Distribution 1 Final Assignment Param Singh Gill W22
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DHumber College Post Graduate Supply Chain Management Program
SCM 5000 Distribution One Transportation Assignment (Final Assignment)
Professor: Natalie Kotikova – Winter 2022
Instructions:
1.
Complete this assignment using
this file
.
Save the file “Distribution 1 Final Assignment
Your Name” prior to submission. Do not alter the font size, type, margins, or any other
formatting associated with this file.
2.
Upload this file
prior to the due date in Blackboard. Safe assign will be used to assist in
determining instances of plagiarism or the use of external resources.
3.
This is an
individual assignment
. Instances of group collaboration will result in academic
misconduct for each involved, and at minimum a zero on this assignment.
4.
Use
only
materials presented in this course (textbook readings, learning modules,
discussion boards, blackboard videos and live classes).
It is
not acceptable to use
external sources
in this assignment.
5.
There is
no prescribed word limit/length for this assignment
. As a guideline, consider a
750 to 1,000 words response a typical median
per challenge question
. At the post-
graduate level, you are expected to explain in sufficient detail your response. Your paper
is to be formatted in a full sentence discussion form, limiting the use of tables or bullet
points. Your ability to communicate and stay focused is important. Remember to spell
and grammar check your paper prior to submission. Grammatical and spelling mistakes
will reduce the overall confidence of your report. Each challenge is worth equal weight.
6.
You must acknowledge and accept these instructions below
by indicating below that
you fully understand these instructions and agree to act in accordance with Humber
College’s student code of conduct and the specific requirements as described in the
above five points.
Please enter your full name:
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Please enter your Humber Student Number:
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Please indicate that you have reviewed the
above instructions carefully and that you
agree to abide by these requirements by
typing the words
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in this space:
I accept
1
The situation….
You have been hired by the company that you used for your Mid Term Assignment in Supply and
Demand 1 (Sedar Database Financial Records Assignment). If you are not enrolled in S&D 1 this
semester contact the instructor to determine a suitable organization.
The company has decided to build a single DC that will serve the entire Canadian Marketplace.
This will involve closing any existing DCs in Canada.
The site location has been chosen for you
and will be Bolton Ontario. A suitable sized plot of land has been purchased and this site will
only be served by road (no direct rail siding will exist).
Using the type of product your company
distributes (either from manufacturing itself or purchasing from an external firm) you will need
to design a distribution centre and make recommendations on specific areas of operations and
management. In each of the challenges you will be asked to make a recommendation and then
defend your recommendation based on your course learnings.
The recommendations you make must be based on you understanding the trade-offs that exist
based on your learnings in this course and you also should be prepared to justify any major
expenses (i.e. recommendation of significant automation should be well supported to justify its
cost). You will be assessed considering the level of thought and connection between your course
learnings, your subject company and the type of products that will flow through the DC. You will
need to make some reasonable assumptions based on a company’s volume and market stability.
For the purpose of this exercise consider your organization as stable within the industry (unless
you specifically know otherwise) and that current volumes are forecasted to be consistent for at
least five years. State any assumption that you require in the challenge they apply to.
2
Challenge 1. Describe Your Organization
Provide a brief background about the organization itself and the type of products that it will be
distributing through the new DC. Please provide basic information here on the volume of
product and value that are anticipated to flow through the DC.
Please use information from the
financial statements for the year that you used and make reasonable assumptions where
necessary.
The organisation that I chose for the Mid Term Assignment in Supply and Demand 1 is
“PlantXLife”
Inc. In this generation every human being wants a wholesome lifestyle. Overtime
from a choice it has become a necessity to maintain a healthy lifestyle as it helps build our
immunity which in turn protects us against various chronic noncommunicable diseases like
respiratory diseases, cancer, cardiac diseases, and many others. All of us have understood the
importance of immunity in the recent times as we witnessed the COVID-19 pandemic, at that
point of time it became crystal clear as to how important it is to maintain a healthy lifestyle.
