IMPLEMENTATION AND UTILIZATION OF A DECENTRALIZED STORAGE-SYSTEM - COSTING MODEL

Companies using just-in-time principles are currently moving from cent ralized to decentralized storage areas. A question that needs to be ad dressed is whether this move cost efficient. Presents a costing model which can be used to determine ii further consideration should be give n to decentralized storage in a facility currently utilizing centraliz ed storage. Evaluates whether the savings in material handling flow co sts associated with moving from centralized to decentralized storage o utweighs the additional costs associated with implementing and utilizi ng decentralized storage for a designated period of time. Through the process of solving the cost model, a new layout will be created for th e decentralized storage system. The layout includes the placement of t he additional material storage and receipt areas as well as the rearra ngement of the other departments in the facility.