ISSN 2683-345X

journal homepage: http://ijiemjournal.uns.ac.rs/

International Journal of Industrial

Engineering and Management

Volume 12 / No 3 / September 2021 / 206 - 215

Original research article

Operations Engineering for Food

Warehousing Improvement:
A case study from the Navy
A. Frias a,b*, R. Delaunaya, P. B. Águaa
a CINAV, Escola Naval, Instituto Universitário Militar, Almada, Portugal;
b Advance/CSG, ISEG-Universidade de Lisboa, Lisboa, Portugal

ABSTRACT ARTICLE INFO

Global competition and public awareness drive organizations to improve their management Article history:
processes, including those related to logistics and warehousing. With the aim of improving
Received March 16, 2021
the efficiency and safety of the food warehousing processes, an analysis of the warehouse
layouts and storage areas layouts was carried out. Through the reorganization of the space Revised July 14, 2021
and the review of storage policy, a practical proposal was made. To obtain more efficiency, Accepted July 17, 2021
an improved equation for the calculation of the distances travelled within the warehouse was Published online September 10, 2021
defined. The implementation of the proposed improvements provides efficiency to ware-
housing, taking the Navy food central warehouse as a real case study. Keywords:
Fixed location;
Layout;
Logistics;
Warehousing;
Warehouse flows;

*Corresponding author:
Armindo Frias
[email protected]

1. Introduction be a tool for minimizing costs related to the acquisi-

tion of resources by contracting larger quantities. The
The existence of global markets and the present efficiency of the warehousing, as a whole, depends on
economic and social environment require efficient the performance of its different components.
and sustainable management of the available resourc- The movement of cargo and the coexistence of
es. In the search for competitiveness or justification people and equipment in a confined space involves
of the spent resources, private and public organiza- risks to the safety of people and goods. To analyze
tions feel the need to implement improvements in the warehousing activity, it is not enough to meet the
their organizational procedures and work processes. economic efficiency criteria, safety and protection of
Warehouses, as part of the logistical system re- workers and materials handled as well as the protec-
sponsible for making material flows more flexible tion of the environment must be taken into consid-
between the point of origin and consumption, plays eration.
an essential role in the continuity of the production Food Supply Chains and warehousing have in-
process or the satisfaction of customers. It can also creased challenges and risks, like rapid decay of food
Published by the University of Novi Sad, Faculty of Technical Sciences, Novi Sad, Serbia. DOI: http://doi.org/10.24867/IJIEM-2021-3-288
This is an open access article distributed under the CC BY-NC-ND 4.0 terms and conditions
Frias et al. 207