During the new trend people are also shifting to a plant-based diet as it has many benefits to
offer than a normal diet such as: Improving brain health, decreasing chances of getting cancer,
helps in reducing and in some cases even reversing diabetes, and the best benefit is that it
promotes weight loss. Just sustaining on a healthy lifestyle is not the reason for shifting people
from a normal diet to plant-based diet but also increasing cruelty against animals is a major
force guiding this shift. I selected “PlantX Life Inc.” as their goal is to provide a healthy lifestyle
to the people through a series of products they offer. Portfolio of PlantX Life is huge as they
offer products in the category of groceries, beverages, wellness, meal delivery, pet food and
even household supplies. PlantX Life Inc. understood the trend going on as they know that in
such a busy schedule it devoids an individual of the time to do grocery shopping and then cook
for themselves. So PlantX Life is aiming on providing healthy lifestyle to everyone at their
doorstep whether it be their home or office. PlantX Life is huge when it comes to the size of the
organisation and this becomes evident from the fact that they are listed on global stock
exchanges such as CSE: VEGA, OTCQB: PLTXF, Frankfurt: WNT1 and many others. Till date $30
Million have been raised along with 5 acquisitions of companies namely: EH & Portfolio Coffee,
Bloombox Club, Locavore Bar and Grill, New Deli and Little West. When talking about revenues
their revenue growth was from 0% to $2 Million per month in one year. As of now they have 8
flagship locations in cities like Los Angeles, Chicago, Rideau, Plainfield, and others. The food
industry is a cutthroat market and therefore relations are very important to thrive in such a
market and that is why PlantX Life has established relationships with celebrity chefs and brand
ambassadors such as Matthew Kenney, Venus Williams, Justin Fields, and others. As of now
around 10,000 shareholders have put their trust in the vision of PlantX Life. Products are not
just listed on their online platform, but they are also listed at other establishments such as
Amazon, Walmart, and The Bay. In short PlantX Life is the one stop-shop for everything plant-
based.
3
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Challenge 2 – Receiving Procedures
Describe the product that will be received into the facility, including the modes of
transportation, unitization and packaging.
Then, provide a summary of the key receiving
procedures or processes you recommend be used to ensure this process is efficient and
effective. Include a description of any metrics that you consider important in managing the
receiving process.
Complete responses will focus on supporting recommendations for the receiving process and
how it will be managed. The only sources to be used for this discussion are those found in your
textbook, the course site, the course modules, and course discussion boards.
PlantX Life believes that the receiving process is the most crucial step in the field of operations.
As if anything goes wrong at this step then the mistake follows on till the end. Therefore, this
step-in operations is very crucial. PlantX Life is expecting to receive about 500 SKU’s including
beverages, wellness products, groceries and baby food from various vendors. Every week a
planned schedule is made which tells us about the number of containers arriving and quantity
of products as this helps the distribution centre to be prepared. The products arrive in full truck
loads of dry vans and reefers. Therefore, the distribution centre has been divided into two parts
one is refrigerated while the other is not. As some products need to be stored in a cold
environment. With the planned weekly schedule, the distribution centre staff will already tell
the driver the dock number where unloading will be done. Therefore, without wasting anytime
the driver can park at the particular dock number. As soon as the container arrives the receiving
process or the inbound process starts where firstly the seal of the container is checked against
the bill of lading. After that the container will be unloaded. Then our team at the distribution
centre will do a quick inspection to check if there is any physical damage to master pack,
secondary package or primary package and the type of packing depends on the type of product.
The distribution centre has a warehouse management system (WMS) such as SAP. The pallets
are received by using RFID and as soon as they are scanned it automatically updates the records
and also send notification on the RFID reader which the forklift driver always has with him. Then
the forklift driver can rack all these pallets up. This technology is directly connected with the
ERP software and because of this the WMS also gives us real time stock visibility and
traceability. This not only reduces the usage of paper but also improves customer service. We
have also kept two KPI for the purpose of measuring the receiving process. First is the time
taken from off-loading of a truck till the time taken to load the storage location. Second is the
arrival time of the inbound truck. They help in tracking the time taken, because if we are taking
too much time then we are losing on efficiency of our operations.
4
Challenge 3 – Materials Handling Equipment
Describe the major materials handling equipment that you recommend be installed or
purchased for the facility and support your recommendations. This response should include all
major forms of equipment including for example racking, mechanical equipment and
automation systems.
Complete responses will consider the trade-off analysis that occurs in making MHE decisions.
The only sources to be used for this discussion are those found in your textbook, the course site,
the course modules, and course discussion boards.
Efficiency and effectiveness are needed to make a world class supply chain model. There are
many components of a supply chain model that are required to make it efficient and one of the
components that play a major role is Material Handling Equipment’s (MHE). There are various
type of MHE which can range from storage & handling equipment to industrial trucks and
engineered systems. Material Handling Equipment (MHE) are equipment’s or machinery used
for the purpose of storing and moving the material from one area to another area of the facility.
When considering cycle-time we would need MHE which are easily maneuverable in narrow
passages as well and don’t take up too much space. Pallet trolley and forklifts are a perfect fit as
they can lift heavy weights and are easily maneuverable. They will make the warehouse
processes more effective and efficient. By reducing time in sorting and stacking and as a result
we get a very clean and organized warehouse, which will further affect our production process
by increasing its efficiency. Apart from the pallet trolly and forklifts we also need some
automated systems. These automated systems play a very substantial value in increasing the
efficiency of distribution centre, therefore in the distribution centre we would need an
engineered system of conveyor belts which would help in moving the pallets way faster. They
would also have a scanners installed in them and this would help in updating the quantity of
products stored in the storage facility. Moreover, we would also need stretch wrapper as we
want our shipments to be completely sealed pack. As we are dealing mostly with food products,
we need that our shipments should be packed properly, as even a small error in packing could
destroy the whole product. Apart from this in the docking stations we will have installed height
adjustment technology, so that it becomes easier for us to load and unload the trucks. We
would also conduct a maintenance check once a month on all our MHE’s as to make sure they
are all running smoothly. Because even if one MHE’s fails then this could affect the working of
the whole distribution centre.
5
Challenge 4 – Design a picking process
Design a picking process that includes consideration of an overall DC theory (GTP or PTG), the
type of picking (discrete, wave, batch, etc.), and any technology that you would recommend to
be used in the process. Also, provide any metrics that you would consider important to measure
long term to understand your picking performance.
Complete responses here will consider the type of product being picked and design and justify a
method of picking. Remember that you will need to justify investments in technology if you
recommend these. The only sources to be used for this discussion are those found in your
textbook, the course site, the course modules, and course discussion boards.
After the receiving is done and all the products are sorted and stored in their respective zones,
now it is time to start the outbound process which in layman’s language is known as the
shipping process. We will be following PTG which stands for person to goods. In this process the
picker will go to the location where the products are stored and will pick that particular order.
This is beneficial for a few reasons such as: it is effective while being inexpensive, moreover the
amount of workforce can be adjusted as per the requirement. For picking purpose we will be
using a combination of pallet trolley and forklifts as they are a perfect fit when maneuvering in
narrow passage. Moreover, to reduce usage of paper the picker will be using RF scanner to
check the product location and type. This not only saves time but also helps preserve the
environment.
