...Warehouse by Ed Acker Steven Winter Associates, Inc. Last updated: 04-23-2008 Overview Warehouses, defined here, are facilities that provide a proper environment for the purpose of storing goods and materials that require protection from the elements. Warehouses must be designed to accommodate the loads of the materials to be stored, the associated handling equipment, the receiving and shipping operations and associated trucking, and the needs of the operating personnel. The design of the warehouse space should be planned to best accommodate business service requirements and the products to be stored/handled. The economics of modern commercial warehouses dictate that goods are processed in minimal turnaround time. The different types of warehouses include: * Heated and unheated general warehouses—provide space for bulk, rack, and bin storage, aisle space, receiving and shipping space, packing and crating space, and office and toilet space; * Refrigerated warehouses—preserve the quality of perishable goods and general supply materials that require refrigeration. Includes freeze and chill space, processing facilities, and mechanical areas; and * Controlled humidity (CH) warehouses—similar to general warehouses except that they are constructed with vapor barriers and contain humidity control equipment to maintain humidity at desired levels. Special-designed warehouses meeting strict requirements can also provide liquid storage (fuel and nonpropellants), flammable...
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...that make up the rest of the market share include Gordon Food Service (GFS) and U.S. Foods, which is Sysco’s largest competitor nationwide. Sysco Grand Rapids sees the competition a little differently locally than the company does as a whole, with GFS being their largest competitor. The reason GFS is the largest competitor in Grand Rapids is because they do not serve the entire nation, rather they are more prevalent in the Midwest states. Sysco, however, does differ from the competition greatly and definitely stands out to their current customers and potential prospects. Sysco does more than just deliver food to the establishments at the time they need it, they actually work personally with the business. From helping customers design restaurants and kitchen layouts, to marketing the establishment and even helping with...
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...Solved Questions |1 |Distinguish between warehouses and distribution centers. | | | | | |Warehouses emphasize the storage of products and their primary purpose is to maximize the use of storage space. In | | |contrast, distribution centers emphasize the rapid movement of products through a facility and thus attempt to maximize| | |throughput (the amount of product entering and leaving a facility in a given time period). | |2 |Explain the four ways that warehousing facilitates the regrouping function. | | | | | |Regrouping involves rearranging the quantities of products as they move through the supply chain and it takes four | | |forms: accumulating (also referred to as bulk-making), allocating (also referred to as bulk-breaking), assorting, and | | |sorting. | | |Accumulating involves bringing together similar stocks from different sources, while allocating involves breaking ...
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...Problem 1 (a) Why is the receiving staff in a typical warehouse much smaller than the staff of order-pickers? The receiving staff in a typical warehouse is much smaller than the staff of order pickers because restockers move larger quantities of SKUs, so a few receivers can keep many pickers supplied. A rule of thumb is that there should be one receiver for every five order pickers. Receivers usually handle products in larger units and order pickers handle products in smaller units. Order picking is significantly more labor intensive and resistant to automation. (b) Explain the difference between popularity and demand. Demand is considered the forecasted frequency of SKUs and popularity are the A items that have a high frequency and are picked and packaged often. For example, a Christmas related SKU will have a high demand during the holiday season but is certainly not popular other seasons. (c) What is “batch picking” ? Give a pro and a con of batch picking. Batch picking is when each worker retrieves many orders in one trip. An advantage of batch picking is that it is a way to increase the pick density. However, a disadvantage is that it requires that the items be sorted into orders while picking or somewhere else downstream. If they are sorted into orders during picking, pickers are slowed down because they must carry a container for each order and they must sort the items as they pick, which leads to time being wasted and can result in errors. If the...