items or cross-contaminations on its handling [1]. Within the warehouse operation upstream, there
New technologies can help to prevent some risks, but are several activities that may affect the entire cycle of
not all warehouses have the business size or financial operation, as for example the location of warehouse
capacity to implement them, like power Warehouse and the definition of their macro layouts [6], [7]. The
Management Systems or smart packaging [2]. layout establishes the location of the different areas
The Armed Forces, for the fulfilment of their of interest for the operation within the warehouses,
strictly military missions or to support civilian popu- such as the reception, consolidation or unbundle of
lations emergency needs, should have a logistic struc- cargo, shipping, support and administrative areas, as
ture that ensures the continuity of their operational well as the material storing areas. There are a number
capability. Food is a critical factor for maintaining of relevant factors that should be considered in the
the personnel physical and mental condition, and development of a layout: the location of the different
is therefore essential to ensure the continuity of its areas of basic warehousing operations, the location of
supply. The Portuguese Navy is under a process of the materials within the warehouse and the definition
updating its central food warehouse facilities, with the of the different applicable storage techniques [8]. Re-
construction of new cold rooms, which poses an op- gardless of the typology of the material to be stored,
portunity for improvement [3]. the layout should maximize the use of space, equip-
This work aims to recognize opportunities for im- ment and human resources, as well as ensuring acces-
provement on the handling of food items within the sibility and protection for all materials [9]. To obtain
Navy food central warehouse facilities and, propose an efficient layout, it will be necessary to consider the
the best layout solutions for the spaces under con- different factors individually, and the analysis of the
struction. To achieve this, the movement of materials dynamics arising from their interaction.
within the facilities was analyzed as well as its relation- The cost of handling an item depends on the
ship with the storage place of the different clusters of distance travelled and volumes occupied within the
food items. Based on knowledge, some options of warehouse. The layout, which maximizes each of
layout were discussed with the technicians, to under- the handling variables (travelling distance and stor-
stand its practical applicability. age area), can be different. therefore, to evaluate the
Being a real case study, it is expected that the effects of different storage strategies and handling
change on the warehouse layout and storage method techniques, it is necessary to specify the layout. Once
will make it possible to reduce the movements of ma- the layout is defined, the cost associated to volumes
terials, and consequently, minimize the use of work- becomes fixed, so the operating costs become a func-
ers and cargo handling equipment. The achieved tion of the average quantity of moved items, travelled
findings can be generalized to other similar food dis- distances and frequency of the materiel movements.
tribution centers The calculation of value based on these three factors
This document comprises seven sections. Besides can then be used to optimize the total warehouse op-
this introduction, section two presents the relevant eration expenses [10].
theoretical background concerning the warehouse Three basic functions can be considered in ware-
activities; section three identifies the chosen method- housing: inbound movement, associated with the re-
ology; section four presents the facilities under study; ception and storage of material; storage of material
section five presents the proposed improvement until its need by an internal or external customer; and
solution; section six, the improvement quantification outbound movement, related to the fulfilment of or-
process and the discussion of the achieved results, ders [9].
which is followed by a conclusion. Considering outbound movement, order picking
is an extremely expensive activity and directly con-
tributes to the quality of service provided to clients,
2. Background hence, it is often considered the main warehousing
activity. Automated order picking systems require
Nowadays, managers recognize the essential role
high capital investment, but a manual system is a la-
played by logistics for the success of organizations [4].
bor-intensive operation and may represent the main
Warehousing alone doesn’t produce much value and
cost within the total warehouse operational costs.
it is indeed a source of costs for organizations. How-
Order picking costs arise mostly from time travelling
ever, if seen as part of the logistical cycle, it produces
and suboptimal layout designs [11].
an effective edge, making materials flow more agile
Order picking refers to the transport of the cor-
and reducing uncertainty, while creating competitive
rect materials, in the right quantity, from its storage
advantage [5].
International Journal of Industrial Engineering and Management Vol 12 No 3 (2021)
208 Frias et al.