We will be using the zone picking method even though it is a highly complex method as it
requires multiples session handling but in the case of PlantX Life the distribution center only has
2 zones. It will be easy to handle both the zones as we will be providing our work force with
radios and headsets, so that it is easy for them to communicate among each other while picking
orders in different zones. This in turn will help in reducing the crowd in both the zones as each
employee will be working in the zone allotted to him. When an order is received which requires
products stored in both the zones then the employees among themselves using radio network
can remain in contact with each other and when the orders are passed through the stretch
wrapper. Then in the end, when the product is ready to be shipped the same will be delivered
from one zone to the dock of another zone which is allotted for that delivery. The last outbound
step will be to create a bill of lading and manifest for the entire load and once the container is
completely full the same will be sealed using bands
6
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Challenge 5 – Safety
Discuss the importance of safety and any measures that you would consider important in the
management of your DC.
How does safety impact the decision you’ve recommended in
challenges 2, 3, and 4?
Complete responses here will consider the potential health and safety of persons (employees,
contractors, guests, etc.) and the environment. The only sources to be used for this discussion
are those found in your textbook, the course site, the course modules, and course discussion
boards.
Safety is very important to PlantX Life as each and every employee of the company is a member
of the family. Therefore, in the distribution centre it is the top priority. That is why a lot of safety
protocols have been made which have to be followed. It is the job of the supervisor on floor to
make sure that all the safety protocols are being followed. The topmost important protocol is to
make sure that the safety equipment is being used, while on other hand it is also very important
to eliminate all potential safety hazards such as crack in the floor or some wear and tear in the
machinery. Training is very important and that is once in a week a training will be conducted, as
it important for the workforce to be aware of their surroundings. Apart from conducting training
exercise for machinery it is also important to conduct educational lessons about hazards. Apart
from this we have also implementing the technique of awareness, as it is a set protocol that if a
forklift is passing by the driver should make other workers near him aware about that. We are
also fixed about the weight protocols as it is very important to follow the set guidelines. As
every machinery and pallet rack has a certain amount of weight it can hold, and this guideline
has to be followed because any leniency on this matter could cause a serious mishap. When
coming to vehicles it is essential to have regular training of vehicle safety in order to avoid
crushing injuries. Therefore, vehicle operators such as forklift drivers should know about the
correct speed limit to drive at, as well as being aware about the blind spots and other necessary
skills. That is why in the distribution centre we have zero tolerance for reckless driving. Once
month fire safety drills are also conducted, so that the work force is always prepared to handle a
fire situation. The purpose these safety drills is to make sure that the work force stays calm in
these kinds of situations as panic in such a situation can cause havoc. Finally, the last protocol is
to educate the work force about “First Aid Kit” as these are the basic skills which if performed at
the right time can save a life.
7
Challenge 6 – Design your DC
Provide a visual drawing / rendering of your DC that includes all of your ideas and
recommendations above.
This illustration is to include all of the major components of your DC
(i.e. receiving, storage, picking etc.).
This drawing may be completed in any application or by
hand, then cut and paste the image onto this page and resize it to fit the page.
Then, describe
the decision you’ve made on the placement of work zones within the DC and any consideration
on the general operation that factored into your design.
Complete response here will consider what functions need to be accommodated in the DC and
the general operation of the DC itself. The only sources to be used for this discussion are those
found in your textbook, the course site, the course modules, and course discussion boards.
8
The above image is a design of the distribution centre that I have created for PlantX Life. The
distribution centre is divided into 2 parts, Zone A & B. Where ‘zone a’ is the refrigerated storage
where we will store all the products that need refrigeration such as grocery and baby food.
While in ‘zone b’ which is the non-refrigerated storage will be used for the purpose of storing
products such as beverages. Both the zones have docks at the receiving end as well as shipping
end. Each zone has its own separate stretch wrapper, storage facility and an engineered system
of conveyor belt which is used to provide some automation in order to increase the efficiency of
distribution centre. Whereas ‘zone b’ has the common are which includes the administration
office, cafeteria, locker rooms and washroom. Both the zones are interconnected with doors. In
the very beginning of the distribution centre in both the zones we have the labelling and
scanning area, where all the loads will be scanned for the purpose of gathering information. The
main entry and exit gates for the employees is in ‘zone a’.
9
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