2005-2006 Design Competition Summary
Sponsored by CICMHE and Modern Materials Handling
magazine. Thanks to Gross & Associates for developing
the case based on an actual project.
Contest Case Description
The management of Dragon Duds charged the design teams with
the responsibility of solving their operational problems by
designing a more space efficient and productive layout that
will accommodate their warehousing and distribution
requirements for the next five (5) years.
Dragon Duds is a retailer operating 500 stores, primarily
located in strip malls and shopping centers. They currently
lease 160,000 square feet in a 320,000 square foot facility in
New Bern, North Carolina. The facility features 32'-0" of
available clear stacking height (including clearances required
for overhead sprinklers). The columns in the building are
spaced out 40'-0" by 50'-0", with dimensions of 12" x 12". Five
(5) years remain on the lease. The facility lease cost is
$7.50/square foot/year net. Product is stored in (and picked
from) double deep pallet racks and bulk floor stacks. Stores
are being added at the rate of 50 per year.
A supply chain optimization program is being undertaken; the
company expects average inventory turns to increase from the
current level of 3.5 turns to 7.0 turns within 5 years. The
number of SKUs being stored and carried by the facility is not
expected to increase. Sales per store are expected to increase
by 5% per year. The tenant in the adjacent 160,000 square feet
is moving out in 4 months. The building owner has offered to
lease DRAGON DUDS either all or half of this space at
$7.50/square foot/year, with a lease that expires at the same
time as the lease on their existing space. DRAGON DUDS would
then have an option for 5 more years at the same lease
rate.
Judging
The three academic and two industry judges evaluated the
entries according to the criteria of product flow, equipment
utilization, space utilization, operational plan, overall
integration and economic justification. Additionally, the
judges were asked to evaluate writing quality, analysis and
presentation.
The Results
First Place ($1500 split among the team plus $500
for the department):
Ryan Briley, Emily Curtis, Jessica Davis, and Amy
Zeh
Auburn University
Dr. Kevin Gue and Dr. Alice Smith, Advisors
Second Place ($1000 split among the team plus $500
to the department):
Shannon Burger, Katherine Klapacz, Kevin Klingensmith, and
Stephanie Zagarella
Penn State University
D. J. Medeiros, Advisor
Third Place ($500 split among the team plus $500 to
the department):
Rebecca Ciupak, Amelia Hall, John Simpsen, and Guillermo
Vesga
University of Oklahoma Simin Pulat, Advisor
Honorable Mentions:
Adam Christensen, Collin Hamilton, Jeesoo Lee, and Chris
Stoddard
California Polytechnic State University
Liz Schlemer, Advisor
James Letts, Nicolette McGeorge, Jessica Stalker, and
Greg Tauer
Rochester Institute of Technology
Dr. Andres Carrano, Advisor
Spencer Revenson, Stephen Shearer, Mallory Soldner, and
Mariam Waheed
Virginia Polytechnic Institute and State University
Leonardo Rivera and Natalie Cherbaka, Advisors