...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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...Merloni Group * Decentralized operations, plants for single product lines * Exports comprised 60% of total revenue of 626 billion lire in 1984 * Urban retail customers with high volumes used to keep some inventory. Small and rural retailers did not have much inventory and relied on company’s warehouses for fulfillment. * Delivery could be delayed to problems like those of over demand, production issues and climate conditions. * Direct supply for built in products to architects from the central warehouse, that provided 45% of revenues * Seasonal variation for products and 15% market share in Italy * Two plants and central warehouse in Central Italy, HQ in Fabriano, 17 regional warehouses (RW), 65% served through RW * Customers demanding FTL were served directly with 4,000 lire discount * FTL recd per week at regional warehouses ranged from 1 to 10 depending upon seasons and area served * Implementation of A (2 weeks) – B (4 weeks) – C (no inventory) system and performance bonuses resulted in 75% reduction in inventory levels and production planning reduced from 4 to 3 months. Benefits of Implementation: * Drastic reduction in warehouse and storage costs * Significant reduction in supply time to major retailers * Higher customer satisfaction levels * Reduced labor costs Risks Associated with Cross Docking: * Excess orders for a consecutive long cycle could result in dissatisfaction of customers and loss of market...
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...Warehousing plays a vital part in a logistics system. In the past, we always thought that warehouse is used for storage of inventories. In today’s quick response, the growth of warehouse not only serves for storage, but also for movement, information transfer and valued added services. A good warehouse space and layout planning is a primary element for efficient warehouse. Tompkins and Harmelink (2004, p.240) state the purposes of warehouse layout are space usage efficiency; allowing for efficient material handling; cost efficiency; maximum flexibility and good housekeeping. Successful warehouse layout could maximize space utilization, minimize and control movement and location, and provide safety and security environment. The first step in warehouse layout planning is to consider the space requirement. Tompkins et al. (1996, p.430) state space conservation, space limitations, accessibility and orderliness are some factors on designing layout. In layout planning, as space will be limited by floor loads, truss, the height of ceiling, etc, it should be maximized utilization of concentration and cube and also minimized honeycombing. To optimize space utilization, it is not only developed by horizontally but also by vertically. Space concentration and cube utilization can benefit for the flexibility and ability for bulky receipts such as higher and thicker materials. Tompkins and Smiths (1998, p.243) describe honeycombing is storage space losing due to improper use of storage...
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...Jones Feed and Seed is a large regional warehouse that supplies agricultural products to retail stores. These products include pesticides that are used to treat animals and herbicides that are used to improve crops. For its warehouse operations, the company generally hires employees who have just finished high school. These employees work under the supervision of a more senior laborer, who is usually someone with about one year of experience working in the warehouse. The supervisor is in charge of interviewing job candidates and normally makes final hiring decisions. Job Description • Receive and count stock items and record data manually or using computer. • Pack and unpack items to be stocked on shelves in stockrooms, warehouses, or storage yards. • Verify inventory computations by comparing them to physical counts of stock and investigate discrepancies or adjust errors. • Store items in an orderly and accessible manner in warehouses, tool rooms, supply rooms, or other areas. • Mark stock items using identification tags, stamps, electric marking tools, or other labeling equipment. • Clean and maintain supplies, tools, equipment, and storage areas in order to ensure compliance with safety regulations. • Determine proper storage methods, identification, and stock location based on turnover, environmental factors, and physical capabilities of facilities. • Keep records on the use and/or damage of stock or stock handling equipment. • Move controls to drive...
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...before each number. SET A ___1. A means of transportation which is considered as less costly. ___2.A widely used inventory control technique. ___3. A special transport agency which fit the requirement for speed and reliability. ___4. This refers to receiving, recording, filling, and assembling orders for shipment. ___5. An inventory which may mean lost sales. ___6. A type of warehouse which are owned or leased by the company. ___7. This form of transportation constitutes the fastest means of delivering goods. ___8. This refers to the activities involved in moving goods over short distances into, within, and out of warehouses and manufacturing plants. ___9. A component of the order cycle that refers to the time the customer develops the order until the order is received by the seller. ___10. A form of transportation which provides a very important means of transportation especially in an archipelago like the Philippines. ___11. This cycle consists of order placement, internal order processing, order preparation, and order shipment. ___12.A type of warehouse that are operated by professional warehousers. ___13. Component of the order cycle that refers to all activities relating to the picking and packaging of individual customer orders. ___14. A special transport agency involved in the economical distribution of...
