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WHEN PROBLEMS OCCUR IN WAREHOUSE OPERATIONS:REENGINEERING IS OFTEN DONE
LAYOUT PROJECTS ARE COMMENCED
WITH NO IDEA OF THE ROOT CAUSE OF THE PROBLEMS
DUE TO:LACK OF KNOWLEDGE
LACK OF TOOLS
LACK OF TIME
Investigating Wareh!se O"eratinsCha"ter #
A$tivit% Pr&i'ing( Mining Fr G')
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Wareh!se A$tivit% Pr&i'ing
S%ste*ati$ ana'%sis &
ite* a$tivit% + r)er a$tivit%
Pr&i'ing is )esigne) t rea)i'% i)enti&% rt $a!ses O& *ateria' &', "r-'e*s
O& in&r*atin &', "r-'e*sPin"int ""rt!nities &r "r$ess i*"rve*entPrvi)e an -.e$tive -asis &r )e$isin *a/ing
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A)vantages & Pr&i'ing
Can 0!i$/'% Revea'(
Design an) P'anning O""rt!nities Crre$t 1ase'ine &r J!sti&%ing Ne, Invest*ents
Pe"'e Fee' a Sense & Inv've*ent
Pi$t!re is Wrth a 2333 Wr)s Ca"t!re the a$tivities & the ,areh!se in "i$tria' &r*
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CAUTION
Dn4t get st!$/ nAnalysis Paralysis Pr&i'ing -e$*es the ga'
Frget t s've the "r-'e*s
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5 Ke% P'anning + Design Iss!es
26 Or)er Pi$/ing + Shi""ing
#6 Re$eiving + P!t7a,a%
86 S'tting96 Materia' Trans"rtatin S%ste*
:6 La%!t + Materia' F',
;6 Wareh!se Si
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Pi$/ing + Shi""ing
Or)er 1at$h Si
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Re$eiving + P!t7a,a%
Re$eiving M)e Dis"sitin
P!t7a,a% 1at$h Si
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S'tting
=ne De&initin
Strage M)e Se'e$tin + Si
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Materia' Trans"rtatin S%ste*
S%ste* Se'e$tin
S%ste* Si
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Wareh!se La%!t + Materia' F',
Overa'' Wareh!se F',
Re'ative F!n$tina' L$atins
1!i')ing Cn&ig!ratin
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Wareh!se Si
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Leve' & A!t*atin
Sta&&ing Re>!ire*ents
Ca"ita'7La-r S!-stit!tin
Leve' & Me$hani
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What ) C!st*ers Want?
their orders filled
S*e $!st*ers are @igh De*an)
Use a 'arge "rtin & ,areh!se a$tivit% @ave high $!st*er servi$e re>!ire*ents
Ma% )e)i$ate a "rtin & the ,areh!se t that$!st*er r -!siness !nit 8r)Part% Prvi)ers )e)i$ate ais'es t a $!st*er
Cntra$t Wareh!ses have $*"'ete s!""rt t a $!st*er
Wareh!se ,ithin a Wareh!se
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A)vantages & a Wareh!se ,ithin a Wareh!se
S*a''er ,areh!ses are *re e&&i$ient
Prvi)e -etter $!st*er servi$e
Can s!-7)ivi)e the ,areh!se int se'&7$ntaine)
"r$essing !nits ie( Divi)e + Cn>!erB
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T%"es & Pr&i'es( C!st*er Or)er Pr&i'e
Or)er *i )istri-!tins
LinesOr)er )istri-!tin
C!-esOr)er )istri-!tin
Lines + C!-es Or)er )istri-!tin
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Or)er Mi Distri-!tin
There are severa' r)er *i )istri-!tins that arehe'"&!' in "'tting ,areh!se "erating strategies6
Fa*i'% Mi vera'' ,areh!se "erating strateg% is )i$tate)-% r)er *i I& P!re 7 r)ers ten) t -e &r* ne Pr)!$t Fa*i'%B
in)i$ates an a)vantage & virt!a' ,areh!sing ,ithin a,areh!se
Res!'ts in g) "r)!$tivit% + $!st*er servi$e
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Fa*i'% Mi Distri-!tin
35% 25% 15% 5% 5% 5% 10%