area, in order to satisfy the order from a client, be it is used. However, the problem needs to be present-
internal or external to the organization. For the time ed as NP-hard TSP only when the warehouse lay-
needed to pick an order, three main components out is not a standard one- or two-block rectangular.
can be considered: (1) Routing – which refers to the For simpler operations, where most movements in-
movement of an agent, a worker or machine, who side only have one point of origin and destination, a
arranges the orders, from one place to another, to simpler model may be used [9]. For the calculation
retrieve the items; (2) Picking of items – which con- of these distances, Carvalho et al. [8] proposes the
sists of a series of actions that goes from the worker use of Equation 1, where the variable T refers to the
positioning near the location of the stored item to the number of movements and D to the distance; the in-
actual collection of the intended items; (3) Remaining dex I refers to the place of origin, j to the place of
activities – which includes the collection and return destination, and n to the different number of existing
of support equipment to be used in the collection areas.
and movement of the material or the acquisition of
information [12]. Order picking activity is critical be-
cause of the costs and loss of productivity, in case of
failure, and for keeping the level and quality of cus-
tomer service [5]. This relevance is self-evident in the
literature review led by Staudt et al. [13], regarding Warehousing improvement is greatly influenced
the performance measurement within warehousing, by reducing time spend on movements, and they are
which suggests that inbound activities have received easier to influence because they account to about
less attention than outbound activities. The inbound 50% of worker’s time in the order picking operations.
performance was measured in terms of time and pro- The time needed for the pickup of items, which ac-
ductivity, while the outbound was evaluated in terms counts to about 20%, and remaining activities, are in-
of time, quality and productivity. No study was iden- fluenced by factors such as shelf type or staff training
tified to assess the cost of both activities as a way to [5], [12].
evaluate warehousing performance. According to Emmett [17] and Çelk & Süral [18],
To improve the efficiency of order picking, dif- one of the most relevant factors in order picking op-
ferent approaches can be taken, and these can be erations is the location of the items. The closer to the
clustered into three groups of operating policies: (1) pick-up/drop-off point the items are stored, the short-
Batching - put several orders or parts of orders to- er the handling time. Similarly, Stock & Lambert [19]
gether to create one or more movements of picking. suggest that the most popular materials, which have a
When several different orders are combined, the higher turnover or demand rates, should be located
products can be gathered without losing the integrity in areas closer to the receiving and shipping areas,
of the orders, either during the picking (sort-while- hence minimizing movements within the warehouse.
pick) or after the picking is complete (pick-and-sort). The movement of materials involve the move-
When several workers work on a single order, each ment of people and often the use of cargo handling
worker is allocated to a specific storage area; (2) Stor- equipment, making it critical for the inclusion of safe-
age assignment - focuses on establishing rules for as- ty and security issues. In order to minimize the occur-
signing products to storage locations. Existing rules rence of incidents with consequences for workers and
range from random, where new sites are randomly moving loads, in compliance with national and inter-
assigned to products, to full-turnover storage, where national legislation, safety plans must be developed.
products with the highest frequency of movement are These plans, in addition to the general rules, should
assigned to easily accessible positions. There are also take specific rules into consideration regarding the
intermediate forms, such as ABC-storage; (3) Rout- materials movement, facilities features or operators’
ing - the methods used range from simple heuristics procedures. As far as their scope is concerned, these
to optimization schemes using dynamic program- should include the warehousing of material, due han-
ming [12]. dling and the risk of fire [20].
Routing optimization is a relevant factor for min-
imizing warehousing costs [14]. The optimization of
order-pikers routing can reduce the traveling distance 3. Methodology
in a very effective way [15], [16]. Often, to minimize
In order to achieve the objective of identifying
the time/distance of material movement, the Travel-
improvements in the warehousing under study, the
ing Salesman Problem (TSP) or an equivalent model
layout of the different facilities, existing or under con-
International Journal of Industrial Engineering and Management Vol 12 No 3 (2021)
Frias et al. 209

struction, and the layouts of the storage areas were to fulfil inbound and outbound activities; (8) verifi-
analyzed. By redesigning the layout, specifically the cation of proposed amendments in terms of security
work areas and storage places, one is changing the and food cross contamination; (9) quantification of
distances to be covered for the inbound and out- the impact of changes in terms of cargo handling and
bound activities. financial impacts; (10) validation with experts con-
Therefore, to carry out this study, the following cerning the validity of the suggested proposals. The
steps were taken: (1) analysis of the existing layouts followed steps can be summarized into the ten-stage
and the flows associated with inbound and outbound methodology that is shown in Table 1.
movements, in terms of efficiency and security; (2)
go back literature and technical expertise; (3) iden-
tification of potential improvement measures; (4) 4. Facilities
cluster food items, simplifying the task of location
The Portuguese Navy central food warehouse fa-
assignment and, while maintaining storage flexibility;
cilities have a dry grocery store, eight cold rooms and
(5) computing of inbound and outbound distances
several technical supporting areas, as per Figure 1.
for each class of food items and movement rate; (6)
The current facilities present some vulnerabilities,
performing an ABC analysis in terms of movement
such as the fact that unloading and shipping share the
rate; (7) proposing class-based storage where the item
same docks, although with a time lag. The reception
classes with the highest handling rate are located de-
and picking takes place in the same area, which is
pending on the minimization of the distance needed
also a pedestrian crossing area. The reinforcement of

Table 1. General methodology

Activities Actions taken

1. Survey of the existing situation (1)
2. Go back to knowledge (2)
3. Identify potential improvement measures (3)
4. Collect and arrange data (4)(5)(6)
5. Specify measures (7)
6. Identify potential arising risks (8)
7. Rectify proposal --
8. Quantify impacts (9)
9. Validate (10)

Figure 1. Facilities overview

International Journal of Industrial Engineering and Management Vol 12 No 3 (2021)

