ABOUT ASIAN FOODS
Asian Foods is a producer of canned foods. They make both canned tuna products as well as canned food for pet dogs. As Asian Foods continues to expand their business, they also seek to scale their production capacity. Previously, Asian Foods expanded their factory site by setting up multiple warehouses scattered around the production facility. Due to the nature of their production process requiring transfer of WIP from production facility to warehouse storage and back, Asian Foods was reluctant to consolidate their warehouses inventories. The complexities of the production process could lead to multiple logistical issues and inaccuracies in locating the correct product batch.
Asian Foods’ most immediate need is to be able to expand production/warehouse capacity while also efficiently transferring WIP between producing facility and warehouse storage. Ultimately, this would require the consolidation of their warehouses into one, while also refurbishing the old warehouses into production facilities to allow for expansion. Initially, Asian Foods planned to construct conventional warehouses to reach their goals, but switched to an automatic system as both had similar overall costs.
The solution offered to Asian Foods consists of the consolidation of all warehouses into one to allow for increased production area as the old warehouses would all be turned into new production lines. The consolidated warehouse would be equipped with an automatic storage and retrieval system to optimize the area as efficiently as possible, giving Asian Foods the best ROI in terms of area utilized. To make transfer of WIP from production facility to storage more convenient, we equipped Asian Foods with a RGV bridge, connecting 3 production buildings to the warehouse. Because their products are made to stock, FIFO needs to be accurate as cans are not labeled until order is ready to be shipped.