International University – Vietnam National

University
Department of Industrial System Engineering

REPORT
WAREHOUSE MANAGEMENT
Lecturer: M.Sc Nguyen Hoang Huy

ASSIGNMENT 2

MEGA MARKET AN PHÚ

Hồ Gia Khánh – IELSIU17009

Nguyễn Minh Tiế n – IELSIU17004
Hoàng Vũ Cẩm Tú – IELSIU17092
Huỳnh Ngọc Hải – IELSIU17054
Lê Phạm Nguyệt Thương – BTBTIU15052
 I. WAREHOUSE LAYOUT AND FUNCTION

Mega market is considered as a small warehouse but the main function is about the super-market.
Inside Mega Market, we can see that it is located very optimized and easy to go for shopping and
picking the product. Mega Market depend on the clarify warehouse layout such as: instruction, zones
by type of goods, station for each of activity, and located each block follow by the number and
alphabet order.

Mega Market has an clearly layout, divided into so many part of main function. As we can see in the
front of main gate, they design a customer services corner. Inside that , they located each kind of
product’s function following by the column. A perishable product like: fruit, vegetables, fish,… they
set up it near by the good receiving/leaving gate, it is easily to pick up and transfer depend on the
customer’s demand. Cover the border of super-market is a lots of station like: bakery, BBQ, beverage,
alcohol, office stationary, and the last one is fashion. They also design a block of more over 20 cashier
for customer’s checkout become more faster and convenience.

Households Sports & Toys Hard Goods

Cosmetic Grocery Freezer

The super-market:

 Provides for the transportation interface.

 Provides for order-picking space.
 Provides storage space.
 Provides office, and customer services.
 Determines each item’s order quantity.
 Converts units into a package like a cubic on pallet.
 Allows wide aisle space for handling equipment works.
It separated into 4 parts:
Zones :classify a set of areas that share common properties. A distribution center is separated into
different zones based on its properties, like package type and kind of goods.

Locations :They are different physical regions interior a warehouse. An location ID is given to space
in a area where stock is placed. It is always related with a zone and a location. Using for tracking and
processing activity like: received, stored, retrieved and shipped

Blocks: For each zones, they separated to so many blocks. Each block has a length of 10 meter, and
3.5 meter height (2-3 shelfs). And they follow by the number order to name for each of block
(1,2,3,…). Between each, they have a wide range aisle (2.03m), it is enough space for all the handling
equipment working.

Stations: A physical location that used for performing the function of space, specific activities or
group of activities. Examples: Receiving Station, Delivery platform, Ship/Sort Location,…

II. OPERATION PROCESSES

1 .Receiving and check-in

When the truck comes at the front side, the material is unloaded by seeing the consignment
note number of the package. The supervisor checks if all the materials are correctly unloaded and also
ensures that materials go to the right areas. As soon as the material is out for delivery the status in the
systems is updated and the daily delivery report is made by the supervisors of the respective trucks.

Quality checking is also done by Mega Market team. This strategy makes MMVN efficient
and also to their supplier to deliver all quality products with safety with less waste.

 If the certain material is lost or damaged the supervisor will report to higher authority, which
is the operations in-charge of the MMVN who in turn will report to the booking office from
which the material is booked.
 Fresh goods are shelved early, meat and vegetables are selected through a quality check
which is done by the MMVN quality assurance team. The standard and polices guarantee that
all items should be in great form, quality and freshness.
2. Storage

After checking quality and quantity. Goods are loads on pallet for goods that have long expiry
and are easy to be stored. For fresh food, they are usually loads in the baskets and stored in proper
conditions. Then storage units with labels can go to different places and on basis of place for which
the material has to be delivered, the material will go different to different location inside Mega
Market. Noted that storage units are packed following priority of same categories and brands, and will
be put on the rack where the supermarket distributes the same category of products. The heavy
material storage units are lifted by means of forklift & the normal storage units are moved by hand
pallet trucks.