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...System features Check out and in, data import, mapping, maintenance, analytics, alerts, signature, active directory, asset depreciation, reporting, routing, reservations, up look up according to Elie Jean Touma and Greg Wachowiak. They develop the system entitled Bookstore Inventory System Software Design Document. This document provides a comprehensive architectural overview of the system, using a number of different architectural views to depict different aspects of the system. It is intended to capture and convey the significant architectural decisions that have been made on the system. The system features view books, manage books, manage customer info, return rental, change name and change address according to Gerson Recinos, Ho Nam Ho, Jimar Miller, Adam Wurtzel, David Altum, Francisco Diaz and Finan Bariagabr. Local Literature They develop the system entitled Circuit Warehouse Management System. It’s a web-based application that allows users to manage the company's supply chain and enhance customer satisfaction by providing reliable information about inbound / outbound delivery as well as current inventory levels. Tracking of items - inventory, quantity at each warehouse, movement history, stocking status are all...
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...WAREHOUSE ACTIVITY PROFILING: MINING FOR GOLD CHAPTER 2 Warehouse activity profiling • Warehouse activity profiling is the systematic analysis of item and order activity. • The activity profiling process is designed to quickly identify root causes of material and information flow problems, to pinpoint major opportunities for process improvements, and to provide an objective basis for project-team decision making. PROFILING MOTIVATIONS AND MINEFIELDS • Profiling Pays ▫ Done properly, profiling quickly reveals warehouse design and planning opportunities that might not naturally be in front of you. • You can drown in a shallow lake — on average ▫ If we are not careful to plan and design based on distributions as opposed to averages, the entire planning and design process will be flawed. That is why it is so important to go to the extra step to derive these profile distributions. As you start to look at the profiles of customer orders, purchase orders, item activity, inventory levels, and so on, the creative juices begin to flow for everyone on the project team. Everyone on the project team starts making good decisions and generating new ideas. In profiling, we are trying to capture the activity of the warehouse in pictorial form so we can present the information to management and so we can make quick consensus decisions as a team. A full, yet minimum set of profiles required to plan and design warehouse operations follows. This profile set is a synthesis of profiles...
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...Task 1 The Warehouse Group Limited which is the largest retail group operating company in New Zealand which selling a wide range of grocery and non-grocery products at a discounted price to customers. It was founded by Stephen Tindall in 1982 and went on publicly in 1995, traded on the New Zealand Stock Exchange. The company currently operates under three different divisions that consist of The Warehouse New Zealand (Red Sheds), The Warehouse Stationary (Red Sheds) and Noel Leeming. Other than the retail locations, it also has two distribution centres to assist the daily operations in Wiri and Rolleston, New Zealand. In 2000, the Warehouse Group Limited exploited the Australian retail market. Due to the low market sale and underperforming, The Warehouse Group announced to sell the business and renamed as Sam’s Warehouse.The Warehouse Group follows its clearly corporate strategy and makes a good progress. To keep its Red Sheds core strong and develop their Blue Sheds as well as their Red Sheds, and leverage the group competencies and scale to lead the New Zealand’s retail group services company in the foreseeable future. (Wikipedia, 2014) Task 2 For the customers who are willing to purchase at Warehouse, their basic and minimum requirements of the performance are that standard quality of products. The Warehouse Limited required is to provide the quality source of purchasing in order to achieve their order qualifier. The corporation will be out of the market if they cannot...
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...Future of Warehouse Design being shaped by Warehouse Science The current scenario of Indian warehousing design is optimistic as it is fast picking up the western practices and technology. However there is still a wide disparity across the whole of India. Some warehouses which are owned by rich MNCs are of high standards, on the other hand, there are also many warehouses which are of low standards. Many warehouses in India are constrained by small spaces. Unlike large warehouses owned by MNCs in the USA and Europe have area of 250,000 to 1-million-square-feet, generally the large of warehouses in India are quite small in comparison, between 5,000 and 25,000 square feet. This is due to less demand, expensive land at the outskirts of a major city in India and difficulty to acquire large piece of lands due to many owners of a small pieces of land. In addition, the demand for storage of products is much lesser than compared to western countries. The warehouse structures are not properly Inefficient space utilisation is also a huge problem as many warehouses in India don’t have proper shelving system and the floors are dirty because it is not cemented. In addition, considerable number of warehouses lack the basic semi-automated equipment such as MHEs, conveyors, dock levellers, for movement of goods inside the warehouse. Fully - automated machines and systems are very rare to be found in India. Automatic sorting and automatic packaging systems (which include pouching, carton...
