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Warehousing

Chapter8ChapterOutlineSpaceRequirementsTypicalStraight-thruFlowDesignofWarehousingTypicalStraight-thruFlowDesignofWarehousingTheMainActivitiesinaWarehousePartISpaceArrangementandWarehousingActivitiesPartII

TypesofWarehousing

OverviewofWarehousingPublicWarehousesValue-addedWarehousingPartIII

SupplementaryReading:Cross-DockingCrossdockWhyCross-dockingisPopularAmongRetailers?CriteriaforUsingCross-dockingOperationsPartI

SpaceArrangementandWarehousingActivitiesSpaceRequirementsThefirststepforwarehouselayoutistodeterminetheoverallspacerequirementsforallwarehouseprocesses.Thespacerequirementsforeachprocessshouldbecomputedandsummarizedtoestimatetheoverallbuildingrequirements.Anexampleforspacerequirementsforawarehouseisprovidedintable8-1.Table8-1WarehouseSpaceRequirementsProcessFloorspacerequirement(Sq.Feet)NotesandComments1.Receivingstaging30,000Assuming80%utilization2.Palletstorage120,000Atpeakinventory3.Casepicking25,000

4.Brokencasepicking15,000

5.Packing&unitizing15,000

6.Customizing20,000Assumes10%growthinvalue-addedservice7.Accumulation&sortation30,000

8.Shippingstaging30,000

9.Cross-docking15,000

10.Warehouseoffices15,000

11.Restrooms5,000

Subtotal320,000

Interactivityaisleallowance64,000@20%ofsubtotalTotal384,000

Spaceforreceivingandshippingisafunctionofthenumberofreceivingandshippingdockdoorsandtheturnaroundtimeforeachdock.Acommonpracticeistoallocateenoughstagingspacebehindeachdockdoortoaccommodateatruckload’sworthofmaterial.Floorspacerequirementsforpalletstorageandretrieval,casepicking,andbrokencasepickingshouldbecomputedaspartofthestorageanalysis.Floorspacerequirementsforpacking,unitizing,customizing,accumulation,andsortationshallconsiderthespaceneededforeachworkstation,thenumberofworkstationsrequired,andthematerialhandlingmethodsused.TypicalStraight-thruFlowDesignofWarehousingWarehousingactivityisanimportantlinkbetweentheproducerandthecustomer.Toillustratetheactivitiesinageneralwarehouse,wewillfirstlearnitsbasiclayout,whichcanbeclassifiedintofourtypes,accordingtotheactivitiesflowplanning:U-shaped,

straight-thru,modular-spine,ormultistoryflowpattern.Figure8-1illustratesanexampleofstraight-thruflowdesign.Itworkswellforoperationsinwhichthepeakreceivingandshippingtimescoincide.

Fig.8-1Company-operatedwarehouseactivitiesDespitethenameorrole,warehouseoperationshaveafundamentalsetofactivitiesincommon.Thefollowingactivitiesareperformedtosomedegreeinallwarehousingoperations.However,oneormoreofthemmaynotexistinagivenwarehouseorarecombinedwithotheractivities.Merchandiseandmaterialsarriveatwarehousesinlargequantityshipments.Thefirstactivityisreceiving.

TheMainActivitiesinaWarehouseMaterialreceiving:

Receivingisusuallytheunloadingofhighvolumeofsimilarproduct.Itinvolvesphysicallyacceptingmaterials,unloadingitfromthetransportationfacilities,verifyingquantityandconditionofthematerial,anddocumentingthisinformationasrequired.Lifttruckscanbeusedforreceiving.Removethegoods:Put-awaymeansremovingthegoodsfromthereceivingarea,transferthemtoastoragearea,movingthemtoaspecificlocationandrecordingthismovement.Thismovementismostlyhandledbyalifttruck.

Storage:Storageisthephysicalcontainmentofmerchandisewhileitisawaitingademand.Thestoragemethoddependsonthesizeandquantityoftheitemsininventoryandthehandlingcharacteristicsoftheproductoritscontainer.ReplenishmentReplenishmentoccurswhenmaterialisrelocatedfromstoragetoatemporaryresupplyareafromwhichordersaredirectlyfilled.Pickingproductaccordingtoorders

:

OrderSelectionisoneofthemajoractivitieswithinwarehouses.Itinvolvespickingtherequiredquantityofspecificproductsformovementtoapackingarea.Foreachorder,thecombinationofproductsmustbeselectedandpackagedtomeetspecificcustomerorderrequirements.Thetypicalselectionprocessiscoordinatedbyawarehousemanagementsystem.ChecktheproductsselectedCheckingmeansverifyinganddocumentingorderselectionintermsofproductnumberandquantity.