210 Frias et al.

safety signage is also ensured. terion and dependent on the subjective assessment
The dry grocery store has three sets of pallet racks of each worker. The movement of loads between the
with two levels in height. It includes an administrative inbound and outbound docks as well as the location
office and a set of metal silos for storing liquids in of the articles in the warehouse is mostly done on
bulk, as shown in Figure 2. Its main vulnerabilities pallets, using hand or electric pallet trucks, forklifts
are: (1) the existence of unused spaces, the metallic or stackers.
silos were used in the past for the storage of liquid There are eight cold rooms, half of which are re-
oils in bulk, but with no use for a few years; (2) the frigeration ones and the remaining are freezing ones.
distribution of the items on the racks do not take into Each room has an associated food typology, as shown
account their handling rate; (3) part of the racks have in Figure 3. The main vulnerabilities are the degra-
difficult access due to the location of the shipment dation of the facilities and energy inefficiency of the
area; (4) the false ceiling has asbestos in its constitu- equipment; the area for the reception and picking
tion; (5) the racks have no anti collision protection. shares the same space as is the case with the cargo
The storage method, in terms of allocation of handling area, without temperature control; the racks
spaces, is made on the basis of an opportunistic cri- have no anti-collision protection.

Figure 2. Dry grocery store

Figure 3. Current cold rooms

International Journal of Industrial Engineering and Management Vol 12 No 3 (2021)

Frias et al. 211

The current dry grocery store and the facilities to the point of entry or exit, and the rearrangement
under construction that will provide new cold rooms of the working spaces, will allow the reduction of total
and the technical and administrative warehousing distances of inbound and outbound movements.
support will be the new Food Distribution Centre Taking one year of historical data related to the
(FDC). The layout of the ground floor of the new activity of the Navy central food warehousing, a need
facilities is shown in Figure 4. is felt for clustering the food items in classes, by affin-
A main innovation was the creation of separate ity and storage needs. With this procedure, it is pos-
inbound and outbound docks and technical spaces, sible to reduce by one-third the data to be processed,
one for cold products and one for products at nor- giving flexibility to the activities of assigning classes to
mal temperature. For cold items, the new facilities fixed storage locations.
will have separate reception and a picking spaces with In order to rank the classes of items, an ABC anal-
temperature control. New cold room machinery will ysis was carried out, according to their handling rate
be more energy efficient and greater storage capacity and warehouse of storage. To carry out such analysis,
for fresh and frozen food will be available. As a disad- the following assumptions were made: (1) it was con-
vantage, the smaller space for cold rooms may lead to sidered that the items located in different warehous-
the need to create different temperature zones inside es are independent, which led to separate analyses
the rooms. Because this construction project adapts for each warehouse; (2) to estimate the number of
existing facilities, the layout is not the most suitable movements between pick-up and drop-off points, the
for the activity in question. average weight per pallet for each class of items was
taken into account; (3) the food items that are deliv-
ered by suppliers directly to the final clients were not
5. Proposed actions considered, since they do not have physical existence
at this warehouse; (4) for cold food items, the future
The storage location within the warehouse is a
FDC facilities were considered.
relevant factor in the definition of the layout and for
the improvement of the warehousing, specifically
through the reduction of the inbound and outbound 5.1 Layout proposals
movements [18]. Therefore, it is proposed to adopt a
Taking into account the results of the ABC anal-
storage method based on opportunistic criterion, that
ysis, the verification of potential cross contamination
place the items with the highest handling rate closer
among different food items, and the objective of min-

Figure 4. FDC new facilities

International Journal of Industrial Engineering and Management Vol 12 No 3 (2021)

212 Frias et al.

imizing the distance travelled by workers and cargo proposed distribution. In each rack, the same class of
handling equipment in the warehouse, the following food items take up the floor and first stage positions.
changing proposals to layouts were made. Items with the highest rotation or weight go to the
Dry grocery store - this space will remain active with ground position.
the building of the FDC. A proposal was made to FDC cold rooms - being a new space, for which
move the area reserved for shipping next to the fu- there is no storage plan, it is not possible to perform a
ture access door, at the actual place of the first silos, comparative analysis with the current situation. In the
hence freeing up access to all racks. This decision assignment of racks, it is considered that the quanti-
requires the dismantling of all metal silos. To opti- ties of food items managed by the entity remain sta-
mize materials movement, the change of its storage ble. As an example, Figure 6. shows the proposed
localization on the racks is also required. As an ex- layout for the future Cold room for charcuterie and
ample, Figure 5a) shows the current arrangement milk products. The space foresees ten racks for stan-
of food classes within the double racks central area, dardized pallets, at two levels in height.
with two positions in height. Figure 5b) displays the

Floor level 1st level Floor level 1st level

Olive oil (other oils) Wine Various Various

Jams, Cereals Bread additives

Bread additives,
Combat ration
Spices Spices, Vinegar
Cereals, Sweets, Tea

Desserts Soups Spices Sweets, Bread additiv.