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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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...begin a career with a growth-oriented company that offers challenging responsibilities which I can utilize, apply my knowledge, experience, and interpersonal skills, and the potential for advancement. RECENT WORK EXPERIENCE: 4/2006-3/2012 Material Handle /Expeditor / Warehouse Cell Leader Employer: Blue Bird Body Company 402 Bluebird Blvd Fort Valley, GA 31030 Supervisor: Frank Harris Office: (478) 825-2193 Cell: 478-542-4497 Operated material handling equipment such as forklifts, pallet jacks, hand trucks or dollies to move stock or reorganize storage. Performed a variety of warehouse duties such as pull/assemble customer orders, check outbound orders for accuracy/completeness, inventory stock checks restock, and conduct daily cycle counts. Unloaded trucks and open up to 100 or more boxes a day (removing required documentation and material from inside of box) checking product. Check Bill of Material for problems that was caused by missed parts Lithonia Lighting Inventory Control/Assembler, 2000- 2005 Maintained Inventory Records Managed material shortage, line inventory locations, and trouble - shoot inventory problems. Assisting in counting of physical inventory Multiple tasks to support Production Line/Warehouse Assembled light fixtures using power tools. Frito Lay Caser/Machine Operator, 1998-2000 Packed product off a moving line into boxes. Maintained a report of the total amount of goods manufactured in a day from the machine Adjusted the operating speed and controlled the...
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...Introduction System Introduction For optimal sales and inventory management processes, you need robust functionality for managing your logistics facilities. Support for inventory management helps you record and track materials on the basis of both quantity and value. Warehouse inventory management functions cover internal warehouse movements and storage. Using this software we can reduce costs for warehousing, transportation, order fulfillment, and material handling – while improving customer service. You can significantly improve inventory turns, optimize the flow of goods, and shorten routes within your warehouse or distribution center. Additional benefits of inventory management include improved cash flow, visibility, and decision making. This software is user friendly and hence easy to use. Employees can plan, enter, and document warehouse and internal stock movements by managing goods receipts, goods issues, storage, picking and packing, physical stock transfers, and transfer postings. Problems In existing system As we know manual system are quite tedious ,time consuming and less efficient and accurate in comparison to the computerized system. So following are some disadvantages of the old system: 1. Time consuming 2. Less accurate 3. Less efficient 4. Lot of paper work 5. Slow data processing 6. Not user friendly environment 7. Difficult to keep old records Scope of Proposed...
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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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...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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...definition of value addition is to economically add value to a product and form characteristics more preferred in the market place. There are two main types of value addition, Innovation or coordination. Innovation focuses on improving existing processes, procedures, products or services. Value-added services are those which complement and enhance warehousing, transportation, and logistics offerings. Using value-added logistics services enables companies to lower inventory footprints of finished goods by delaying the labelling and final assembly of products until customer orders are received. This is a cost effective supply chain strategy that gives companies more flexibility over their inventory. WAREHOUSE The warehouse has loading docks to load and unload goods from trucks. Warehouses are designed for the loading and unloading of goods directly from Roadways, Seaways and Airways They 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 The facility is properly slotted. Slotting addresses which storage medium a product is picked from using the part number of the specific part that is stored according to supplier and with a proper...
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...The warehouse is the most common type of storage though other forms do exist (e.g., storage tanks, computer server farms). Some warehouses are massive structures that simultaneously support the unloading of numerous in-bound trucks and railroad cars containing suppliers’ products while at the same time loading multiple trucks for shipment to customers. The different types of warehouses that are to be required will affect the decision make to either build or to buy. This is because it will have to depend on the availability of the warehouses and its uses. For example, Cold Chain’s warehouses are not widely available and are usually located near the port. Below are the different types of warehouses: * Private Warehouse - This type of warehouse is owned and operated by channel suppliers and resellers and used in their own distribution activity. For instance, a major retail chain may have several regional warehouses supplying their stores or a wholesaler will operate a warehouse at which it receives and distributes products. * Public Warehouse - The public warehouse is essentially space that can be leased to solve short-term distribution needs. Retailers that operate their own private warehouses may occasionally seek additional storage space if their facilities have reached capacity or if they are making a special, large purchase of products. For example, retailers may order extra merchandise to prepare for in-store sales or order a large volume of a product that is...
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...Company Background Dakota Office Products (DOP) was a regional distributor for office supplies to institution and commercial business, their product are pens, pencils, markers, and paper for copier and printers. At the end of year 2000 they suffer Net Loss amounted to USD 470,000 and this is the first time of their history DOP suffer Loss. DOP operated several distribution centers. They bought the supplies from many different manufacturers and keep their inventory at the storage. When the customer order comes, they ship the order to the customer by using 2 ways: 1. Shipment using commercial truck 2. Desktop delivery to individual customer with delivery truck driven by warehouse personnel to deliver with additional 2% markup Pricing calculation on DOP: 1. Mark up 15% from product cost (to cover Warehouse Expense) 2. Another markup which determined based on actual expenses in prior years and general industry & competitive trends (to cover General and Selling Expense and allowance for Profit) 3. Price adjustment based on long-term relationship and competitive situation Dakota had introduced Electronic Data Interchange and corporate website which allow the customer to place order. The people on the distribution center can be divided into 2 teams, which is distribution center team and data entry team The Problem Is Although the company had introduced innovation in desktop delivery and electronic order entry, they couldn’t earn profit, what action should be taken to regain...
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...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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