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Warehouse Management

Warehousing management involves storing products between the point of origin and consumption. Warehouses hold goods in the supply chain and provide functions like transportation consolidation and product mixing. Effective warehouse design considers factors like facility layout, storage plans, and material handling equipment. Key activities include receiving and inspecting goods, identifying products, storing in designated locations, order picking, and shipping. Proper stock location and order fulfillment processes help maximize productivity and minimize costs in warehouse operations.

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ASHOK SUTHAR
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221 views31 pages

Warehouse Management

Warehousing management involves storing products between the point of origin and consumption. Warehouses hold goods in the supply chain and provide functions like transportation consolidation and product mixing. Effective warehouse design considers factors like facility layout, storage plans, and material handling equipment. Key activities include receiving and inspecting goods, identifying products, storing in designated locations, order picking, and shipping. Proper stock location and order fulfillment processes help maximize productivity and minimize costs in warehouse operations.

Uploaded by

ASHOK SUTHAR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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WAREHOUSING MANAGEMENT

■ Part of firms 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.
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
TYPE OF WAREHOUSING

• Public Warehousing

• Private Warehousing

• Contract Warehousing

• Multi-client Warehousing
DESIGN CONSIDERATION

Ideal Facility for Pure Supplier Consolidation Warehouse Space Requirements


(Full Pallet Movement)
PRINCIPLES OF WAREHOUSE LAYOUT DESIGN

Use one-story facilities

Move goods in a straight


line

Use efficient materials-


handling equipment

Use an effective storage


plan

Minimize aisle space

Use maximum height of


the building
RECEIVING
INPUT •Schedule Carrier
•Unload Vehicle
•Inspect for damage

WAREHOUSE PROCESS
Storage
Put-away
•Equipment
•Identify Product
•Stock Location
•Identify Product Location
– Popularity
•Move Products
– Unit Size
•Update Records
– Cube

Shipping Preparation Order Picking


•Packing •Information
•Labeling •Walk & Pick
•Stacking •Batch Picking

Shipping
•Schedule Carrier
•Load Vehicle OUTPUT
•Bill of Loading
•Record Update
•
OBJECTIVES OF EFFICIENT
Provide timely customer service.
WAREHOUSE OPERATIONS
• 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
■ 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.


COSTS OF OPERATING A WAREHOUSE
• Capital costs
— Costs of 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
WAREHOUSE ACTIVITIES
• Receive goods

• Identify the goods

• Dispatch goods to storage

• Hold goods

■ Pick goods

■ Marshal shipment

■ Dispatch shipment

■ Operate an information system


Receive goods
• 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
Identify the goods
‒ items are identified with the appropriate stock-keeping unit (SKU)
number (part number) & the quantity received recorded

Dispatch goods to storage


‒ goods are sorted & put away

Hold goods
‒ goods are kept in storage & under proper protection until needed
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
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
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
FACTORS INFLUENCING EFFECTIVE USE OF WAREHOUSES
• Cube utilization and accessibility
• Stock location
• Order picking and assembly
• Physical Control & Security - Elements
Cube utilization and accessibility

‒ 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
Cube utilization and accessibility continued…
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
Stock Location continued…
• 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…

• 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
Stock Location continued…
• 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 Location continued…
• 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
Order Picking and Assembly

• 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
Order Picking and Assembly continued…
– 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…
– Multi-order system

– Same as the zone system, except that each picker collects


items for a number of orders at the same time
PHYSICAL CONTROL &
– Good part numbering system
SECURITY - ELEMENTS
– 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
VIDEO

http://www.youtube.com/watch?v=Cbj2d_0w24E
Questions ?
THANK YOU

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