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Chapter 5

Chapter 5
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17 views9 pages

Chapter 5

Chapter 5
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© © All Rights Reserved
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CHAPTER-05
WAREHOUSING OF FAST AND SLOW MOVING ITEMS

Introduction

0501. This chapter covers the principles of good warehouse layout and design,
equipment selection and materials movement. It also covers the transactional
requirements needed to run an effective stores operation and the criteria for the
selection of a warehouse site.

Warehouse location and Acquisition Options

0502. In choosing the location of a warehouse or stockyard, following should be


considered:

a. Proximity to the main points of supply and/or demand, to minimize transport


lead-times and costs.
b. Good road and/or rail access, avoid in problems of congestion.
c. Drainage and security.
d. Availability of essential services, e. g. electricity, water and communications.
e. Size of the site, and its ability to cope with future expansion requirements.
f. The most convenient acquisition options are:
(1) Purchase of an existing warehouse.
(2) Land purchase and self-build.
(3) Rental.
(4) Outsourcing warehousing services.
(5) Having a build-own-operate arrangement with a commercial
warehousing Specialist or tax free zone developer.
g. Any relevant taxes and/or investment incentives.

Warehouse Design.

0503. Obtaining the required information. Whether your company is in the


position of being able to design and build a new warehouse or to rent one that has
already been built, certain considerations will apply. For simple storage facilities, it is
possible to manually calculate space requirements by using the following
information:

a. Estimates of minimum and maximum inventory requirements, in


terms of volumes and weights.
b. Daily throughput in number of deliveries, their volumes and their
weights.
c. Sizes and gross axle weights of incoming and outgoing vehicles.
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d. Packaging sizes and maximum stacking heights.


e. Size and unit weights for storage racking, pallet trucks and other
equipment.
f. Safe limits for moisture content, temperature and dust particles in
the storage area, based on the type of inventory being stored, e.g.
perishable foodstuffs, volatile chemicals, electronic components etc.

Basic information needed to design a warehouse

Number of
movements
Weight
Volume

Equipment
Staff

Handling Capacity
ITC M11:U5:5.3-2

0504. Warehouse design parameters. Warehouses should be designed around


the operations that will be carried out inside the structure.

Warehouse design and efficiency


Design parameters T rational warehouses Automated warehouse
Height of eaves 10 meters 18 to 32 meters
Storage *Pallets in lanes *Fully automated
*The goods dictate the storage & retrieval
stacking height *Storage eight
*Wide aisles for forklift independent of goods
running *Very narrow aisles for
picker-stackers
Equipment Pallet racking Multi-depth and
purpose-built
Interior space Standard “box” Operations dictate the
according to site design
Store 50% to 75% Above 95%

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0505. Cross-docking distribution centers. Warehouse building design has been


revolutionized in recent years by :

a. The application of Just-in-Just (JIT) techniques to supply logistics.

b. The use of mathematical modeling and simulations to reduce pipeline


inventory to an absolute minimum.

c. Ensuring very short supply response times to demand.

d. Maximizing vehicle utilizations for economic load transportation.

e. Traditionally, one of the least efficient parts of the supply process was
the breaking of bulk loads carried on big trucks from suppliers, or having
suppliers deliver smaller mixed loads to individual dedicated multi-sized
vehicle fleet and warehouse transshipment facilities.

Using cross-docking centres


Supplier Supplier Supplier

End-point End-point End-point End-point End-point End-point


delivery delivery delivery delivery delivery delivery

ITC M11:U5:5.3-7

0506. Warehouse Layout. The principles of good warehouse and stockyard layout
are applicable whatever types of items are stored. The design of the warehouse of
stockyard – and the way that materials are stored – can make a significant difference
to the cost of the warehouse operation by affecting the amount of losses through
damage, pilferage of lack of visibility. Response time to customer demand can also
be improved with an efficient warehouse layout.

0507. Location of the loading and unloading areas. Adequate transshipment or


unloading / loading bay areas should be provided to allow for the expected volume of

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traffic, so that deliveries do not cause congestion, delays and mix-ups in


consignments.

