1. Racking In The Foodservice Warehouse W. Frank Dell CMC President DELLMART & Company 125 Hardesty Road Stamford, CT 06903

2. Agenda n INTRODUCTION n RACKING OPTIONS n MECHANIZATION OPTIONS n EQUIPMENT OPTIONS n DESIGN ISSUES n SUMMARY DELLMART & COMPANY MANAGEMENT CONSULTANTS

3. Objectives n Explore different types of racking or storage mediums n Understand the advantages and disadvantages of each type n Review the supporting equipment

4. Warehouse Design Rational Include n Store Capacity n Selection Slots n Labor Productivity n Through-Put

5. Terminology For Warehouse Processes n Inbound l Receiving l Put-Away n Outbound l Replenishment l Selection l Loading

6. Procurement’s Impact On Warehouse Requirements n Storage Capacity n Selection Slots n Receiving Doors & Dock Space n Storage Type

7. Pallet Size Should Be Determined Jointly By Buying And Warehousing n Cycle Stock = Pallet Quantity n Pallet Quantity = n Ordering Concepts l Fixed Review l Just In Time 2 X Put Away Cost Holding Cost

8. Customer’s Impact On Warehouse Requirements n Sales Volume n Order Size n Pick Density n Number of Orders n Shipping Doors and Dock Space

9. Direct Labor Fundamentals n Every task has a fixed time component n Travel Standards l Walk l Ride l LIft n Case Handling Standards l Case l Cube l Weight

10. Agenda n INTRODUCTION n RACKING OPTIONS n MECHANIZATION OPTIONS n EQUIPMENT OPTIONS n DESIGN ISSUES n SUMMARY DELLMART & COMPANY MANAGEMENT CONSULTANTS

11. Floor Stack n Usage - Selection, reserve and bulk storage n Application l Large case cube l High velocity l Low roof Floor space utilization 2 Replenishment per 3 selection pallets Flexible deep Minimal capital cost Advantages Height restriction (Max. 3 pallets high) Product rotation Product damage Disadvantages

12. Single Deep One High Select n Usage - Selection floor slot with reserve overhead n Application l Large case cube l Fast seller Simple to manage Good height utilization Advantages Reduce slot cube utilization Disadvantages

13. Single Deep Two High Select n Usage - Selection floor slots with reserve overhead n Application l Medium cube and velocity l Small cube and high velocity Increase selection slots Increase selection density Reduce walk time Advantages Reduce cube utilization Disadvantages

14. Single Deep Three High Select n Usage - Selection floor slots with reserve overhead n Application l Small cube l Slow velocity Increase selection slots Increase selection density Reduce walk time Advantages Reduce cube utilization Reduce selection capacity Slower replenishment Disadvantages

15. Single Deep Hand Stack n Usage - Selection floor slot with no reserve storage n Application l Small cube l Very slow velocity l Broken case items Increase selection slots Increase selection density Reduce walk time Advantages Reduce cube utilization Reduce selection capacity Slower put-away Increase rotation problems Increase selection errors Disadvantages

16. Case Flow Rack n Usage - Selection with reserve in lane and bulk storage overhead n Application l Case cube less than 1 l Case velocity less than 11 High selection density Keeps family groups together Advantages Must be linked to buying Disadvantages

17. Double Deep One High Select n Usage - Selection floor slot with reserve overhead and behind n Application l Large case cube l Fast seller Good storage capacity Advantages Difficult to replenish and put-away Increase rotation problems Disadvantages

18. Drive in Rack n Usage - Selection floor slots with reserve overhead n Application l Large case cube l High Velocity l Buying restriction Multiple selection slots Maximum selection capacity Advantages Increase rotation problems Creates honey combing Disadvantages

19. Agenda n INTRODUCTION n RACKING OPTIONS n MECHANIZATION OPTIONS n EQUIPMENT OPTIONS n DESIGN ISSUES n SUMMARY DELLMART & COMPANY MANAGEMENT CONSULTANTS

20. Pick To Belt n Application l Medium size cases l Fast and medium velocity High selection rate Controlled walk Batch select Advantages Requires sorting step Must walk entire system Non-conveyable cases Disadvantages

21. Carousel n Application l Smaller cases l Slow velocity Random selection Reduce travel Advantages Lose overhead storage Limitation on case size Slow replenishment Disadvantages

22. Cartrac n Application l Medium and large cases l High velocity with multi-carts Reduce travel Batch selection Advantages Lose overhead storage Difficult to replenish Disadvantages

23. Program Item Retrieval (PIR) n Application l Small and medium cases l Slow velocity Increase selection slots Random slots Batch select Advantages Require sorting step Machine paces travel Slower put-away Disadvantages

24. Agenda n INTRODUCTION n RACKING OPTIONS n MECHANIZATION OPTIONS n EQUIPMENT OPTIONS n DESIGN ISSUES n SUMMARY DELLMART & COMPANY MANAGEMENT CONSULTANTS

25. Fork Lifts n Counter balance - wide aisle n Straddle - narrow aisle n Stand-up versus ride

26. Fork Lift Attachments n Pallet forks n Slip sheet or push-pull n Clamp n Reach

27. Single Pallet Jack n Dock Jockey n Put-away into floor slot n Put-away transport n Selection

28. Double Pallet Jack (Long John) n Put-away transport n Selection l Single orders l Batch orders

29. Tugger n Carts or trucks n Radio control

30. Agenda n INTRODUCTION n RACKING OPTIONS n MECHANIZATION OPTIONS n EQUIPMENT OPTIONS n DESIGN ISSUES n SUMMARY DELLMART & COMPANY MANAGEMENT CONSULTANTS

31. Narrow Versus Wide Aisle n Less floor square feet n Greater cube utilization n Facilitates 2 side selection n Increases congestion and interference n Increases damage

32. Slot Column n Spacing l Maneuvering room l Product l Pallet l Bar n Bury columns n Number of slot types Product Rack Bar Pallet Rack Bar

33. Cross Bars n Pair weight n Adjustability

34. Height Versus Floor n Land cost n 24 foot rule

35. Slotting n Family grouping n Velocity n Customer orders n Density

36. Layout Check List n Dock space n Employee area and facilities n Battery charging area n Repair and maintenance area n Damage and return processing

37. Agenda n INTRODUCTION n RACKING OPTIONS n MECHANIZATION OPTIONS n EQUIPMENT OPTIONS n DESIGN ISSUES n SUMMARY DELLMART & COMPANY MANAGEMENT CONSULTANTS

38. Summary n Plan 5 years into the future n Rank design rationale n Test alternatives with labor models n Perform quarterly maintenance

39. Thank for Providing Slides Clark Crown Hi-Line Hyster Interlake Raymond SI Handling White Yale