Corridor

Corridor
Coffee, Powder milk Vinegar/vegetables Sauces Canned fruit

Breakfast cereals Fats, Lard Tomato, Sauces Coffee, Sweet, tea

Sugar, Tomato Vegetables Peeled tomato Flour

Vegetables Canned vegetables

Rice
Tomato Dry vegetables
Dairy milk
Canned fish Olive oil
Wine
Canned sausages (other oils)

Front door Front door

a) Initial situation b) Proposal

Figure 5. Central set of racks

Cold room for charcuterie and

milk products

Legend:
CLf1: Fat derivatives,
Mayonnaise & Marmalade
CLf2: Fresh derivatives
CLf3: Chorizo and Sausages
CLf4: Ham
CLf5: Gammon
CLf6: Bacon and Flour sausages

Figure 6. Proposed layout for a cold room. Source: adapted from Delaunay [3]

International Journal of Industrial Engineering and Management Vol 12 No 3 (2021)

Frias et al. 213

5.2 Safety solution time spend and costs associated with. Parameters m,
n and p represent the upper index limit of the index
With the aim of ensuring workers' safety, food i, j and k, in the same order. Variable 𝐷 ∈ ℚ+, and
hygiene and safety practices, several proposals were variable 𝑇 and index 𝑖, 𝑗, 𝑘, ∈ ℕ.
made: (1) training of workers in the areas of food hy- In this case, index i varies from n = 1 to 3, where
giene, safety practices and safety at work; (2) placing the value 1 refers to the current unloading and ship-
shock protection structures at the base of the rack ping dock, 2 to the normal temperature FDC unload-
supports; (3) implementing a preventive maintenance ing and shipping docks and 3 to the cold temperature
plan for cargo handling equipment; (4) marking the FDC unloading and shipping docks. The index j var-
warehouse floor, defining pedestrian zones and di- ies from 1 to n = 56, concerning the different food
rection of movement; (5) placing concave mirrors or item classes. Finally, the index k varies from 1 to p=2,
a traffic lights system, activated by motion sensors, where the value 1 is for inbound movements and 2
at increased risk areas; (6) reinforcing safety signage; for outbound movements. The first uses electric
and (7) replacing the false ceiling of the dry grocery forklift or stacker (60%+40%) and the second electric
store. stacker or manual forklift (70%+30%), according to
the usual procedure.
From the application of equation 2, quantifying
6. Proposals quantification and due
the improvement of introducing the layout propos-
discussion als, it is obtained a total difference of handling cargo
To measure the efficiency of a system, it is neces- movements of about 524Km/year, corresponding
sary to be able to measure it correctly by selecting the to 35% of travelled distance reduction. To express
appropriate factors [21]. In order to quantify the ef- the obtained improvement in terms of money value,
ficiency of the proposed solution, in terms of the to- three criteria were observed: first, the increasing in
tal distance of cargo handling within the warehouse, the useful life of cargo handling equipment due its
equation 1 was adapted to the specific case resulting lower use; next the saving in operating and mainte-
on Equation 2. nance costs and; finally, the increase in productivity
expressed in terms of man/hour. The percentages
obtained are as per Table 2.
The shown improvements do not reflect the total-
ity of the potential benefits. Some positive effects are
difficult to quantify or to observe in a simple way. As
an example, one can point the simplification of the
Where the variable T refers to the sum of car- monthly and annual inventories and weekly checking
go handling made for each k movement typology, of stocks and movements, or the greater flexibility in
between points i and j; D indicates the distance, in the use of human resources from other warehous-
meters, between the location of points i and j, mea- es, as a result of the fixed locations policy. Worker’s
sured over the used paths. The index i names the perception of self productivity may contribute to im-
physical locations of loading and unloading cargo prove motivation. The increase in productivity and
docks; j indicates the central physical locations of the its consequence in reducing working hours, makes
storage spaces assigned to each class of food items; possible to allocate the available human resources
k identifies the different types of load and mean of to other tasks, increasing quality and service level or
transportation adopted, e.g. box carried in hand, on collaborate with other warehouses belonging to the
pallet using a manual forklift or electric forklift, con- same entity. The improvement of safety conditions at
veyor belt. This differentiation is due to the different work, resulting from improvement proposals to ex-

