, not the
    walkways and aisles). i.e. what is the expected storage
    percentage of a typical DC?
  3. A DC plan showing the layout of the DC to scale with racking,
    shelving, and other requirements clearly shown with some commentary
    on why they have been allocated that space.

Please ensure all group members are
identified on the first page with SAIT registration numbers.
Standard grading rubric for SCM Case Analysis applies.

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