Fig. 1 shows the proposed layout for Northgate Distribution, a new warehouse supplying independent retailers in the UK. Products arrive at the receiving bay...
Question 1 Report
Fig. 1 shows the proposed layout for Northgate Distribution, a new warehouse supplying independent retailers in the UK. Products arrive at the receiving bay, are checked, stored, picked for orders and loaded onto delivery vehicles. The business sells packaged snacks, bottled drinks and cleaning products. Its manager wants a layout that reduces handling and helps customers receive the correct products. The manager is considering whether to use the area marked C for returned goods or for fast-moving stock. Retailers have complained that some delivery cartons have been sent to the wrong customer.
(a) Which one of the following is the main purpose of the receiving bay: storing completed customer orders, checking incoming deliveries, advertising new products or setting retail price? [4]
(b) Which features of a warehouse layout would help Northgate reduce errors when selecting products for retailers? Explain three features. [6]
(c) Which option should the manager select for area C: returned-goods storage or fast-moving-stock storage? Explain your answer, including reasons why the other option may be less suitable in this location. [10]
Answer Details
(a) The receiving bay is mainly for checking incoming deliveries. This ensures the correct goods and quantities enter the warehouse system. [4]
(b) Clear aisle and rack-location codes help pickers find the required item accurately. Barcode scanning can check the selected product against the customer order. Separate, marked areas for product categories reduce mixing, while pick lists or digital instructions guide staff through the correct selections. Any three explained features. [6]
(c) Area C should be used for returned-goods storage. It is away from normal storage and the picking area, so returned or damaged goods are less likely to be selected for a customer order. Staff can inspect and record returns, then decide whether they can return to stock before they re-enter the main distribution flow. This also reduces congestion in the main picking area. Fast-moving stock is normally best located close to picking and dispatch to reduce travel time. Area C is less direct than the storage-racks-to-picking route, so using it for fast-moving products could increase handling. [10]
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