Pick Belt Capacity Optimization Project

Closed
DISC Consortium (University of Calgary)
Calgary, Alberta, Canada
Rebecca Mayhew
DISC Administrative Coordinator
(1)
2
Preferred learners
  • Alberta, Canada
  • Academic experience or paid work
Categories
Business strategy Operations
Skills
scheduling order fulfillment mathematical modeling mathematics finished good warehousing operations occupational safety and health ergonomics
Project scope
What is the main goal for this project?

Frito Lay Western Canada (PepsiCo Foods Canada) has two Alberta manufacturing facilities that are located 45 minutes apart. The Lethbridge facility produces corn-based products and operates as the hub for warehousing and distribution. The Taber facility produces potato-based products and directly ships finished goods to Lethbridge for warehousing and distribution.

Due to business growth in the last three years, the Lethbridge warehouse has run out of capacity on the pick belt (full case picking) resulting in more walk back locations and less efficient order picking.

The main goal of this project is to analyze the performance of PepsiCo’s pick belt from a product allocation perspective and identify what and when they should store on the pick belt. By the end of this project, it is expected to have developed a mathematical model that determines the optimal product allocation and scheduling of the pick belt, along with recommendations on other suitable solutions to support business growth.

What tasks will learners need to complete to achieve the project goal?

To achieve the project goal the student will be required to review all applicable project data. After collecting the information, the student will be required to develop a mathematical and/or simulation model to help answer the following:

- What product should be allocated to column flow, walk back, and traditional pick locations?

- Where should high- and low-volume products be located for optimal replenishment?

- When should the product be on the pick belt in terms of scheduling to fulfill orders?

While answering these questions consideration should be given to warehouse employee safety and ergonomics, a target fill-rate of 99.5%, overall cost of operations, and the future growth. In the end, the student is expected to develop a mathematical model formulation that will help to make the required decisions regarding the operations of the pick belt, and provide a documentation for the process to be repeated in the future.

It is expected that the student visits both distribution facilities.

How will you support learners in completing the project?

The student will have the support of the PepsiCo Warehouse Manager and two University of Calgary faculty supervisors. A weekly progress meeting will be held with the faculty supervisors. The contact person from PepsiCo will also attend these meetings as required.

The student will be provided with computing resources (if necessary) and will have access to all required data provided by PepsiCo. The student will need to sign a nondisclosure agreement.

About the company

The Digitization for Innovative Supply Chains Consortium (DISC) at the Haskayne School of Business in the University of Calgary, is the first Canadian references for advanced skills and research; focusing on three key themes: Data Centric Supply Chains, Smart Logistics, and Sustainable and Responsible Supply Chains. Through collaborative research and training activities consortium members are at the forefront of transforming supply chains of the future with digital technologies. The opportunities posted will be on behalf of our consortium members, allowing applicants to be involved in break through applied research to digitize and optimize supply chains.