A On'% 1 On'% C On'% A + 1 A + C 1 + C A 1 + C
35
15
5 5 5
10
25
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@an)'ing Unit Mi Distri-!tin
F!'' r Partia' Pa''etCase Mi
Se"arate "i$/ areas &r &!'' "a''ets "artia' "a''ets $artns
Se"arate areas &r &!'' vs -r/en $ase *i "i$/ing
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@an)'ing Unit Mi Distri-!tin
% of Order 50 30 20 55 25 20
& 'ines 5: 23 2: ;3 83 23
Lse$artn
F!'' "a''et Mie) 1r/enCase
F!'' Case Mie)
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Or)er In$re*ent Distri-!tin
Deter*ine "rtin & &!'' !nit 'a) "a''ets $artnsB
vs "artia' !nit 'a)s H "a''et "a''etB
1!i') "artia' !nit 'a)s( At the s!""'ier i& "ssi-'e
U"n re$ei"t in ne$essar%
Strage s"a$e *a% -e sa$ri&i$e)
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P!r$hase Or)er Pr&i'e
Fr in-!n) *ateria' vi$e !t-!n) *ateria'
Use sa*e )istri-!tin ana'%ses as &r !t-!n)
"r&i'ing
S!""rts the sa*e -at$hing an) "r$essingstrategies &r re$eiving an) "!ta,a%
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Ite* A$tivit% Pr&i'ing
Use) t s't the ,areh!se What strage *)e sh!') -e assigne)
@, *!$h s"a$e sh!') -e a''$ate)
Where sh!') it -e '$ate)
T%"es & A$tivit% Pr&i'ing( P"!'arit%
C!-e Mve*ent'!*e
P"!'arit%7'!*e Or)er C*"'etin
De*an) Crre'atin
De*an) aria-i'it%
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Ite* P"!'arit% Distri-!tin
C'se t the )rC'se t the &'r Minrit% & ite*s generate *a.rit% & the "i$/s
Uses Paret Ana'%sis r A1C Ana'%sis A a!t*ate)7high'% "r)!$tive strage *)e
G')en =ne $'se t ais'e at r near ,aist high
1 se*i7a!t*ati$ *)erate'% "r)!$tive strage"i$/ing*)e
Si'ver =ne net *st rea)i'% a$$essi-'e
C *an!a' &&ers high )ensit% strage
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Ite* P"!'arit% Distri-!tin
P"!'arit% *a% -e -ase) n(
D''ars & Sa'es
'!*e
& Re>!ests
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C!-e Mve*ent Mnth
G&Ite*s
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P"!'arit%7C!-e Mve*ent Mi
@igh P"!'arit%7@igh C!-e( Uses $artn &', ra$/s '$ate) &r ease & re"'enish*ent
@igh P"!'arit%7L, C!-e( Man% "i$/s !nit & s"a$e !se 'ight )ire$te) $ar!se's
$ar!se's are nt eas% t rest$/ are e"ensive "er &t &strageB
L, P"!'arit% L, C!-e( Len)s itse'& t -in strage
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Ite*7Or)er C*"'etin Distri-!tin
S*a'' gr!"s & ite*s that &i'' 'arge gr!"s & r)ers(
List *st t 'east ""!'ar
Deter*ine "r"rtin & r)ers a s!-set $an $*"'ete Fr ea*"'e 23 & the ite*s *a% &i'' :3 & the r)ers6 net
s'i)e is an ea*"'eB
Assign these t small order completion zones: Pr)!$tivit%, "r$essing rate "r$essing >!a'it% t%"i$a''% #7: ti*e
*re e&&i$ient than genera' ,areh!se
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Ite*7Or)er C*"'etin Distri-!tin
50% of the orders are
completed by 10% of the items
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De*an) Crre'atin Distri-!tin
I)enti&% re'atinshi" a&&init%B & )e*an) -et,eenin)ivi)!a' ite*s r &a*i'ies6
Deter*ine) -ase) n &re>!en$% & -eing re>!este)
tgether n r)ers O&ten -ase) n sa*e st%'e r si
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De*an) Crre'atin Distri-!tin
I!e" N#"$er I!e" N#"$er P&r Fre'#e()*
27#79 27#72 :
987#72 987#7 9:
3357878 335787# 8;
227#72 227#75 83
727 727; ##
#35797# #357979 2:
;;#727 ;;#7272 2#887579 57#7
22#787 22#7879 ;
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