Overview
RayDesks was contracted by Marathon Investments, Incorporated to determine logistics and material handling needs for the manufacturing of an ergonomic desk riser. All recommendations are based on research and calculations done by the Logistics and Material Handling Analyst. Order quantity, frequency, delivery schedule and delivery method were all determined based on economic order quantity. All equipment needed for storage and transportation of materials was also determined as well as storage areas for materials and finished goods. Material personnel needed to facilitate and assist all material handling needs. Details and information regarding all recommendations by RayDesks can be found below.
RayDesks was contracted by Marathon Investments, Incorporated to determine logistics and material handling needs for the manufacturing of an ergonomic desk riser. All recommendations are based on research and calculations done by the Logistics and Material Handling Analyst. Order quantity, frequency, delivery schedule and delivery method were all determined based on economic order quantity. All equipment needed for storage and transportation of materials was also determined as well as storage areas for materials and finished goods. Material personnel needed to facilitate and assist all material handling needs. Details and information regarding all recommendations by RayDesks can be found below.
Order Quantity and Frequency for Raw Materials and Purchased Parts
The Economic Order Quantity equation was used as a starting point to determine Order Quantity and frequency of materials and purchased parts. This value was changed to an actual order quantity, Q*, that is based on minimal order quantities and lower order frequencies. Order frequency was also determined by dividing the yearly demand for each raw material and purchased parts by Q*. Order Frequency shown below is expressed as how many times a year the quantity needs to be ordered. Delivery schedule was based on order frequency, and delivery method was based on information from suppliers and assumptions based on size, shape, and weight.
The Economic Order Quantity equation was used as a starting point to determine Order Quantity and frequency of materials and purchased parts. This value was changed to an actual order quantity, Q*, that is based on minimal order quantities and lower order frequencies. Order frequency was also determined by dividing the yearly demand for each raw material and purchased parts by Q*. Order Frequency shown below is expressed as how many times a year the quantity needs to be ordered. Delivery schedule was based on order frequency, and delivery method was based on information from suppliers and assumptions based on size, shape, and weight.
Economic Order Quantity Equation
Raw Materials Order Quantity and Frequency
Purchased Parts Order Quantity and Frequency
Raw Materials and Purchased Parts Delivery Schedule and Method
Delivery schedule was based on order frequency, and delivery method was based on information from suppliers and assumptions based on size, shape, and weight.
Delivery schedule was based on order frequency, and delivery method was based on information from suppliers and assumptions based on size, shape, and weight.
Raw Materials Delivery Method and Schedule
Purchased Parts Delivery Method and Schedule
Receiving and Shipping
Based on the number of materials being received on a weekly basis, it is recommended that two docks are utilized for handling receiving and shipping needs. One dock will be receiving, and one dock will be shipping. Based on year five's production of 195,000 desk risers, it is estimated that 39,000 desk risers will be made weekly to meet demand. Based on demand and unit load, a truck will be needed to ship finished products to retailers. Using a unit load of 16 and a 40” x 48” stackable pallet, 52 pallets containing 832 desk risers can fit on one 53’ truck. It is estimated that 235 shipments need to be made yearly to meet demand.
Based on the number of materials being received on a weekly basis, it is recommended that two docks are utilized for handling receiving and shipping needs. One dock will be receiving, and one dock will be shipping. Based on year five's production of 195,000 desk risers, it is estimated that 39,000 desk risers will be made weekly to meet demand. Based on demand and unit load, a truck will be needed to ship finished products to retailers. Using a unit load of 16 and a 40” x 48” stackable pallet, 52 pallets containing 832 desk risers can fit on one 53’ truck. It is estimated that 235 shipments need to be made yearly to meet demand.
Material Handling Equipment
For raw materials and purchased parts that arrive on pallets, those will be used as a vessel for storage. Vertical bar racks and a slab rack will be used for storage of metal tubes, rods, and sheets. All extra inventory of hardware that is not on workstations will be stored in a shelf bin organizer. For Work in Process (WIP), it is recommended that bins be used at fabrication and assembly stations that have shorter standard and processing times. Equipment needed to move materials throughout the facility include pallet jacks, forklifts, and panel trucks. Additional unit load packaging includes an automatic stretch wrap machine and stretch film.
For raw materials and purchased parts that arrive on pallets, those will be used as a vessel for storage. Vertical bar racks and a slab rack will be used for storage of metal tubes, rods, and sheets. All extra inventory of hardware that is not on workstations will be stored in a shelf bin organizer. For Work in Process (WIP), it is recommended that bins be used at fabrication and assembly stations that have shorter standard and processing times. Equipment needed to move materials throughout the facility include pallet jacks, forklifts, and panel trucks. Additional unit load packaging includes an automatic stretch wrap machine and stretch film.
Unit Load
RayDesks recommends a unit load of 16 finished products per pallet. The pallets recommended for use are supplied by ULINE, the dimensions are 40” x 48” with a load capacity of 1,500 pounds. With the finished product dimensions being 36” x 21” x 7.5,” it is recommended that eight boxes be laid horizontally with the width being 36” and the length being 21” allowing stability within the unit load and proper clearance for forklift operator. The unit load recommended by RayDesks would be at a height of five feet allowing forklift operators to safely operate forklifts with proper clearance and allowing operators to safely stack finished goods onto the pallets. Based on a unit load of 16 and a year five demand of 195,000 units, it is recommended that 12,190 pallets are purchased because Uline sells pallets in the quantity of ten. With a unit cost of $28, the total cost for pallets would be $341,320.
RayDesks recommends a unit load of 16 finished products per pallet. The pallets recommended for use are supplied by ULINE, the dimensions are 40” x 48” with a load capacity of 1,500 pounds. With the finished product dimensions being 36” x 21” x 7.5,” it is recommended that eight boxes be laid horizontally with the width being 36” and the length being 21” allowing stability within the unit load and proper clearance for forklift operator. The unit load recommended by RayDesks would be at a height of five feet allowing forklift operators to safely operate forklifts with proper clearance and allowing operators to safely stack finished goods onto the pallets. Based on a unit load of 16 and a year five demand of 195,000 units, it is recommended that 12,190 pallets are purchased because Uline sells pallets in the quantity of ten. With a unit cost of $28, the total cost for pallets would be $341,320.
Material Handling Costs
The projected cost of the entire material handling design is broken down into two components: capital costs and annual expenses. Capital costs are purchases that will be made in the beginning year of production and will be used until year five. Annual expenses are expenses that will occur every year to meet yearly demand. The total capital cost is $88,079.07. The total annual expenses are $346,568.
The projected cost of the entire material handling design is broken down into two components: capital costs and annual expenses. Capital costs are purchases that will be made in the beginning year of production and will be used until year five. Annual expenses are expenses that will occur every year to meet yearly demand. The total capital cost is $88,079.07. The total annual expenses are $346,568.