A Warehouse Design With Containers For Humanitarian Logistics: A Real-Life Implementation From Turkey

Abstract

The purpose of this study is to investigate how and at what cost freight containers could be used as an inventory holding mechanism for humanitarian logistics. The layout and cost comparison of two alternatives are performed-stocking in a warehouse and material storage in containers. An optimum layout for storage in containers is proposed. It was found that container stockpiling uses the available area and space better than the warehouse option to stock the same number of material pallets. Leasing and purchasing costs of these alternatives are compared using present worth analysis. The results revealed that the container leasing option is not cost effective when land cost is included. Warehouse leasing results in the least setup cost, however, it incurs more operating costs, including lighting, ventilation, and maintenance as well as handling of the pallets. A real-life implementation of the proposed container stockpiling idea is presented for Turkey.