Fresh food: Special care is taken in handling, storage and maintaining freshness of products
throughout their shelf life. MMVN offers a platform for Fruit & Vegetables equipped with modern
accessories (air conditioner, bug zapper lamp, …) for product processing. This ensures hygienic,
temperature-controlled, clean and packed fruit and vegetables as per international standards.
Freshness of food products is checked on a daily basis to make sure that no product is left on the shelf
that does not fulfill standard requirements of quality and freshness. Temperature monitoring is done
manually and by computerized mechanisms, both during transportation truck and in cold storage.
 Dry Food :Special attention is given to the storage of high quality grocery items such as rice,
pulses, lentils, spices, etc., to maintain their color, texture, and aroma. A separate area has been
designated for spices and nuts for the ease and comfort of customers.

Other products: All products are kept in the proper conditions and consolidated into a
storage unit on the assigned rack. MMVN not only asks their suppliers to follow the quality standards,
they also apply strict hygiene and sanitation requirements in the day-to-day operations of their stores.
All products are stored or distributed in a safe location for both customers and storage units.

3. Order-picking

When orders come, the order manager collect all of the order and separate into picking lists
based on product area to optimize routes and processes. Instead of picking orders one at a time,
pickers pick order in batches. This eliminates wasted time on overlap created by going to the same
location multiple times to complete separate orders.

Each picker guidance with picklist moves the trolley /cage roller to the assigned racks with a
forklift driver in a shortest driveway. In order to keep safety, customers are not allowed getting in the
occupied aisle. After the forklift driver picking the pallet down on the ground, the picker takes the
retrieval unit of products. If the picker want to pick all of the pallet, the picker will move it by the
handling pallet truck. When all of the items in the picklist are picked up, the picker moves the trolley /
cage roller to the consolidation point at the delivery platform.

4. Packaging and shipping

At the consolidation point, pickers consolidate products by the customized size of the orders.
The supervisor checks all of the order carefully to avoid mistakes and notes down in daily report.
Then, the checked orders are packaged in customized packaging unit in cardboard boxes or in basket
for fresh food and moved to the delivery store.

In the delivery store, workers consolidate shipping units according to orders and put on pallets
with the orders code. Then, goods are moved out delivery yard and unloaded from the pallets to the
trucks. Finally, ordered products are shipped to the customers. Some goods are picked at the Mega
Market by the customers. For the retail customers, they have to pick all of their products and package
goods in cardboard boxes themselves.

1.Checking 2. Storage / Retrieval 3. Consolidation point

4. Consolidate 5. Packaging 6.Shipping

 III. STORAGE AND HANDLING EQUIPMENT

1. Storage Equipment

Storage equipment is a type of equipment that is used for holding or buffering materials over
a period of time. The objective is to reduce labor costs and/or increase space utilization.

1.1 Pallet Storage

In the warehouse the largest standardized material-handling unit is generally the pallet, which is
just a rigid base on which cartons can be stacked. In Mega Market, two types of pallet are used:

 2-way entry pallet (figure 1): provide great strength and durability.
 4-way entry pallet (figure 1 and 2): slightly more expensive, but the extra flexibility in
handling can save both time and space in the market. Most are made of wood, but some are
made of durable plastic. This type of pallet is mostly used in Mega Market.
1.2 Racked Storage
There are also two types of rack storage are used in Mega Market:
 Wide aisle pallet racking (figure 3): quick access and easy compared with other types of
racking. This type of racking, which has 2.03m aisle, is mainly used in the market to allow
forklift and customer to move easily.
 Double-deep racking (figure 4): allows pallets to be stored two deep in the racking thus
eliminating an aisle. It is mainly used in the broken goods store.

Figure 1 Figure 2

Figure 3 Figure 4

Figure 3 Figure 4
 2. Handling Equipment

Material handling equipment is mechanical equipment used for the movement, storage, control
and protection of materials, goods and products throughout the process of manufacturing, distribution,
consumption and disposal

2.1 Hand Pallet Truck

A hand pallet truck (figure 5) is an HPT has a hydraulic pump to enable the operator to lift a pallet
sufficiently to be able to move it across the warehouse floor.

2.2 Conveyors

A trolley (figure 6) is a small vehicle with wheels that help carry things easily.

A cage roller (figure 7) has the same feature as the trolley but it has a cage to keep product in place.

2.3 Forklift

A forklift (figure 8) is a vehicle with a pronged device in front for lifting and carrying heavy and high
loads quickly and flexibly.

2.4 Walkie Stacker

A walkie stacker (figure 9) is a walk behind pallet truck with a mast for lifting pallets to heights.

Figure 5 Figure 6 Figure 7

Figure 8 Figure 9