Improving Storage Capacity and Space Utilization through COI Dedicated Storage and Rack Based Layout Redesign of a Bottled Drinking Water Warehouse

The main problem in the Danone bottled drinking water (DBDW) warehouse is the narrow aisles resulting from efforts to maximize warehouse space capacity. Other problems include excessive pallet stacking height, the use of non-standard pallets, and the random storage policy applied in the warehouse. The purpose of this case study is to redesign the layout of the DBDW facility by first analyzing the layout of goods storage in the warehouse. Reassigning products with the Cube per Order Index (COI)-dedicated storage policy reduced the total travel distance by only about 4%, so the warehouse layout was redesigned and two storage media, a rack system and a block-stacking system, were compared. The results of the comparison show that the layout with rack storage media is more feasible to use than block stacking storage media in terms of warehouse utility and the number of goods stored. The new warehouse can store 1156 more items and secure pallet stacking.