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WAREHOUSINGMANAGEMENTGaurav Narkhede | Josue Servalis | Mike Macas |
Praneetha Boda
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Part of firms logistics system that storesproducts at and between point of origin and
point of consumption.
Term Warehousing is referred as
transportation at zero miles per hour
Warehousing provides time and place utility forraw materials, industrial goods, and finished
products, allowing firms to use customer service
as a dynamic value-adding competitive tool.
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THE ROLE OF THE WAREHOUSE IN
THE LOGISTICS SYSTEM
The warehouse is where the supply chain holds
or stores goods.
Functions of warehousing include
Transportation consolidation
Product mixing
Docking
Service Protection against contingencies
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TYPE OF WAREHOUSING
Public Warehousing
Private Warehousing
Contract Warehousing
Multi-client Warehousing
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DESIGN CONSIDERATION
Ideal Facility for Pure Supplier
Consolidation
(Full Pallet Movement)
Warehouse Space
Requirements
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PRINCIPLES OF WAREHOUSE
LAYOUT DESIGN
Use one-story
facilities
Move goods in astraight line
Use efficient
materials-
handling
equipment
Use an effective
storage plan
Minimize aisle
space
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WAREHOUSE PROCESSPut-away
Identify Product
Identify Product Location
Move Products
Update Records
StorageEquipment
Stock Location
Popularity
Unit Size Cube
Shipping PreparationPacking
Labeling
Stacking
Order PickingInformation
Walk & Pick
Batch Picking
Shipping
Schedule Carrier
Load Vehicle
Bill of LoadingRecord Update
RECEIVINGSchedule Carrier
Unload Vehicle
Inspect for damage
INP
UT
OUT
PUT
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OBJECTIVES OF EFFICIENT
WAREHOUSE OPERATIONS
Provide timely customer service. Keep track of items so they can be found readily &
correctly.
Minimize the total physical effort & thus the cost of
moving goods into & out of storage.
Provide communication links with customers
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Benefits of Warehouse Management Provide a place to store & protect inventory
Reduce transportation costs
Improve customer service levels Complexity of warehouse operation depends on the
number of SKUs handled & the number of orders
received & filled.
Most activity in a warehouse is material handling.
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Capital costs Costs of space & materials handling
equipment
Operating costs
Cost of labor
Measure of labor productivity is the number ofunits that an operator can move in a day
COSTS OF OPERATING A WAREHOUSE
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WAREHOUSE ACTIVITIES Receive goods
Identify the goods
Dispatch goods to
storage
Hold goods
Pick goods
Marshal shipment
Dispatch shipment
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Accepts goods from Outside transportation or attached factory &
accepts responsibility
Check the goods against an order & the bill of
loading
Check the quantities Check for damage & fill out damage reports if
necessary
Inspect goods if required
Receive goods
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items are identified with the appropriate stock-
keeping unit (SKU) number (part number) &
the quantity received recorded
Identify the goods
Dispatch goods to storage goods are sorted & put away
Hold goods
goods are kept in storage & under proper
protection until needed
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Pick goods items required from stock must be selected
from storage & brought to a marshalling area
Marshal the shipment
goods making up a single order are brought
together & checked for omissions or errors; order
records are updated
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Dispatch the shipment orders are packaged, shipping documents are
prepared, & goods loaded on the vehicle
Operate an information system
a record must be maintained for each item in
stock showing the quantity on hand, quantity
received, quantity issued, & location in the
warehouse
M i i d ti it & i i i
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Maximize productivity & minimize
cost, warehouse management must
work with the following Maximize use of space
space is the largest capital cost
Effective use of labor & equipment labor is the largest operating cost
material handling equipment is the second
largest capital cost
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FACTORS INFLUENCING EFFECTIVE
USE OF WAREHOUSES
Cube utilization and accessibility Stock location
Order picking and assembly
Physical Control & Security - Elements
C b tili ti d
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Cube utilization and
accessibility
Goods stored not just on the floor, but in thecubic space of the warehouse; warehouse
capacity depends on how high goods can be
stored
Accessibility means being able to get at the
goods wanted with a minimum amount ofwork
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Cube utilization and accessibilitycontinued
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Stock Location
Objectives To provide the required customer
service
To keep track of where items are stored
To minimize effort to receive, put away,
and retrieve items Basic Stock Locating Systems
Group functionally related items
together
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Fixed Location
SKU assigned a permanent location, & no otheritems are stored there
Fixed-location systems usually have poor cube
utilization
Usually used in small warehouses; throughput is
small, & there are few SKUs
Floating (Random) Location
Goods stored wherever there is appropriate
space
Advantage is improved cube utilization
Stock Locationcontinued
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Stock Locationcontinued
Two other systems sometimes used are Point-of-use storage
Inventory stored close to where it will be
needed
Used in repetitive manufacturing & JIT
systems Central storage
Contains all inventory in one central location
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Advantages of Point-of-use Storage
Materials are readily accessible to users
Material handling is reduced or eliminated
Central storage costs are reduced
Material is accessible all the time
Stock Locationcontinued
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Advantages of Central Storage
Ease of control
Inventory record accuracy is easier to
maintain
Specialized storage can be used
Reduced safety stock, since users do not
need to carry their own safety stock
Stock Locationcontinued
O d Pi ki d
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Order Picking and
Assembly
When an order is received, items mustbe obtained from the warehouse,
grouped, & prepared for shipment,
systems used
Area system
Zone system Multi-order system
Order Picking and
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Area system
Order picker circulates throughout
warehouse selecting items on an order --
order is ready to ship when order picker is
finished
Zone system
Warehouse is divided into zones, & each
picker works only in an assigned zone --
Order Picking and
Assembly continued
Order Picking and
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Multi-order system
Same as the zone system, except that
each picker collects items for a number of
orders at the same time
Order Picking and
Assembly continued
PHYSICAL CONTROL & SECURITY
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PHYSICAL CONTROL & SECURITY -
ELEMENTS Good part numbering system
Simple, well-documented transaction system
Identify the item
Verify the quantity Record the transaction
Physically execute the transaction
Limited access Inventory must be kept in a safe, secure
(locked) place with limited general access
Well-trained workforce
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VIDEO
http://www.youtube.com/watch?v=
Cbj2d_0w24E
http://www.youtube.com/watch?v=Cbj2d_0w24Ehttp://www.youtube.com/watch?v=Cbj2d_0w24Ehttp://www.youtube.com/watch?v=Cbj2d_0w24Ehttp://www.youtube.com/watch?v=Cbj2d_0w24E7/30/2019 Warehousing Management Final_copy (3)
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Questio
ns ?
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THANK
YOU