...Georgia Institute of Technology, 765 Ferst Dr., Atlanta, GA 30332-0205, United States a r t i c l e i n f o a b s t r a c t This paper presents a detailed survey of the research on warehouse design, performance evaluation, practical case studies, and computational support tools. This and an earlier survey on warehouse operation provide a comprehensive review of existing academic research results in the framework of a systematic classification. Each research area within this framework is discussed, including the identification of the limits of previous research and of potential future research directions. Ó 2009 Elsevier B.V. All rights reserved. Article history: Received 5 December 2005 Accepted 21 July 2009 Available online 6 August 2009 Keywords: Facilities design and planning Warehouse design Warehouse performance evaluation model Case studies Computational tools 1. Introduction This survey and a companion paper (Gu et al., 2007) present a comprehensive review of the state-of-art of warehouse research. Whereas the latter focuses on warehouse operation problems related to the four major warehouse functions, i.e., receiving, storage, order picking, and shipping, this paper concentrates on warehouse design, performance evaluation, case studies, and computational support tools. The objectives are to provide an all-inclusive overview of the available methodologies and tools for improving warehouse design practices and to identify...
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...Warehouse Management Systems (WMS) The evolution of warehouse management systems (WMS) is very similar to that of many other software solutions. Initially a system to control movement and storage of materials within a warehouse, the role of WMS is expanding to including light manufacturing, transportation management, order management, and complete accounting systems. To use the grandfather of operations-related software, MRP, as a comparison, material requirements planning (MRP) started as a system for planning raw material requirements in a manufacturing environment. Soon MRP evolved into manufacturing resource planning (MRPII), which took the basic MRP system and added scheduling and capacity planning logic. Eventually MRPII evolved into enterprise resource planning (ERP), incorporating all the MRPII functionality with full financials and customer and vendor management functionality. Now, whether WMS evolving into a warehouse-focused ERP system is a good thing or not is up to debate. What is clear is that the expansion of the overlap in functionality between Warehouse Management Systems, Enterprise Resource Planning, Distribution Requirements Planning, Transportation Management Systems, Supply Chain Planning, Advanced Planning and Scheduling, and Manufacturing Execution Systems will only increase the level of confusion among companies looking for software solutions for their operations. Even though WMS continues to gain added functionality, the initial core functionality...
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...Warehouse Management Systems (WMS). By Dave Piasecki © Copyright. Content on InventoryOps.com is copyright-protected and is not available for republication. The evolution of warehouse management systems (WMS) is very similar to that of many other software solutions. Initially a system to control movement and storage of materials within a warehouse, the role of WMS is expanding to including light manufacturing, transportation management, order management, and complete accounting systems. To use the grandfather of operations-related software, MRP, as a comparison, material requirements planning (MRP) started as a system for planning raw material requirements in a manufacturing environment. Soon MRP evolved into manufacturing resource planning (MRPII), which took the basic MRP system and added scheduling and capacity planning logic. Eventually MRPII evolved into enterprise resource planning (ERP), incorporating all the MRPII functionality with full financials and customer and vendor management functionality. Now, whether WMS evolving into a warehouse-focused ERP system is a good thing or not is up to debate. What is clear is that the expansion of the overlap in functionality between Warehouse Management Systems, Enterprise Resource Planning, Distribution Requirements Planning, Transportation Management Systems, Supply Chain Planning, Advanced Planning and Scheduling, and Manufacturing Execution Systems will only increase the level of confusion among companies looking for software...
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...the United States, Canada and Mexico. It goes without saying that PBC moves a tremendous amount of product every day. In doing so, executives came to the painful conclusion that with ever growing sales and SKUs, the walls of the company's warehouses and distribution centers figuratively were bursting at the seams. Enter the Warehouse Infrastructure Initiative, which for all practical purposes was an attempt to re-engineer the old mousetrap; in this case, to make it bigger. When all was said and done, that effort was set aside in favor of the highly innovative - and successful - Direct-to-Store Delivery Transformation Initiative. Here are the benefits, according to Timothy Thornton, PBC vice president, supply chain logistics: The distribution strategy that ultimately resulted delivers more than product. "Breakthrough warehouse cost savings" flow as well. In addition, the model has reduced inventory system-wide, eliminated warehouse space constraints and provides the key for unlimited SKU growth. Leveraging new case-picking order-fulfillment automation technology and combining its homegrown order management tools enabled PBC to "crack the code" on...
