Introduction into Logistics

PhD Natasha LutovinovaLogistics Lecturer

E-mail: Lutovinova.N@nhtv.nlRoom: G1.006

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

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Introduction into Logistics Course Outline

12.05 Introduction

13.05 SCM Concept, Inventory

14.05 Demand Management, Warehousing Management

15.05 Transportation Management, International Logistics

16.05 Poster Session

CHAPTER 10

Warehousing Management

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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

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Warehousing ManagementTransportation 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)

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Figure 10-2: Ideal facility for pure supplier

consolidation (Full pallet movement)

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Retailer A

Producer (Manufacturing)

Warehouse facility (Inventory)

Transportation(Distribution)

Sales

Retailer B

Retailer C

Retailer A

Retailer B

Retailer C Warehousing management

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Transportation(Distribution)

Transportation(Distribution)(Volume shipment)

Overview of the warehouse functions

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Incoming transport

Put away

Storage

Order picking

Inspection + inspection

Outbound transport

Receipt + inspection

Warehouse functions

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

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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

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Public, Private, Contract, and Multiclient Warehousing

• Public warehousing– Public warehouses– Occupational Safety and Health Administration

(OSHA)– Bonded storage warehouses– Field warehousing

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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

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Public, Private, Contract, and Multiclient Warehousing

• Multiclient warehousing– Multiclient mixes attributes of contract and public

warehousing– Limited number of customers

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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

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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?

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Design Considerations in Warehousing

• Trade-offs

• Fixed versus variable slot locations for merchandise– Fixed slot location– Variable slot location

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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

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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

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Figure 10-8: Workplace safety issues

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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

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