Sneaky Sneakers. Existing Conditions. Company Profile.
Sneaky Sneakers (SS) is a retailer that sells athletic shoes in it own stores. It currently operates 500 stores that are located primarily in shopping malls. They have recently opened their website and are now selling shoes directly to consumers. They have outgrown their current facilities, and they need to design a new distribution center that will be able to handle their retail and internet business in the same facility.
Sneaky Sneakers has found a property for their new distribution center. This 200,000 square foot existing facility features 32’-0” available clear stacking height to the top of the top load (including clearances required for overhead sprinklers). SS would have to sign a 5 year lease on the facility. The facility lease cost is $4/square foot/year. The landlord will allow SS to lease the space they will require for their operation. Any unused space by SS may be leased to another party and will not be available to SS after that.
Typical Bay is 55’-0” x 44’-6”
Sneaky Sneakers has a warehouse where they house their current operations. This warehouse is approximately 75,000 square feet. Cases are received floor-stacked in containers from overseas. Pallets are built manually on the receiving dock and then moved to storage. All product is stored in pallet lanes. Not all pallets are stored in this facility. SS uses another remote warehouse to store overflow pallets. Pallets from the overflow warehouse arrive already palletized. Cases are picked from pallets on the floor to complete orders. Manual pallet jacks are used to travel the warehouse and build orders. Completed pallets are moved to the shipping dock where they are stretch-wrapped and paperwork is generated. Pallets are then shipped via LTL carriers to the retail stores.
The current operation supports 500 retail stores. A store normally receives a replenishment order every 2 weeks. A normal replenishment order is 5 pallets and consists of mixed SKUs on all pallets. SS plans on adding an additional 75 stores per year for the next few years. SS’s new internet-catalog business is just taking off as well. They currently offer 100 SKUs to their online customers. The are fulfilling 250 orders/day out of their online business. They hope to grow this area of their business at 20% per year and expand their online catalog to include all of their SKUs (approximately 2000).
SS Management anticipates Returns becoming a significant operation with the expansion of their internet-catalog business. It is anticipated that anywhere from 3% to 15% of all orders will be returned. SS needs to have a work area designed that will allow for the quick and efficient processing of a returned merchandise, and with flexibility to handle the high or the low end of the returns rate.
There has been some limited analysis of the current state of Sneaky Sneaker’s operation. The following data reports have been made available for your use:
Peak Month Volume in Pallets
Typical Daily Order Profile
Average Lines/ Order
Typical Daily Order Statistics
Your team will design a new distribution center using good material handling practices. The project will require analysis and design of material flow, selection of appropriate material handling equipment, and a detailed description of the operation.
The submitted designs will be judged in a competition.
Projects will be evaluated using the following criteria: