CHAPTER 11

Materials Handling, Computerization and

Packaging

Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

11-2Materials Handling Equipment - Manual

• Racks– Conventional pallet

racks– Drive-in racks– Drive-through racks– High-rise racks– Cantilever racks– Pallet stacking frames– Stacking racks– Gravity-flow racks

• Shelving

• Drawers

• Mobile racking or shelving

a

Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

11-3Materials Handling Equipment - Automated

• Unit load AS/RS

• Car-in-lane

• Miniload AS/RS

• Horizontal carousels

• Vertical carousels

• Man-ride machines

11-2 b

Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

11-4Advantages of Automated Materials Handling Systems

• Operating cost savings

• Improved service levels

• Increased control through more and better information

11-3

Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

11-5Disadvantages of Automated Materials Handling Systems

• Initial capital costs• Downtime of

equipment• Maintenance

interruptions• Software-related

problems• Capacity problems

• Lack of flexibility• Maintenance cost• User interface/

training• Worker acceptance• Obsolescence

11-4

Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

11-6Operational and Implementation Problems

with Warehouse Automation Systems

Problem Area Percent Mentioning1. Cost of equipment/financial justification

2. Downtime or reliability of equipment/maintenance interruptions

3. Software-related problems, such as poor documentation, incompatibility, failure or modification

4. Capacity problems, such as limited applications/integration of equipment into existing system

5. Lack of flexibility to respond to changing environment/not suitable for high degree of seasonality in business

6. Maintenance cost/ maintenance parts

7. User interface/training to operate system/transition from manual to automated procedure

8. Worker acceptance of automation

9. No problems/ we are adapting well

10. Lack of top management commitment

11. Obsolescence/ need more up-to-date automation/ need more automation

19.0%

10.0

8.0

8.0

6.0

5.0

5.0

4.0

4.0

3.0

3.0

11-5

Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

11-7Warehousing in a JIT Environment

• Total commitment to quality

• Reduced production lot sizes

• Elimination of non-value-added activities

11-6

Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

11-8Functions of Packaging

• Marketing» Information» Promotion

• Logistics» Containment» Protection» Apportionment» Unitization» Convenience» Communication

11-7

Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

11-9Benefits of Good Packaging

• Lighter packaging may save transportation costs.

• Careful planning of packaging size/cube may allow better space utilization.

• More protective packaging may reduce damage and requirements for special handling.

• Environmentally conscious packaging may save disposal costs and improve the company’s image.

• Returnable containers provide cost savings and environmental benefits.

11-8

Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

11-10Technologies of the Modern Warehouse

• Warehouse management systems (WMSs)

• Radio frequency communication and inventory update

• Bar-code reading and label generation equipment

• EDI and the Internet

• Transportation management systems

• Interface to enterprise requirements planning (ERP) systems

• Productivity tracking software

• Activity-based costing software

11-9

Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

11-11Information Flows in the Supply Chain

Supplier communication

Manufacturer communication

Warehouse communication

Carrier communication

Customer communication

Supplier CarrierInbound carrier

CustomerManufacturerSupplier warehouse

Supplier warehouse

Order (or complaint) information

Order/complaintDelivery information

Appointment information

Order information

Pickup schedule

Source: Arnold Maltz, the Changing Role of Warehousing (Oak Brook,IL: Warehousing Education and Research Council, 1998), p. 27.

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