Table 2. Potential improvement from implementing the layout proposals

Criterion Improvement (%)

Increasing the service life of cargo handling equipment 5

Savings in operation and maintenance costs 7
Increasing productivity in man/hour 10

International Journal of Industrial Engineering and Management Vol 12 No 3 (2021)

214 Frias et al.

isting physical conditions impact reduction of move- the institution. The relocation of workspaces has also
ments within the warehouse. Being the movement of been proposed, improving access to storage spaces
loads a critical factor for the safety of all those cir- and reducing the distances to be covered. For the
culating in the warehouses, less movements and less facilities under construction, a detail plan was pre-
crossing of flows means more safety. sented. The existing situation and the advanced pro-
In order to validate the relevance of the suggested posals were analyzed in terms of human safety, food
proposal, a series of interviews were carried out with hygiene and safety practices.
managers and technicians with proven experience In order to quantify the improvement achieved in
and theoretical knowledge. The obtained answers the distances taken in handling cargo, an innovative
were quite positive and allowed a fine adjustment of formula has been defined. In addition to calculating
the proposals submitted under the case studied. The distances according to the different possible points
head of the responsible organization expressed the of origin and destination, the proposed formula con-
intention to implement the proposed measures of siders that not all movements are equal. It allows
improvement in the near future. the inclusion of different types of cargo movements,
which affect the level of aggregation of loads and the
7. Conclusions necessary equipment to perform it.
The main limitation of this study is due to the fact
Efficient use of resources is vital for most orga- that it is an application to a specific case and therefore
nizations. The public sector is not immune to this the replication needs some necessary adaptations. As
trend. The real reduction in available budgets and future lines of research, it is proposed to apply this
legal limitations to resources dictates the need to im- study to other types of warehouses and organizations
prove the use of existing resources. Warehousing, (different types of goods, layouts and handling meth-
despite its importance for the proper functioning of ods), as well as its extension to an integrated logis-
the logistical system, represents a consumption of tical operation with several warehouses in different
human, financial and material resources that may locations. It is also suggested to extend the study in
be essential for other activities. The food operations order to quantify the impact on workers' motivation
present additional challenges to the warehousing ac- and productivity, resulting from the improvement of
tivity [2]. working methods and safety conditions within ware-
With the aim of improving resource usage effi- houses.
ciency a real case study was conducted within the This work shows that changing the layout of ware-
Portuguese Navy’s central food warehouse. Cargo houses in terms of the allocation of storage locations,
handling movements within warehouses has been taking into account the handling rate of the articles,
identified as an opportunity for improvement. Addi- contributes to the improvement of warehousing.
tionally, it was intended to propose a layout plan for
a cold warehouse under construction. Safety at work Acknowledgements
is a legal prerogative, a motivational factor and a so-
cial obligation, so safety aspects were also analyzed We thank the Portuguese Navy, Direção de
in order to ensure that the proposed improvements Abastecimento, in the person of its Director, Com-
do not represent a reduction of adequate safety stan- modore Dias Gonçalves, the head of the Secção de
dards. Alimentação, Lieutenant-Commander Monteiro
The existence of random strategies in assigning Sereno and his staff, for making this work possible.
storage locations, in a human based warehouse, cre-
ates subjectivity, dependence on the workers that Funding
perform the tasks and ultimately, inefficiencies. Fix-
ing the items that have the highest rate of movement This research did not receive any specific grant
within locations, near the access and exit points of from funding agencies in the public, commercial, or
the warehouses, boosts the reduction in distance of not-for-profit sectors.
cargo handling and the working time of workers and
machines.
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