Introduction into Logistics PhD Natasha Lutovinova Logistics Lecturer E-mail: Lutovinova.N@nhtv.nl Room: G1.006

Handbook: Paul R. Murphy & Donald F Handbook: Paul R. Murphy & Donald F. Wood, Contemporary logistics (New Jersey 2011), 10th edition 3

Introduction into Logistics Course Outline 13.05 SCM Concept, Inventory 14.05 Demand Management, Warehousing Management 15.05 Transportation Management, International Logistics 16.05 Poster Session

Warehousing Management CHAPTER 10 Warehousing Management 5 - 5

Learning Objectives To understand the role of warehouses and distribution centers in a logistics system To identify the various types and functions of warehouses To distinguish the various alternatives available in warehouse design To examine the different types of handling equipment available 6 - 5

Visser, Logistics: Principles, fig. 1 Visser, Logistics: Principles, fig.1.8 cost structure of physical distribution 7 - 5

Warehousing Management Transportation at zero miles per hour Warehousing emphasizes storage of products Distribution centers emphasize rapid movement of products through the facility Throughput is the amount of product entering and leaving a facility in a given time period Regrouping function: - Accumulating (bulk making)(increasing quantity) - Allocating (bulk breaking) (reducing quantity) - Assorting (building up a variety of products) - Sorting out(separating products into grades and qualities) Cross-docking (without putting into storage) 8 - 5

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Figure 10-2: Ideal facility for pure supplier consolidation (Full pallet movement) Other types: H, L, T, U 10 - 5

Fig. 10-1 Adding a Warehousing Facility: shorter-Haul Transporation Producer (Manufacturing) Warehouse facility (Inventory) Sales Retailer A Transportation (Distribution) Retailer B Warehousing management Retailer C Retailer A Transportation (Distribution) (Volume shipment) Transportation (Distribution) Retailer B Retailer C 11 - 1

Inspection + inspection Overview of the warehouse functions Incoming transport Receipt + inspection Put away Visser, Logistics: Principles, fig.10.4 Overview of the warehouse function Storage Warehouse functions Order picking Inspection + inspection Outbound transport 12 - 5

Figure 7-7: The Transportation Manager Consolidates Shipments Whenever He or She Can 13 - 5

Public, Private, Contract, and Multiclient Warehousing Private warehousing Owned or occupied on a long-term lease Offers control to owner Assumes both sufficient demand volume and stability so that warehouse remains full High fixed costs 14 - 5

Public, Private, Contract, and Multiclient Warehousing Public warehousing Public warehouses Occupational Safety and Health Administration (OSHA) Bonded storage warehouses Field warehousing 15 - 5

Public, Private, Contract, and Multiclient Warehousing Contract warehousing Contract warehousing (3PL warehousing) is a long-term arrangement providing unique warehousing services to one client Both vendor and client share the risks associated with the warehousing Less costly than private warehousing and more costly than public warehousing 16 - 5

Public, Private, Contract, and Multiclient Warehousing Multiclient mixes attributes of contract and public warehousing Limited number of customers 17 - 5

Design Considerations in Warehousing General considerations Quantity and character of goods must be known—product profiling Know the purpose to be served Storage Distribution Cross-docking 18 - 5

Design Considerations in Warehousing Trade-offs Product / material – What will be moved? Quantity / volume – How much will be moved? Route process sequence - Where will be moved to? Supporting services – Which support will the movements be made with? Time – When will the movements be made? 19 - 5

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Design Considerations in Warehousing Trade-offs Fixed versus variable slot locations for merchandise Fixed slot location Variable slot location 21 - 5

Design Considerations in Warehousing Build out (horizontal) versus build up (vertical) Order-picking versus stock-replenishing functions Two-dock versus single-dock layout Space devoted to Aisles versus Space Devoted to Storage Paperless Warehousing Virtual warehouse versus real warehouse Retail Storerooms 22 - 5

Warehousing Operations Storage and handling equipment Warehouse management systems (Auto ID Data Capture technology: barcode scanners, mobile computers, Wireless LANs, RFID) Employee safety Proper handling of waste materials Dunnage Hazardous materials Warehousing security Sanitation issues Stock controls 23 - 5

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Figure 10-8: Workplace safety issues 25 - 5

Warehousing Operations Labor-intensive versus mechanization versus automation Space devoted to aisles versus space devoted to storage Picker-to-part versus part-to-picker systems 26 - 5