WAREHOUSING

SHIPPING PRINCIPLES Select cost effective & space effective handling units Minimize product damage

Unitize & secure loose items in cartons and totes Unitize & secure loose cases on pallets Unitize & secure loose pallets in outbound trailers

Eliminate shipping staging and direct load outbound trailers Use storage racks to minimize floor space requirements for

shipping staging Route on-site drivers through the site & minimize paperwork

and time Use small parcel shipping

STORAGE PLANNING• Objectives

– To provide the required customer service– To keep track of where items are stored– To minimize effort to receive, put away, and

retrieve items Basic Stock Locating Systems

– Group functionally related items together– Group fast-moving items together– Group physically similar items together– Locate working stock and reserve stock

separately

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Storage Planning Product volume is the major concern when defining a

warehouse storage plan.

High-volume sales or throughput product should be stored in a location that minimizes the distance it is moved, such as near primary aisles and in low storage racks.

Such a location minimizes travel distance and the need for extended lifting.

Conversely, low-volume product can be assigned locations that are distant from primary aisles or higher up in storage racks.

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Similarly, the plan should include a specific strategy for products dependent on weight and storage characteristics.

Relatively heavy items should be assigned to locations low to the ground to minimize the effort and risk of heavy lifting.

Bulky or low-density products require extensive storage volume, so open floor space or high-level racks can be used for them.

On the other hand, smaller items may require storage shelves or drawers.

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A Sample Storage Area

Fixed Location A permanent location, & no other items are stored there Fixed-location systems usually have poor cube utilization Usually used in small warehouses; throughput is small

Floating (Random) Location Goods stored wherever there is appropriate space Advantage is improved cube utilization It requires accurate and up-to-date information Warehouses using floating-location systems are usually

computer-based

Stock Location

Stock Location continued…

• Two other systems sometimes used are– Point-of-use storage• Inventory stored close to where it will be

needed• Used in repetitive manufacturing & JIT

systems– Central storage• Contains all inventory in one central

location

Advantages of Point-of-use Storage Materials are readily accessible to users Material handling is reduced or eliminated Central storage costs are reduced Material is accessible all the time

Stock Location continued…

Advantages of Central Storage Ease of control Inventory record accuracy is easier to maintain Specialized storage can be used Reduced safety stock, since users do not need to

carry their own safety stock

Stock Location continued…

TYPES OF STORAGE