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...Management System and its cost. Then the different technologies that are used in the warehouse are explained followed with the benefits of each and the conclusion. 1 Introduction For centuries there has been a need for warehousing. Most of every product or item that one will acquire will pass through at least one warehouse before it ends up on a store shelf. With the need for warehouses increasing, there comes the need for the technology to run those warehouses to become more efficient. Warehouses have gone from being a small facility to being hundreds of thousands of square feet and can house thousands of different products and items. This is where new advances in Warehouse Management Systems come into play. There are many picking and storage systems and software available in the market today. This has not always been the case when it comes to warehousing. In order for the efficiency of a warehouse to become better the warehouses have to grow around the new technologies that are being offered. Warehouse efficiency has been the main focus for management in today’s global market and the need to be able to move product through the warehouse as quickly as possible is more important than ever before. The need to increase of the accuracy and productivity of order pulling is greater than ever before and so the need for new technologies is greater than before. In this paper we will discuss the history of warehousing, the Warehouse Management System, the...
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...amazon global fullfilment strategyAmazon.com Supply Chain This area of the paper focuses on Amazon.com's supply chain and how it supports their business in the internet retailing environment. First, we have discussed Amazon.com's different operating models and explained the different supply chains that support those business models. After the business and supply chain models are defined we have discussed Amazon.com's supply chain network, inventory segmentation strategies, order sourcing decisions, overall replenishment and fulfillment process flows, intra-warehouse process flows, and transportation policies. This report analyzes the overall Amazon.com supply chain for United States distribution with a specific emphasis on the Media product segment. Amazon.com US Retail Product Segment Books, CDs, and DVDs and magazine subscriptions comprise the media product line at Amazon.com (Amazon.com 2002 Annual Report). Amazon.com began as an online bookseller and its first product line expansions were music and movies. As a result, the Media segment comprises a large percentage of Amazon.com overall revenues. In 2004, Media accounts for 74% of all revenues. Within the US, the Media segment accounts for 67% of all revenues. In dollar terms, the Media segment in the US generated $2.6 billion in revenue in 2004, compared 115 to $3.8 billion generated across all segments in the US (Amazon.com 2004 10-K Report). The pie chart below shows the breakout of revenue percentages by product and...
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...Introduction Warehouse management is part of logistic and supply chain management system which is a vast and critical process. With the change of business nature due to globalization the complexity of warehouse management has increased more. As much of the business success of today’s competitive world depends on effective logistic and supply chain management system companies are relying more on integrated computerised system to manage their warehouse function more effective and efficiently. SAP Warehouse Management System is one of those kinds of solution which fulfil all the requirement of today’s business need. The system is flexible and provides automated support to process warehouse activities. It includes planning, monitoring and controlling. As a result there has been remarkable improvement in the warehouse management process with speed and accuracy. Warehouse Management Warehouse management (WM) is an integrated process of managing all activities of a warehouse. Prime consideration of warehouse management is to manage the movement and storage of materials within a warehouse and process related transactions including shipping, receiving, put away and picking of materials or goods (Wikipedia 2011). Warehouse management is no longer limited to the boundaries of a particular warehouse. A wide range of activities have been incorporated to this process. These are inventory management and planning, cost management, container storage, loading and unloading of goods, warehouse...
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..."distribution centers". "Order processing" is the term generally used to describe the process or the work flow associated with the picking, packing and delivery of the packed item(s) to a shipping carrier. The specific "order fulfillment process" or the operational procedures of distribution centers are determined by many factors. Each distribution center has its own unique requirements or priorities. There is no "one size fits all" process that universally provides the most efficient operation. Some of the factors that determine the specific process flow of a distribution center are: * The nature of the shipped product - shipping eggs and shipping shirts can require differing fulfillment processes * The nature of the orders - the number of differing items and quantities of each item in orders * The nature of the shipping packaging - cases, totes, envelopes, pallets can create process variations * Shipping costs - consolidation of orders, shipping pre-sort can change processing operations * Availability and cost and productivity of workforce - can create trade-off decisions in automation and manual processing operations * Timeliness of shipment windows - when shipments need to be completed based on carriers can create processing variations * Availability of capital expenditure dollars - influence on manual verses automated process decisions and longer term benefits * Value of product shipped - the ratio of the value of the shipped product and the...
