After completion of the case study, the students will be able to appraise the importance of different methods of location planning in warehouse selection, analyze the load distance values for warehouse location and choose the optimum location based on the load distance analysis.
DB Builders, a prominent Indian construction company, faced a crucial decision in selecting an ideal storage warehouse for a project involving 100 flats spread across five locations. Mr Vijay Kumar, an experienced material handling expert, was entrusted with this task as part of transitioning the company’s material allocation system toward centralization. Using practical travel distances, Kumar meticulously scouted four potential warehouse locations. The selection process hinged on three primary factors: load, distance to apartment sites, safety and cost of the premises, each carrying specific weightage. The project planning department provided scores for safety and cost, helping evaluate the options. This unique challenge arises due to varying material requirements across the apartment locations, demanding an efficient warehouse planning. The selection of the optimal storage warehouse holds paramount importance in facilitating the smooth execution of these larger projects. Kumar’s expertise and strategic decision-making are pivotal in ensuring a seamless transition toward centralized material handling, which is essential for the company’s future success.
This teaching activity is aimed at introductory/basic courses in Bachelors and Masters of Business administration.
Teaching notes are available for educators only.
CSS 9: Operations and Logistics.