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...Review of Warehouse Receipt System and Inventory Credit Initiatives in Eastern & Southern Africa Final report commissioned by UNCTAD under the All ACP Agricultural Commodities Programme (AAACP) *The views expressed in this paper are those of the author and do not necessarily reflect the views of the United Nations September 2009 CONTENTS CONTENTS ............................................................................................................................................. i ACKNOWLEDGEMENT .....................................................................................................................iii GLOSSARY OF ABBREVIATIONS .................................................................................................. iv GLOSSARY OF ABBREVIATIONS .................................................................................................. iv SUMMARY ............................................................................................................................................ 1 Introduction ....................................................................................................................... 1 Observations on the different approaches ......................................................................... 1 Policy conclusions and recommendations ........................................................................ 3 Specific proposals .....................................................................
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...a wage rate 3 times as high as that in the foreign country. * These relationships imply that both countries have a cost advantage in production. * The cost of high wages can be offset by high productivity. * The cost of low productivity can be offset by low wages. * Because foreign workers have a wage that is only 1/3 the wage of domestic workers, they are able to attain a cost advantage (in wine production), despite low productivity. * Because domestic workers have a productivity that is 6 times that of foreign workers (in cheese production), they are able to attain a cost advantage, despite high wages. 2. In terms of warehousing design, give examples of trade-offs involving space, labour, and the use of automation. Why is it important to undestand these trade-offs? * One key to effective design of warehouse processes is the relative dominance between picking and storage activities because these two warehousing functions typically have opposing requirements. Techniques that maximize space utilization tend to complicate picking and render it inefficient while large storage areas increase travel distances which reduces picking efficiency. Ideal picking requires small stocks in dedicated, close locations * Automation of picking, storage, handling and information can compensate for these opposing requirements to a degree. However, automation is expensive to...
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...1. A233 parts Weekly demand=32,LT=1 week,Price=$18/unit,Ordering cost=$16/unit Demand per year=32x52=1664 *D=demand,Q=quantity,Oc=Ordering cost,P=Price. EOQ=>Ordering cost= Carrying cost=>(D/Q) x Oc=(Q/2) x P x 23%=>1664/Qx16=(Q/2) x 18 x 23%=>114 A) When Q=EOQ=114, Ordering cost=1664/114x16=$233.54 Carrying cost=(114/2) x18 x23%=$235.98 Therefore total cost= Ordering cost + Carrying cost=234+236=$469.52 B) When Q= 64, Ordering cost = 1664/64x16=$416 Carrying cost = (64/2) x 18 x 23%=$132.48 Therefore Total cost= Ordering Cost+ Carrying cost = 416+132.48=$548.48 C) When taking price break,Q= 200,P*= 18-2= $16 Ordering cost= 1664/200 x 16= $133.12 Carrying Cost= (200/2) x 16 x23%=$368 Therefore Total spend cost= Ordering Cost+ Carrying cost+ Inventory cost= 113.12+ 368+ 1664x 16=$27125.12 When Q= EOQ= 114, Total spend cost=469.52+ 1664+ x18= $30421.52 P656 parts Weekly demand= 120,LT= 2 weeks, Price= $35/unit, Ordering cost= $2/unit Demand per year= 120x52= 6240, *D=demand,Q=quantity,Oc=Ordering cost,P=Price EOQ=>Ordering Cost=Carrying cost=>(D/Q) x Oc= (Q/2) x P x23%=>6240/Qx2=(Q/2)x35x23%=>Q=56 When Q=WOQ=56, Ordering cost=6240/56x2=$222.86 Carrying cost=(56/2)x35x23%=$225.40 So Total cost=Ordering cost+Carrying cost=222.86+225.40=$448.26 When Q=350, Ordering cost=6240/350x 2=$35.66 Carrying cost= (350/2) x 35x 23%= $1408.75 So total cost= Ordering cost+ Carrying cost=35.66+1408.75=1444.41 The calculated...