Transshipment
bay
Dock Storage locations Dock
levellers levellers
ADMIN.
UNPACKING &
INSPECTION

DISPATCH
FLOW

ITC M11:U5:5.4-1

a. Length of flow of different types of goods. Fast moving items


should travel the shortest distance. Slow moving items should be
located in areas that require the longest distance to travel. This is
shown in the following figure.

STORES / STOCKYARD
LENGTH OF FLOW

SLOW MOVING
ITEMS

MEDIUM RATE
MOVING ITEMS

FAST MOVING
ITEMS

ENTRANCE EXIT

ITC M11:U5:5.4-3

b. Warehouse layout areas. There should be a number of distinct


areas within a warehouse. These will include:
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(1) Receiving bay


(2) Dispatch bay
(3) Control point
(4) Area of materials handling equipment
(5) Unpacking area
(6) Inspection area
(7) Marshalling area fast moving pallet area
(8) Slow moving racking area
(9) Heavy goods area
(10) Bin area
(11) High value items security cage.

c. Other factors that make good layout.

(1) Inherent safety


(2) Clearly identified locations
(3) Staff comfort
(4) Good communication
(5) Maximum accessibility
(6) Use of space
(7) Long term flexibility

d. Fixed of random stock location. As the name implies , using a


fixed location system means that each stored item is to be found at a
specific location irrespective of the volume stored at any particular
point in time. Using a random stock location system means that
items are stored in the most appropriate empty place available.

Materials Handling and Equipment

0508. Introduction. Materials handling is the movement, storage, control, and


protection of materials and products throughout the process of their manufacture,
distribution, consumption, and disposal. There are five main goals for warehouse
management operation. These are to:

a. Maximize completion of orders in full and on time


b. Minimize the cost of warehouse activities.
c. Minimize the time that materials stay in the warehouse.
d. Minimize the response time to demand from the next stage in the
supply chain and errors in dispatched loads.
e. Preserve the quality, value, safety and security of the stored items.

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Forklift
truck
Hand trolley

Pallet
truck

ITC M11:U5:5.5-2

0509. The principles of efficient and safe materials handling. Efficient and
safe material handling activities at warehouses should be planned based on the
following principles:

a. Eliminate the need for handling ne getting rid of unnecessary movement


b. Clear understanding of hazardous material classifications and markings
c. Plan layout and handling simultaneously to reduce overall handling cost.
d. Arrange handling to minimize the number of pick-up and put-down
movements.
e. Use unit loads, pallets or containers wherever possible as this will reduce the
amount of movement required and can also reduce the risk of damage.

0510. Storage raking and layout for different categories of materials. The type
of handling equipment to be used in a store determines the height of racking that will
be used. Forklift trucks can store materials up to 10 meters high. Specialized high-
rise mobile picker-stacker machines can increase operational heights up to about 15
meters. Picker-stacker crease operational heights up to about 15 meters. Picker-
stacker cranes permanently mounted on heavy-duty pallet racks can operate up to
40 meters in height. The different types of systems are:

a. Pallets and pallet racks


b. Post pallets
c. Shelving
d. Bins
e. FIFO racking
f. Carousels
g. Semi-automated handling equipment

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h. Unloading, putting away and picking equipment


j. Highly-automated handling equipment
k. Warehouse information systems security
l. The impact of warehouse design on cost per unit of material stored

Post pallets

Shelving

ITC M11:U5:5.5-7

Steel or
plastic
storage bins

First In First Out


(FIFO) type
racking

Carousel
storage
unit
ITC M11:U5:5.5-10

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0511. Semi- automated handling equipment. Conveyor system is used in some


large stores to more materials from one part of the building to another.

Semi-automated handling equipment:


conveyor systems

ITC M11:U5:5.5-11

0512. Unloading, putting away and picking equipment:

a. Forklift trucks

b. Reach trucks

c. Picker-stackers

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Unloading, putting away and picking


equipment
Picker-stacker truck
Forklift trucks

Maximum
height
15m.

Pantograph

Reach truck
ITC M11:U5:5.5-12

0513. Highly automated handling equipment. Such capital intensive complex and
static systems can normally only be justified for mature industries situated in
countries with high labor costs with a high through out of expensive materials.

Highly-automated fixed handling


equipment

Maximum
height: 40 m.

Picker-
stacker
crane

Automatically
guided vehicle

ITC M11:U5:5.5-14

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