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WAREHOUSING MANAGEMENT final_copy.ppt
- 1. WAREHOUSING MANAGEMENT Gaurav Narkhede |Josue Servalis | Mike Macas | Praneetha Boda
- 2. • Part offirms logistics system that stores products 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 for raw materials, industrial goods, and finished products, allowing firms to use customer service as a dynamic value-adding competitive tool.
- 3. THE ROLE OFTHE 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
- 4. TYPE OF WAREHOUSING •Public Warehousing • Private Warehousing • Contract Warehousing • Multi-client Warehousing
- 5. DESIGN CONSIDERATION Ideal Facilityfor Pure Supplier Consolidation (Full Pallet Movement) Warehouse Space Requirements
- 6. PRINCIPLES OF WAREHOUSELAYOUT DESIGN
- 7. WAREHOUSE PROCESS Put-away •Identify Product •IdentifyProduct Location •Move Products •Update Records Storage •Equipment •Stock Location –Popularity –Unit Size –Cube Shipping Preparation •Packing •Labeling •Stacking Order Picking •Information •Walk & Pick •Batch Picking Shipping •Schedule Carrier •Load Vehicle •Bill of Loading •Record Update RECEIVING •Schedule Carrier •Unload Vehicle •Inspect for damage INPUT OUTPUT
- 8. OBJECTIVES OF EFFICIENTWAREHOUSE 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
- 9. • Benefits ofWarehouse 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.
- 10. • Capital costs —Costsof space & materials handling equipment • Operating costs —Cost of labor —Measure of labor productivity is the number of units that an operator can move in a day COSTS OF OPERATING A WAREHOUSE
- 11. WAREHOUSE ACTIVITIES • Receivegoods • Identify the goods • Dispatch goods to storage • Hold goods • Pick goods • Marshal shipment • Dispatch shipment • Operate an information system
- 12. • Accepts goodsfrom ‒ 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
- 13. ‒ items areidentified 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
- 14. Pick goods ‒ itemsrequired 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
- 15. 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
- 16. 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
- 17. FACTORS INFLUENCING EFFECTIVEUSE OF WAREHOUSES • Cube utilization and accessibility • Stock location • Order picking and assembly • Physical Control & Security - Elements
- 18. Cube utilization andaccessibility ‒ Goods stored not just on the floor, but in the cubic 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 of work
- 19. Cube utilization andaccessibility continued…
- 20. 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 – Group fast-moving items together – Group physically similar items together – Locate working stock and reserve stock separately
- 21. • Fixed Location –SKU assigned a permanent location, & no other items 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 – It requires accurate and up-to-date information – Warehouses using floating-location systems are usually computer-based Stock Location continued…
- 22. Stock Location continued… •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
- 23. • Advantages ofPoint-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 Location continued…
- 24. • Advantages ofCentral 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 Location continued…
- 25. Order Picking andAssembly • When an order is received, items must be obtained from the warehouse, grouped, & prepared for shipment, systems used – Area system – Zone system – Multi-order system
- 26. • 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 is divided by zone, & the items from each zone are sent to the marshaling area Order Picking and Assembly continued…
- 27. • 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…
- 28. 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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