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...PART 1 – Summary of Proposal System Title:Sales Inventory Management SystemProponents of the System:Name: Patrick Russel E. VergaraAddress: Area 1, Peacock St. Sitio Veterans, Brgy. Bagong Silangan, Quezon CityContact Details: 09107048473/4313335 and vergarapatrickrussel@yahoo.comDescription of the System: 1. Basic purpose of the system - Used in logistical systems such as warehousing, transportation, distributorships and supply management chains, an inventory management system is an automated system that keeps track of inventory on a regular basis. The system ensures that items marked for inventory and distribution are accounted for and that stock levels, quantities and costs are reasonable when requisitions for inventory are placed through the system by automatic or manual re-ordering. An inventory management system also keeps an audit trail of all transactions. 2. Benefits - The benefits of an inventory management system include accounts and inventory processing through automation, which reduces human error; various reports to analyze stock levels; quantities and transaction histories of items; and different models that can be used based on the type of organization or company adopting the inventory management system. 3. System’s fulfillment on the Institution’s mission - When a company purchases excessive inventory, it can lead to a higher stocking fee or cost that affects profitability. An inventory management system can prevent inventory excess and analyze a stock...
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...Homework №2 A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities, towns and villages. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks. Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture, manufacturing and production. Types of Warehouses After getting an idea about the need for warehousing, let us identify the different types of warehouses. In order to meet their requirement various types of warehouses came into existence, which may be classified as follows: 1. Private Warehouses The warehouses which are owned and managed by the manufacturers or traders to store, exclusively, their own stock of goods are known as private warehouses. Generally these warehouses are constructed by the farmers near their fields, by wholesalers and ret ailers near their business centers and by manufacturers near their factories. The design and the facilities provided therein are according to the nature of products to be stored. 2. Public Warehouses The warehouses...
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...point where they are needed, when the are needed, in the most economical fashion. The flow of goods, services and information between the point of origin and the point of consumption or application involves the following activities: 1 Demand forecasting 2 Site selection and facility design 3 Procurement 4 Materials handling 5 Packaging 6 Warehouse management 7 Inventory management 8 Order processing 9 Logistics communications 10 Transport 11 Reverse logistics 12 Customer service The total cost approach is generated the idea that all activities that are found within the moving and storing of goods and products need to be thought of as a whole, their total cost. It uses cost trade-offs, when logistics expenses may increase in one area while decreasing in others. The main objective is to find the lowest cost options that will still provide the support for the customer services goals. When this approach is used in the decision making process it’s known as the total logistics concept. Costs that may be involved in the total cost approach include: inventory cost Inventory costs are directly affected by such factors as the mode of transport, the number of warehouses planned, the levels of inventory maintained to ensure a certain level of service, etc. The inventory costs are the cost of the money locked-up in the cost of goods, insurance,...
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...the warehouse vary in shape, size and weight in order to manage the merchandise efficiently the company needs to come up with strategies to manage their inventory better as their current warehouses don’t have sufficient space to store all the merchandize efficiently. Their current warehouses are incompetent and have scarce resources such as lower ceilings, fewer docks, few elevators and the warehouses are not well equipped with technology. They have been unable to accommodate 21st century supply chain function due to obsolete warehousing operations and space constraints that could potentially obstruct their future sales growth. Supporting Evidence: The division faced inadequacies in serving $33 million in sales from this warehouse. The main warehouse was built in 1950’s before establishment of trailers and trucks. It had weak ceiling and no mechanized material handling equipment. According to surveys service was the second most important in deciding upon an office supply vendor, defined by most as 24- hour delivery and at least a 90% fill rate. This warehouse was not only facing challenges to meet the present customer needs alone, but also warehouse capacity constraints. Warehouse at Carpenter Street had only two docks, two forklifts and weak floors. It was shedding layers of paint, plaster and dirt on workers. The warehouses had weak floors due to which handling and stocking of merchandise was done by hand, the floors didn’t support use of forklifts. The warehouses had...
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