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...Warehousing in logistics system Name Institution The role of warehousing in logistics system A warehouse is the building for storing goods while warehousing refers to the place or building where goods are stored. Warehousing plays the role of consolidation in the logistics system. Consolidation is the process of reducing the costs of transportation by consolidating the movement (Ross, 2004). Most of the companies supply their client with the same goods through a warehouse. From the warehouse; commodities are sent in a bulk shipment to the consumer. Therefore, rather than transporting the products in small shipment, it is economical having a consolidation warehouse. Safety stocking is another role of warehousing. In meeting different contingencies like stock outs or delays in the transportation, safety stocks should be maintained (Voortman, 2004). Safety stocking ensures that the inbound site of production does not arise, and the needs and requirements of the consumers are fulfilled in time as planned. Docking also enables the issue of full shipment from different suppliers like manufacturer and the process of distributing directly to the consumer without storage in the warehouse (Ross, 2004). After receiving the shipment, the products are located to the respective clients and moved to the vehicle for onward delivery to relevant consumers. Product mixing role enables the company...
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...Integrated Visual Systems Shining the light on technology Krispy Kreme Doughnut case study Purchasing a secret yeast-raised doughnut recipe from a French chef in New Orleans, Vernon Rudolf opened the first Krispy Kreme in Winston-Salem, NC in July of 1937. The plan was to supply doughnuts to local grocery stores, but customers soon started inquiring about purchasing hot doughnuts. A hole was cut in a wall of the store and he started selling “Hot Original Glazed” doughnuts directly to customers. Currently, Krispy Kreme produces more than 7 million doughnuts a day. There are 357 retail stores in the US and Canada. All the ambient temperature ingredients and store supplies are shipped from the company’s distribution warehouses in NC, IL, and CA. In October 2002, they shipped their first load of mix to Australia and have added locations in the UK, Korea and Mexico. The original project, installed in March of 1999, automated what was at that time the lone distribution warehouse in Winston-Salem, NC. The goal was to eliminate the manual/paper-based system and go to a real-time, RF-based pick and ship process. Krispy Kreme runs the Macola Progression Series ERP system and needed a WMS that would interface directly to it and provide updates on a real-time basis for inventory, order status, etc. To accomplish the task, IVS developed a Macola interface module that posts transactions to Macola as they occur in the warehouse. ““We have seen an ROI in labor reductions, freight savings...
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...Managerial Decision Making, Case 2, Greetings Inc. Activity Based Costing |Case 2 | | Greetings Inc.: Activity-Based Costing | |This case is from the book: Managerial Accounting: Tools for Business Decision | |Making, 5th Edition | |Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso | |©2010 | |And was answered by some students. | | | | | 1. Activity Based Costing benefits businesses that are more complex in nature. In this case, Greetings. INC has added a new product line, Wall Decor, which permits them to grow without expanding their physical stores; however, they have significantly raised their overhead costs by multiplying their cost drivers. Not to mention the fact that they have incorporated a largely automated system into their product line, which we know calls for an ABC system. The main reason to move to ABC though, I’d say, would be because it will allow management to make better decisions and move away from the “cash machine” and “lemonade stand” metaphor simply because overhead costs will be allocated in such a way that corresponds to either framed or unframed prints instead of considering the same overhead for both products. By doing so managers will be able to price the prints competitively while still maintaining a profitable margin. An activity-based costing system may be appropriate for Wall Décor, when overhead allocation based job-order costing provides product cost distortion. Wall Décor should change its costing system for selling its high volume...
