WAREHOUSING

Akash Deep MauryaMT14IND002

M. Tech. (Industrial Engineering)2014-2015

DEPARTMENT OF MECHANICAL ENGINEERINGVNIT NAGPUR

2 What is warehouse? A location with adequate facilities where

volume shipments are received from production center, then broken-down , reassembled into combinations representing a particular order & shipped to customer.

A storage structure constructed for the protection of the quality and quantity of the stored produce.(GOI)

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WAREHOUSING

warehouse

waremanufactured articles of a

specified type

housea building in which people

meet for a particular activity.

4 Warehouse is for-

For ensuring a continuous , uninterrupted supply of goods in market areas.

To provide adjustment between the production & use of product.

Transportation consolidation; Product mixing; Docking; Service; Protection against contingencies

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Latest concept of warehouseA location where input (incoming factory shipments) are converted to outputs (outward shipments & orders).

Its need arise due to the time gap between production and consumption of products

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6 Material storage

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Material storage

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What could be stored? Raw materials WIP (work in progress) Consumable stores Spare parts Ready made components Finished goods

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Need of warehouse

Regular supply Quality of delivery Stock of trade Price stabilization Seasonal products Perishable goods

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Continuous production

Large scale production

Quick supply Easy handling Protection &

preservation

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Location of warehouse• Service area.• Transportation facility.• Availability of power, water, gas, wastes etc.• Labour supply & cost.• Existing facilities of company.• Climate & labour productivity.• Real estate, excise & government taxes.• Local residents & government.• Potential for later expansion and operations.• Cost of land & other costs.

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Warehousing operations:

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Receiving goods

Identifying goods

Sorting goods

Dispatching to storage

Holding Retrieving

Marshalling goods

Dispatching

Preparing records & advices.

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Shipping•Schedule Carrier•Load Vehicle•Bill of Loading•Record Update

RECEIVING•Schedule Carrier•Unload Vehicle•Inspect for damage

INPUT

WAREHOUSE PROCESSING

Put-away•Identify Product•Identify Product Location•Move Products•Update Records

Storage•Equipment•Stock Location– Popularity– Unit Size– Cube

Shipping Preparation•Packing•Labeling•Stacking

Order Picking•Information•Walk & Pick•Batch Picking

OUTPUT

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13PRIVATE WAREHOUSE

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• OPERATED by a company for shipping and storing its own products

• OWNED AND MANAGED- manufacturers or traders• CONSTRUCTION- Farmers near their fields, Wholesalers and

Retailers near their business centers' and manufacturers near their factories

• COMPANIES – Stable inventory levels and long run expectations• SUITABILITY- Firms that require special handling and storage

features and want to control design and operation of the warehouse

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• Provide storage and physical distribution services on rental basis

• Used by SMALL FIRMS and LARGE FIRMS• Organizes to provide storage facilities to traders,

manufacturers, agriculturists in return for a storage charge• Licensed by Govt. (Central Warehousing Corporation, State

Warehousing Corporation, FCI)• SUITABILTY – seasonal production or low volume storage

needs, companies with inventories maintained in many locations, firms entering new markets

• OWNER –stands as an agent of goods

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Types of warehouses : Field warehouses Distribution warehouses Bonded warehouses Cold warehouses Agricultural warehouses Buffer warehouses Export & Import warehouses

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Characteristics of ideal warehouse: Convenient location Appliances to load & unload goods. Adequate space and proper utilization. Cold storage facilities for specific products. Proper arrangement for protection. Sufficient parking area. Round the clock security. Fire fighting equipments.

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Maximize productivity & minimize cost

Maximize use of space

space is the largest capital cost

Effective use of labor & equipment

labor is the largest operating cost

material handling equipment is the second largest capital cost

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Ideal Facility for Pure Supplier Consolidation(Full Pallet Movement)

Warehouse Space General Layout

DESIGN CONSIDERATION

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Services provided: Temporary storage Quick delivery Balance supply & demand Stock inventory for emergency Refrigeration Invoicing & collection Payment & distribution Protection against factory shutdown Sales promotion activities

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FACTORS INFLUENCING EFFECTIVE USE OF WAREHOUSES• Cube utilization and accessibility• Stock location• Order picking and assembly• Physical Control & Security - Elements

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Cube utilization and accessibilityGoods stored not just on the floor, but in the cubic space of the warehouse.

Warehouse capacity depends on how high goods can be stored.

Accessibility means being able to get at the goods wanted with a minimum amount of work

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Cube utilization and accessibility

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Stock Location• Objectives

1. To provide the required customer service2. To keep track of where items are stored3. To minimize effort to receive, put away, and retrieve

items• Basic Stock Locating Systems

1. Group functionally related items together2. Group fast-moving items together3. Group physically similar items together4. Locate working stock and reserve stock separately

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Stock LocationFixed Locationassigns a permanent location & no other items are stored therepoor cube utilizationUsually used in small warehouses

Floating (Random) LocationGoods stored wherever there is appropriate spaceimproved cube utilizationrequires accurate and up-to-date informationUsually computer-based

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Order Picking and Assembly

When an order is received, items must be obtained from the warehouse, grouped, & prepared for shipment, systems used

• Area system• Zone system• Multi-order system

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PHYSICAL CONTROL & SECURITY - ELEMENTSo Good part numbering systemo Simple, well-documented transaction system

1. Identify the item2. Verify the quantity3. Record the transaction4. Physically execute the transaction

o Limited accessInventory must be kept in a safe, secure (locked) place with limited general access

o Well-trained workforceWAREHOUSING

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Benefits Maximum usage of available floor space and building height More storage capacity Less land and smaller building High productivity Operate faster -24 hours a day, 7-days a week Efficient flow of materials Provide buffer storage functions Need for drivers/operators eliminated Risk of injury minimized by safety fences Reduce stockholdings Inventory accurately tracked at all stages Ongoing operating costs eliminatedWAREHOUSING

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Demerits• Poor market coverage• Distant market demand not met in short notice• Transport cost maximum unless in bulk quantity• Increased material handling cost• Possibility of bottlenecks and resultant delays• Greater danger of loss by fire• Delay in customer service • Huge investment in inventory• Chances of stock-out situation is high• Huge warehousing developments costsWAREHOUSING

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Modern Trends:• Just In time• RFID(Radio Frequency

IDentification)• Warehouse type retail

store• Internet based stores• Automated handling

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Soft wares : • 3PLink• Visual Logistics WMS• LoMag• RF Pathways• SIMMS• ATEC-WM• Advantage Suite• Autostore• TECSYS• SAP• JDA software• epicor

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References:1. http://business.gov.in/manage_business/warehousing.php2. http://

www.slideshare.net/omarof5/warehouse-operationslayout-design-by-omar-youssef?related=1

3. http://www.slideshare.net/WelingkarDLP/chapter-5-warehouse-management4. http://www.capterra.com/warehouse-management-software/5. http://

www.ey.com/IN/en/Services/Transactions/EY-Summarizing-the-key-warehousing-segments-in-India

6. http://www.yourarticlelibrary.com/marketing/marketing-management/warehousing-function-benefits-and-types-of-warehousing/27952/

7. http://www.inboundlogistics.com/cms/article/todays-warehouse-plays-a-new-role/

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