Warehouse Operations Ch 7

7/23/2019 Warehouse Operations Ch 7

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Warehouse Operations

Chapter # 07



Mission Of A Warehouse

• Improving order picking operations

• Utilizing cross-docking

• Increasing productivity

• Utilizing space

• Increasing value added services



Improving order picking operation

• Where a company spends more of its time and money

• To improve the productivity is the main goal

• Supply chain requirements drive the warehouse properly



Utilizing cross-docking

• Occur at different levels

• Like Manufacturer, Distributor, Retailor, Transportation leve• Each participants has different requirements



The receiver requests that the cross dock goods be

sorted and prelabeled

Example

If 100 items are ordered, the warehouse must

pick the 100 items and also separate those

items for the different store orders



Increasing productivity

• To do it faster with fewer people

• To maximize the effective use of space, equipment and labo

• Productivity is not just labor performance



Utilizing space

• Old rule, when a warehouse is 80% full, more space is neede

• The proper slotting of product starts to disappear

• Slow moving items in fast moving locations and vice versa

• End result decline in productivity due to poor space utilizatio



Increasing value added services

• Warehouses are no longer just picking and shipping

• Include services that facilitate more efficient operations

• Benefit the customer

• Like prelabeling goods





Functions in Warehouse

• Receiving

• Inspection and quality control

• Repacking

• Putaway

• Order picking

• Storage

• Postponement

• Sortation

• Packing and Shipping

• Cross docking



Receiving

Orderly receipt of all coming materials

Assuring the quality and quantity of ordered material

Disbursing material to storage and other organizational funct



Inspection and quality contro

• Extension of the receiving process

• when supplies are inconsistent in quality

• Product must be inspected regularly



Repacking

• When products are received in bulk form

• Packing singly

• Relabeling is done when products are without marking



Putaway

• Act of placing merchandise in storage

• Includes material handling and placement



RECEIVING & SHIPPING OPERATIONS

•

Receiving is collection of activities assuring quantity aof materials.

• Shipping includes packaging and checking orders for

completeness.

•

Carriers must be properly considered for these operatwith the activities of carriers.

• Receiving and shipping begin and end upon crossing t

line by carriers

•

Both warehouse operations are aimed for the organiz



RECEIVING & SHIPPING SPACE PLAN

The steps required for determining space requirements forthe above mentioned warehouse operations are:

1. Determine what is to be received and shipped

2. Determine the number and type of docks

3. Determine the space requirements for receiving and

shipping area within the facility.



What is to be received and shipp

• Implies information regarding what, when and how much of

shipped or received

• Identification of carrier types used for shipping and receiving

the carrier height width and length also with the height of th



Number & type of docks• Waiting line analysis helps determines the number & type of docks.

– If the arrival and service distribution are not much varied over time then wa

analysis helps addressing the problems of number

– If the arrival and service distribution vary over time then simulation techniq

• By type of dock we mean configuration, which has to be determined afte

the no. of docks.

– It considers the flow of carriers relative to the facility.

– For rail docks configuration of the railroad spur dictate the flow of railroads

configuration of rail dock

– For truck docks traffic patterns of trucks must be analyzed

– Different considerations are there for configuration of truck dock.



Determining shipping area require

Receiving and shipping department area requirements within a facilty mspace allocations for the following:

• Personnel convenience/office

• A receiving hold area

• Trash disposal and recycling bins

• Palletizing equipment

• The truckers lounge

• Buffer or staging areas

• Material handling and manuevering



Example 1

What are the roadway requirements to the east north and west of the fac

what space requirements are needed within the facility.







A total staging area is

{3(10) + 2(7)} x 52 = 2288 ft sq.

A truckers lounge of 150 ft sq. will be added.

The total space requirement will be



Dock operations Planning• Dock operation planning deals with equipment requireme

shipping and receiving which comprise of equipment suita

between carriers and docks.

The equipment are:

o Dock levers (Between a dock at given height and carrier

variable height)

o Bumper pads (Between a fixed dock and a movable carrieo Dock shelters (Between a heated dock and unheated carr



Storage space planning

• The maximum and average quantities of unit load

stored are directly related to method of controllininventory.

• There are two major storage philosophies:

– Fixed or assigned storage: Each individual SKU is store

in a specific location and no other SKU is placed in thatlocation even the location is empty.

– Randomized storage: Any SKU can be stored in any

available location in the inventory.



Example 2

l 3



Example 3Randomized vs dedicated storage

• With dedicated storage the required no. of spacesequals the sum of maximum inventory for each

individual item.• With randomized storage the no. of required the

required amount of spaces equals the maximumaggregate inventory level.

• Here is an example of 6 items in which –

No. of spaces with randomized storage = 105 pallets – No. of spaces with dedicated storage = 140 pallets

– Average inventory = 77.5

– Here one third more pallet position is required in dedicatedstorage as compared to randomized storage.





Example 5

Impact of aisle space on storage space utilization.• Honeycombing is the wasted space that results when a stack cannot be utilized because addin

would result in blocked storage.• Honeycombing determines losses in cube utilization due to use of aisles.

• When the losses in cube utilization have been determined space standards for unit loads may

Vertical

honeycombing

E l 6



Example 6

Determining optimum storage location based on item

popularity



Continued• The location of item along the main aisle depends on receiving/shipping ratio.

• If the ratio is equal to 1 then the no. trips for both operations are equal

• If the ratio is less than 1 then the trips for receiving are less than shipping and items are

placed near the shipping end.

• If the ratio is greater than 1 then the trips for receiving are more than shipping and items

are placed near the receiving end.





Principles of Order Picking

Regardless of size, mission, volume, inventory, customer requior type of control system of a warehouse operation the princip

equally to the order picking function.

1. Apply Pareto’s law

2. Use a clear, easy-to-read picking document

3. Use a prerouted preposted picking document

4. Maintain an effective stock location system

5. Eliminate ad combine order picking tasks when possible

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Warehouse Operations Ch 7