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...|Case 2 | | Greetings Inc.: Activity-Based Costing | |This case is from the book: Managerial Accounting: Tools for Business Decision | |Making, 5th Edition | |Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso | |©2010 | |And was answered by some students. | | | | | 1. Activity Based Costing benefits businesses that are more complex in nature. In this case, Greetings. INC has added a new product line, Wall Decor, which permits them to grow without expanding their physical stores; however, they have significantly raised their overhead costs by multiplying their cost drivers. Not to mention the fact that they have incorporated a largely automated system into their product line, which we know calls for an ABC system. The main reason to move to ABC though, I’d say, would be because it will allow management to make better decisions and move away from the “cash machine” and “lemonade stand” metaphor simply because overhead costs will be allocated in such...
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...Forum TCS - Retail Journal July 2015 | Issue 6 Omni-Channel Supply Chain: From Backend to Forefront Foreword Pratik Pal President & Global Head Retail, CPG, Travel, Transportation & Hospitality Welcome to the sixth edition of Forum, the TCS Retail Thought Leadership journal. In this issue, we present our perspective on the changes shaping the supply chain of tomorrow. Retailers all over the world are making the transition from multichannel to omni-channel. The key to delivering the ‘order anywhere, fulfill anywhere’ promise is the supply chain. Supply chain is poised to become the key influencer of the interconnected customer experience. Based on my interactions with leading retailers across the world, it is my view that the battle for omni-channel supremacy will be fought and won on the grounds of supply chain. Retailers across the world are focused on re-architecting and recalibrating their supply chains while maintaining the delicate balance between customer experience and profitability. While earlier, significant investments were directed toward digital customer engagement, in the times ahead, investments will predominantly focus on supply chain re-imagination. In this edition, we discuss the prominent challenges and the response needed across key areas spanning the entire value chain as well as the building blocks for enabling omni-channel supply chain. The ‘plan-buy-make–move–sell’ value chain is no more linear. While the ’sell’ component of...
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...Solutions Manual to accompany Accounting Information Systems 4e Brett Considine, Alison Parkes, Karin Olesen, Yvette Blount & Derek Speer by Alison Parkes John Wiley & Sons Australia, Ltd 2013 Chapter 9: Transaction cycle – the revenue cycle Discussion Questions 9.1 Brisbane Ltd has always had a strategy of product differentiation; that is, providing high quality products and extracting a price premium from the market. During the recent economic downturn, Brisbane Ltd has seen its customer base diminish and has decided to move strategically to a cost leadership strategy, that is, to try to sell more products at a lower price. (a) What are the implications of this strategy change for the revenue cycle? (LO1). This strategy change will have big implications for the revenue cycle, which is fundamentally driven by the level of sales. All existing policies and procedures will be geared around volume, pricing and quality targets flowing from the product differentiation (high price / high quality) strategy. To move to a cost leadership (high volume / low price) strategy requires revisiting and realigning existing policies and procedures. (b) What changes would you expect to see in the revenue cycle? (LO4). Assessing changes in the order of the processes in the revenue cycle: 1.1 The inventory check would be performed as described however the policy relating to tolerances on inventory decisions may alter, allowing Brisbane Ltd to...
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...STUDENT NAME: ANAS ASWAT BIN YAHYA ID STUDENT: 2014415066 COURSE: OPERATION MANAGEMENT CASE STUDY 1: LEMAN ETHICS CASE STUDY 2: VENUS PAPER PRODUCTIONS CASE STUDY 3: MORTON AEROSPACE LECTURER: DR. ALWI SHABUDIN SUBMITTED: 19.12.2015 Case 1: Leman Ethics 1. Identify and discuss the major issue(s) in the case. i) Leman’s dilemmas on unusual opportunity vs. ethics of Leman’s organization. ii) Leman’s proposal to make-to-hold arrangement, with result approximately 10% saving. 2. What are the key facts of the case? i) Perjawa Steel is one of the distributors ii) There is a luxurious treatment offered by the Perjawa Steel on the trip iii) Perjawa Steel is taking an advantage on the trip by giving the luxurious treatment to the buyers. 3. What is the main problem in the case? i) The ethical problem is as opposed to the process in determining the best solution for the best operation management. 4. What alternatives should you consider when addressing this problem? i) Same proposal should be addressed to other distributors. ii) The balance between the right ethical conduct and the personal interest in that come to conflicting Leman in making wise decision. 5. How would you decide on the issue? i) The decision making should be based on the economic viability and...
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