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From: Francois Damba

Date: 05 July 2021

RE: UNIT 2 - TASK 2 – IDENTIFYING WAREHOUSE REQUIREMENTS

Due to the forecasted hurricane, we will need to relocate the warehouse away from Mugla. We have been
told there is a storage height of 2 meters. Using the Mugla stock report and the information we have on the
goods sizes in m3 (meters cubed) per MT (metric tonne), I want you to calculate the floor space required for
the goods stored.

As you have no indication of when receipts come in and in what quantities, you cannot identify the average
stock that is held. Therefore, you should base any calculations on the larger of either the opening or closing
balances.

1. Could you look at the current Mugla stock levels and calculate the surface area requirement in m2
(meters squared) needed in the new warehouse?
Code
Item

Item

g
Packagin

g
Packagin
ng
Accounti

Weight /

Opening

In

Out

Closing

Weight
Bigger -

per MT
Volume

- M3
Total Vol

M2
Area -
Needed
 

on
Descripti

Type

Unit

Unit

Balance

Balance

Rice 5% 50 339,9 1,000,0 700,0 639,9 639,90 1.5 959.85 623.9025

FCRRICEBR5 broken Bags kgs kg 1 00 00 00 00 0 0
FPULBEANRK Beans red 50 262,3 100,0 162,3 262,31 2.0 524.624 341.0056
01 kidney Bags kgs kg 1 12 0 00 12 2 0
FOILRAPERE0 20 litr 12,21 100,00 30,00 82,21 82,214 1.7 139.763 90.84647
1 Vegetable oil Tin ltrs e 1 4 0 0 4 0 8
FNUTWSBX67 Wheat soya 25 33,04 100,00 50,00 83,04 83,042 1.5 124.563 80.96595
22 blend Bags kgs kg 1 2 0 0 2 0
FBAFSUGAW 7,071 1.5 10.6065 6.894225
H04 Sugar white Bags 1 kg kg 1 7,071 0 5,000 2,071 0
FBAFSALTIO 2,357 1.5 3.5355 2.298075
DE Iodised salt Bags 1 kg kg 1 2,357 0 2,357 0 0
HSHETENTF1 pie 8 18,105 5.0 90.525 58.84125
6C Family tents Piece piece ce 5 213 0 0 213 0
HSHETARPW4 60 pie 5 1,650 3.5 5.775 3.75375
60 Plastic sheeting Roll mtrs ce 5 30 0 0 30 0
KRELCOOSET pie 2,560 4.5 11.52 7.488
A Kitchen set Box piece ce 5 512 0 0 512 0
HSHEBLANW Bund pie 5 2,050 10. 20.5 13.325
MT1 Blankets 50% le 30 ce 0 1,230 0 0 1,230 00
HCONJCANP2 Jerrycan pie 3 494 8.0 3.952 2.5688
0 collapsible Box 20 ce 8 520 0 0 520 0
1,101,7 1895.21 1231.889
                  55 48 62
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2. What are the specific storage conditions needed for each of the items you are planning to store in
the warehouse, discuss the appropriate appearance of the goods, and recommend checks to
perform to assure quality?

To avoid worsening in the quality of goods during their stay in the warehouse, we must
carefully consider about the physical environment that provides conditions that ensure the
goods to be stored safely. Not only temperature (heat and coldness) but moisture and
humidity in the air . In our case of Mugla warehouse moving, most of the items are foodstuff
and they can be contaminated and destroyed easily if they were put in improper
environments.
When product like rice, sugar and wheat Soya blend are received in bags, and the
temperature is high outside, the product can increase in temperature. If we left the bags
under the direct heat of sun for a long time, they can absorb much heat and the supplies
can be damaged. Grains like rice and bean stored in Mugla warehouse need to be stored
in dry and cool place and we need pallets on which to stack these bags to get good
ventilation. They are quite sensitive to the maximum 70% of air humidity and 13.5 % of
moisture in the storage environment. We need to thoroughly monitor the moisture level,
and parasites to protect them from any damage.

Cereal and powders , sugar and salt need the similar care and condition of storage like
grains. Canned products like Vegetable oil stored in Mugla warehouse are also sensitive to
the moister because containers can be rusted and bulging. These supplies can be stacked
on the pallets, avoiding direct contact with the cement floor, but not very high stacking
because of their weight

Other non-food items like tent, family kitchen set, plastic sheeting and jerry can need to be
stored in a dry and clean environment. Blankets and clothing are very sensitive to the
moisture and level of humidity because they can fully absorb the moisture and generate
fungus and moths. If we are using battery operated handling equipment, we need good
ventilation for recharging these batteries .This also suggests that there needs to be strict
control over smoking policy in a warehouse and no hand phone usage near the flammable
fuel stock.

3. Can you also comment on the security features we should look for when considering potential new
locations?

We must consider Security as a very important aspect of a warehouse to identify as our

new warehouse. In terms of security, we have to check the following points:

• The compound of warehouse should be protected by a fence or a wall

• Gates and doors must have high security level locks
• At least 3 shifts of watchmen must be put in place
• Security staff must be well equipped with apparatus like torch lights and whistles
• Outside lamps at 4 sides of warehouse must be properly installed

4. What regulatory requirements are needed for the warehouse?

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When selecting a location, we must also take into account the prevailing political, cultural or
security situation of the particular area. The following is a list of regulations that are often
encountered:
 Employment regulations
 Health and safety rules
 Rules that govern the operation of forklift trucks
 Food hygiene
 Storage of dangerous materials
 Storage of drugs
 Building regulations
 Financial accounting rules

Notes

1. Note that there are two NFIs where the balance is given by item quantity, but they are stored
as multi item units. We have information on weight per item and also weight per unit or pack,
together with storage measurements in m3 MT (metres cubed per metric tonne) per item and
storage measurements in m3 per unit.
2. We can either multiply, unit qty * unit weight or item qty * item weight. Be careful not to
confuse the two quantities and measurements, for instance, item qty * unit weight would be
incorrect!

3. Storage Needs Calculation listed below:

Storage Needs Calculation

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1 litre of fluid equals 1 kg

1 MT = 1 Metric tonne = 1,000 Kgs

Add 30% for passageways and weight(kgs
ventilationvolume(m3
  unit ) )
 
Item   per unit per unit weight(kgs) 1 MT
        per piece
Plastic roll (Non Food
  sheeting 60x4m 55 0.19 Items)  
   
Vegetable oils in tin       1.7 m3
Flour, rice, sugar bales of   1.5 m3
Blankets
Grain 30 50 0.22   2.0 m3
 
Canned products         1.5 m3
Family
Milk tentsin tins
powder piece 85 0.29   3.0 m3
   
Roll Plastic Sheeting (60*4m)     55 3.5 m3
Kitchen sets piece
Blankets in pressed bales (30 per bale) 5 0.025 1.67 5.0 m3
 
Blankets  
in unpressed bales  (30 per bale)   1.67 10.0 m3
Jerrycans
Tents box of 55 5.0 m3
fold.
Clothing 40 38 0.3   10.0 m3
Box Kitchen utensils 5 4.5 m3
Jerry Cans (40 per box) 0.95 8.0 m3
Medical supplies (average)   4.0 m3

Example:
How many sq.m. of storage is needed for 100 tonnes of vegetable oils (in tin)?
When you have a storage height of 2 metres

Goods area : (1.7 x 100)/2 = 85 m2

Area needed: 85 m2 + 30% = 110 m2

Regards

Francois

To answer this task, you will find the following learning material section helpful:

2.2. Identifying Warehouse Requirements

2.11. Managing the Working Environment
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