Warehouse Management

1. Question 1

1.1 Introduction

1.2 Warehouse Layout Considerations

1.3 Warehouse Layout and design

1.4 Conclusion

2. Question 2

2.1 Introduction

2.2 Warehousing Functions

2.3 Warehouse Operations Managemnet

2.4 Automation in Warehouse operations

2.5 Safety and Security in Warehouse Operations

2.6 Conclusion

3. Question 3

3.1 Introduction

3.2 Warehouse management system (WMS)

3.3 Enterprise resource planning (ERP)

3.4 Toys R Us Logistics Management Model

4. Question 4

4.1 Introduction

4.2 Inventory Management

4.3 New types of inventory management systems

4.4 Conclusion

Reference

Question 1

1.1 Introduction

The success of your business depends on logical warehouse plans because this allows you to make the best use of available space. It will also facilitate better inventory control and efficiently coordinate the movement of products in and out of storage.

Whether you have an existing warehouse that you would like to optimize or you're moving to an entirely new facility, a thorough plan will ensure that your company's most important needs are met while still staying within the budget. There are several steps in creating a comprehensive storage strategy.

Whether facilities are owned, leased, or rented, the location of plants and warehouses (storage facilities) is extremely important. The strategic placement of plants and warehouse can assist firms in improving customer service levels. Proper facilities location can also allow lower volume-related transportation rates in moving product from plant to warehouse, plant to plant, or warehouse to customer.

1.2 Warehouse Layout Considerations

The first consideration in selecting a site is the location of the firm's target markets. The needs of the customers and the location of raw materials, component parts. And subassemblies are also major considerations, for the company must be concerned with inbound movement and storage of materials in addition to outbound flows. Other important factors include labor rates; transportations services; city; county, and state taxes; security; legal concerns; local factor( e.g. attitude of the community toward new industry ) land cost, and availability of utilities.

As an illustration of the importance of site selection, Intel Corporation hand to determine a location for its new semiconductor manufacturing facilities. The company received bids from a number of major cities, including Portland, Oregon; Austin, Taxes; and Chandler, Arizons. Ultimately, Intel chose the Arizona location because it already had a facility nearly, the area was growing and had an attractive labor farce, the town provided tax and other incentives, and Intel had a good relationship with local government. Intel Building $1.5 Billion Plant. (William Carlisle, 1994)

1.3 Warehouse Layout and design

Where should things be located in the organization's logistics system? More specifically, where should product be located within a warehouse? With an average warehouse? With an average warehouse containing approximately 22000SKUs, this is an important decision because it has a critical effect on system efficiency and productivity. Philippe R. Hebert (1995) & James M. Apple , Jr. (1999)

Randomized Storage : Randomized, or floating slot, storage places items in the closest available slot, bin, or rack. Products are then retrieved on a first -in , first out (FIFO)basis. This approach maximizes space utilization ,although it requires longer travel times between order-packing locations. Randomized system often employ a computerized automatic storage and retrieval system(AS/RS), which minimizes labor and handling costs.

Dedicated Storage : In dedicated, or fixed-slot, storage products are stored in permanent locations within a warehouse. Three methods can be used to implement the dedicated storage approach, including storing items by (1) part number sequence,(2) Usage rates, or(3) activity levels (e.g., grouping products into classes or families based on their levels(e.g., grouping product into classes or Families based on their level of activity or throughput rates). For a brief discussion of random and dedicated storage, see Hebert, "Manage Inventory? Better Find It First!"

Compatibility : In terms of overall warehouse layout, product may be grouped according to their compatibility , complementarity , or popularity. Compatibility refers to how well products may be stored together. For example, pharmaceuticals cannot be stored with bagged agricultural chemicals in the United States because of federal regulations. And many years ago, before the development of paints, it was discovered that automobile tires and consumer appliance could not be stored together. Chemical vapors given off by the tires reacted with the pigments in the appliance paint, resulting in slight color changes. Appliance then had to be repainted or sold at a discount.

Complementarity : It refers to how often products are ordered together and therefore stored together. Computer disk drivers, CD-ROMs , and monitors; pens and pencils; and desks and chairs are example of complementary products that are usually stored close to each other.

Popularity : It relates to the fact that products have different inventory turnover rates or demand rates. Another term used for this turnover rate is velocity. Items that are in greatest demand should be stored closest to shipping/ receiving docks. Slow-moving items should be stored elsewhere, at more remote locations within warehouses.

Using the computer, it is possible to group products within a warehouse so that the following objectives are met: Richard A. Parrott (1992)

Fast movers are placed nearest the outbound truck docks. This minimizes the distances traveled daily by materials handling equipment.

Slow movers are located at points farthest from outbound shipping docks.