1 Design and Planning of Warehouses : Application to the Case of Sociedade da Água do Luso

The supply chain design and planning is essential for any company, since its competitiveness is closely related with the efficient integration of logistic activities and the fulfilment of the required service levels, at the lowest possible cost. In particular, warehouses are known as an area where significant performance improvements can be achieved. The problem in study was presented by the company Sociedade da Água do Luso, producer of bottled water. This company aims to redesign one of its current facilities, merging all its production and warehousing activities in this new facility, with the intention of reducing its logistic costs (Project One-Site). This work attempts not only to redesign the existing facility but also to plan its operations, since these decisions are strictly interrelated. A financial analysis and a performance evaluation is also performed in order to evaluate the viability of project One-Site. The present work follows the framework proposed by Gu et al. (2007) for warehouse design and operation problems, comprising three main interrelated areas: design, operation and performance evaluation. The decision process regarding warehouse design and operation planning is made simultaneously, translating their close interrelation. In particular, the sections that compose the warehouse are dimensioned and a proposed layout is presented. It is also performed the equipment selection and it is determined the required workforce. This work is expected to be a useful tool for the decision process for the managers of company Sociedade da Água de Luso. Keywords: warehouse planning and design, redesign, operation planning, storage.