Beverage DC

This warehouse distributes beverages such as soda, juice, water, tea, and so on.
There are relatively few skus but they go to many destinations. Most activity is
picking cartons from pallets, but without automation.

This is to supplement the course and the book Warehouse & Distribution Science, at
the Georgia Institute of Technology, by John J. BARTHOLDI, III and Steven T.
HACKMAN. Everyone is welcome to use the book and materials for educational
purposes, as long as all copyrights remain intact.

Pepsi Bottling Group

Pepsi owns 261 distribution centers in the US. Many are part of bottling operations, as
is this one in Atlanta. This one stocks around 400 skus. Pepsi tries to keep no more
than eight days of inventory on hand.

The DC picks cartons of beverages onto pallets and then load the pallets directly into
waiting trailers. The facility recently converted to “pick-to-voice” and reports that
training time has been reduced. But without a pick list, experienced workers are no
longer able to plan convenient routes. They must rely on the control system to do this.

The warehouse management system organizes the customer requests into pallets and
then directs the picker to the appropriate skus to build this pallet.

There are about 16 order pickers working within 7 aisles. The forward pick area is
restocked in the morning after visual check. A popular sku will have several pallets
floor-stacked in the forward area and “letdowns” are performed as needed.

There are two kinds of customer orders: warehouse transfers are typically full pallets
that are being moved from this manufacturing site to an outlying DC; and regular
orders, which are stores or other outlets for the product.
 Pick aisle
Order-picking
Order-picking Orders for small customers
Pick-to-voice has reduced
Order-pickers ride through flow toward the doors,
the learning curve, but
the forward pick area, orders for large customers
pickers cannot plan their
picking cartons to pallets. flow in the reverse
own routes.
direction.

Cans are picked first 2-liter bottles

Cans provide a stable These are especially
platform on which to stack popular during holidays and A properly built pallet
subsequent items. Superbowl. Cans on bottom, then 2-liter
bottles, then smaller bottles.

53-foot trailer Only about 50% full Side-loading trailer

These carry customer There is not enough height Customer orders are
orders, especially high- to stack pallets, so they are aggregated and product
 “picked-to-truck”. At
volume ones, for delivery to loaded 1-high, 2-across, 11-
delivery, the truck is picked
the store. deep.
like a small warehouse.

Honeycombing Pallet rack

3-deep floor stack
Space at the front of a lane Non-carbonated product is
Most product stacks well
is unusable until the lane is at greater risk of damage if
and is stored in lanes of
empty and can be stacked so expensive skus
various depths.
reassigned. are put in rack.
Copyright © John J. BARTHOLDI, III. All Rights Reserved.
Last modified: Mon Jun 21 15:52:17 EDT 2010