1. Optimize Warehouse Layout and Distribution Center Processes
Goodwill Distribution Center
Team 1, IE 4390 Spring 2015
Chandler Franklin, Alonso Garcia, Juan Garcia, and Kristen Kramer
Faculty Advisor: Dr. Novoa
Industry Advisor: Kelly Freeman

2. Project Goals 1. Improve Operations Efficiency
2. Live Inventory Tracking
3. Optimize Traffic Logistics
4. Optimize Dock Processes and Material Handling

3. Operations Efficiency

4. Logistics 16 Hour Working Days
Truck Arrival Every 2 Hours, Fully loaded
Boxes Tilted Into Table
900 tables/day Average Outlet Store Throughput
Capacity 200 tables inside Outlet Store at once
Left over material is sorted in Categories and stored in boxes in inventory until shipping
Workers split into teams, complete tasks randomly

5. Process Constraints (Obtained from live time studies and industry advisors)

6. Arena Full Model

7. Model Assumptions
One Month Worth of Manifest Data Used To Determine Box Size used percentages and amount of each type of material percentages.
No Worker Downtime, No Machine Downtime

8. Simulation Report
Longest Queues Formed at Tilters and Unloading Processes
Caused by Outlet Store capacity

9. Simulation Report Average 891 Tables/Day Outlet Store Throughput
Resembles Distribution Center Characteristics

10. Average Time In System
With 95% confidence, the average time spent per box in the system before stored in inventory is between 8.9 and 10.7 hours.

11. Improvement
Tables spend from 30 minutes to 2 hours maximum inside outlet store depending on material quality & popularity.
Decrease in Average Time Spent in System by 9%
C.I. 8.3 hours to 9.7 hours spent in system

12. Cost Analysis Cost per Box decreased by $0.15
Cumulative savings up to $ after 30 days

13. Recommendations
Change the times tables spend inside retail store to 30 minutes for lower quality or less popular Materials.
Keep a maximum of 2 hours for higher quality or more popular material types.
Perform a study inside retail store to identify material popularity.
Outcomes:
Lower Average time spent in system per box
Decrease processing costs
Potential Increase in Sales inside retail store

14. Facility and Docking Layout

15. Docking Recommendations
Implement cross-docking
Prioritize trash and recycling processes
Loading of trucks should be done with intent to unload (by category of inventory and/or container).
Divide docks into groups of four; alternate designation of loading/unloading trucks every four docking stations.

16. Facility Layout
Plastic, Nestable, and metal pallets should be implemented if they are cost-effective.
Loose items can be secured using recycled materials, and loose cases can be secured onto pallets to eliminate inventory damage.
Items should be stored by ‘popularity’.
Storage depth should range from 2 to 3 depending on the items’ popularity.

17. Inventory Tracking System
Wasp Inventory control
$800-$5600
Stock added, removed, transferred, checked in or out, cost of inventory, inventory aging, transaction history, etc.
Notification alerts when stock is low, ensuring that needed inventory is available on hand.

18. Truck Routing VRP solver used to find route trends
Sort Manifest data by end location and find trends using Arena Input Analyzer. Use random number generator on Minitab to find random value in data fit.
Use google maps to create from/to chart of each distance
Use longitude and latitude in order to create a reference point for the GRC to the locations

19. Groupings found Dripping Springs Kyle Buda San Marcos Georgetown
Georgetown
Round Rock
Wells Branch
Pflugerville
Sometimes Hutto, Norwood, & Scofield with that group.
Bee Caves
Marble Falls
Fredericksburg
always alone
Riverplace
Cypress Band
Balcones
Southpark Meadow
Brodie
Oak Hill
Marbridge Hut
Bastrop
Elgin
Shadow Glen
Airport
10th Street
Sometimes Lakeway
Lakeway
Lake Austin
Westbank only ever paired with South Lamar
South Lamar never alone, always changing groupings

20. Routing Recommendations
Goodwill should download VRP solver in order to plan routes based off demand ordered by the locations
Drivers should fill out an excel sheet of items on manifest in order to find volume used.
Goodwill can use this data to simulate different routes to prepare for the future.

21. Boxplot Time Interval Key
Traffic Trends
The GPS information we received allowed us to create boxplots to show trends in the times it takes to travel to the various locations.
The plots are sorted by location from, location to, and time interval
Boxplot Time Interval Key
Times
Interval
5:00 am - 7:00 am 1
7:00 am - 9:00 am 2
9:00 am - 11:00 am 3
11:00 am - 1:00 pm 4
1:00 pm - 3:00 pm 5
3:00 pm - 5:00 pm 6
7:00 pm - 9:00 pm 7
5:00 pm - 7:00 pm 8

22. Traffic Trends
Location from
Location to
5:00-7:00 am
7:00-9:00 am
9:00-11:00 am
11:00-1:00 pm
1:00-3:00 pm
3:00-5:00 pm
5:00-7:00 pm
7:00-9:00 pm
10th Street
GRC
Airport
Balcones
Bastrop
Bee Caves
North Lamar
Riverside
Brodie
Cedar Park
Chimney Corners
Cypress Bend
Round Rock
Dripping Springs
Fredericksburg
Georgetown
Elgin
Hutto
Kyle
Lake Austin
Lakeway
Macfarlane
Marble Falls
New Hope
North Star
Norwood
Oak Hill
Parmer
Pflugerville
Location from
Location to
5:00-7:00 am
7:00-9:00 am
9:00-11:00 am
11:00-1:00 pm
1:00-3:00 pm
3:00-5:00 pm
5:00-7:00 pm
7:00-9:00 pm
GRC
Riverplace
Riverside
Round Rock
San Marcos
Scofield
Shadow Glen
South Lamar
Southpark Meadow
Wells Branch
West Bank
Hutto
Kyle
Chimney Corners
Lake Austin
Lakeway
Macfarlane
Marble Falls
Marbridge
New Hope
North Lamar
North Star
Airport
Norwood
Oak Hill
Parmer
Pflugerville
10th Street
These charts show the different trends in traffic during the shown time intervals.

23. Acknowledgements
This project is sponsored by Goodwill Industries with help from the following people:
Leslie Bailey-Smith, LCSW Internship Program Coordinator
Joseph Hnatow, Logistics Manager
Ryan Schlickeisen, Inventory Analyst
Kelly Freeman, Sustainability Director
Allan Whitley, Sr. Director