ProductpackingandlabelingPacking&markingreferstoplacingoneormoreitemsofanorderintoanappropriatecontainerandlabelingthatcontainerwithcustomershippingdestinationdataaswellasotherhandlinginformationthatmayberequired.Staging&consolidationforshippingStaging&consolidationmeansphysicallymovingmaterialfromthepackingzonetoashippingareabasedonaprescribedinstructionsrelatedtoaparticularoutboundvehicleordeliveryroute.Itmayinvolvesthesortationofbatchpickedforindividualordersandaccumulationofdistributedpickswhenanorderhasmorethanoneitemandtheaccumulationisnotdoneandthepicksaremade.LoadingonanoutboundvehicleShippinginvolvesloadingatransportationvehiclewithmaterialfromthestagingarea.Firmsmayuseconveyorsorlifttruckstomoveproducts.Shipmentcontentcheckingistypicallyrequiredwhenproductchangesownership.Itoftenincludethefollowingtasks:

Packagingmerchandiseinappropriateshippingcontainers;

Preparingshippingdocuments,includingpackinglists,addresslabelsandbillsoflading;

Weighingshipmentstodetermineshippingcharges;

Accumulatingordersbyoutboundcarrier;

Loadingtrucks(inmanycases,thisisacarrier’sresponsibility).AdministrationClerical/Officeadministrationreferstoallofthetasksrelatedwithkeepingtrackofitemsastheymoveinto,through,andoutofthewarehouse.

ObjectiveofwarehousingTheobjectiveofwarehouseoperationistoefficientlyreceiveinventory,possiblystoreituntilrequiredbythemarket,assembleitintocompleteorders,andinitiatemovementtocustomer.NewWordsandExpressionswarehousing/ˈweəhaʊzɪŋ/n. 入库;仓储floorspace/ˈflɔːspeɪs/ n.

占地面积unitize/ˈjuːnətaɪz/v. 单元化customize/ˈkʌstəmaɪz/v.

客户定制layout/ˈleɪaʊt/n.

布局;设计orderpick 订单分拣package/ˈpækɪdʒ/n. 包装;包装材料staging/ˈsteɪdʒɪŋ/v. 分批运输shippingdock 出货站台unload/ʌnˈləʊd/v. 卸下verify/ˈverɪfaɪ/v. 查验,验证lifttruck 叉车identify/aɪˈdentɪfaɪ/v. 确定,识别modular/ˈmɒdjələ/adj. 模块的coincide/ˌkəʊənˈsaɪd/v. 一致,符合sortation/sɔːˈteɪʃən/n. 分类accumulation/əˈkjuːmjəleɪt/n.

积聚,堆积物consolidate/kənˈsɒlədeɪt/v. 整合,合并,巩固administration/ədˌmɪnəˈstreɪʃən/n. 管理PartII

TypesofWarehousingOverviewofwarehousingDifferentformsofwarehousesWarehousingisanintegralpartofalogisticssystem.Thereareestimated750,000warehousefacilitiesworldwide,includingprofessionallymanagedwarehouses,andcompanystockrooms,garagesandevengardensheds.Twooptionsofwarehousing:public&privatewarehousing:Whenafirmdecidestostoreproduct,itfacestwowarehousingoptions:rentedfacilities,calledpublicwarehousing,orownedorleasedfacilities,calledprivatewarehousing.Comparingthetwooptions:Firmsmustexaminecloselytochoosebetweenthetwooptions.Forexample,thepriceofapublicwarehouseismostprobablyhigherbecauseitwillbeoperatedataprofit;itmayalsohavesellingandadvertisingcost.However,afirmmakesnoinitialinvestmentinthefacilities.Forcustomerservice,privatewarehousingcangenerallyprovidehigherservicelevelsbecauseofitsmorespecializedfacilitiesandequipment,anditsbetterfamiliaritywiththefirm’sproducts,customersandmarket.

Insomeinstances,innovativepublicwarehousescanprovidehigherlevelsofserviceowningtotheirexpertiseandstrongcompetitivedrivetoservethecustomer.Inthefollowing,wewilldiscussaboutpublicwarehousing.PublicWarehousesTypesofpublicwarehouses:PublicWarehouses.Therearemanytypesofpublicwarehouses,including:(1)generalmerchandisewarehousesformanufacturedgoods(2)refrigeratedstoragewarehouses(3)bondedwarehouse(4)specialcommoditywarehouses(5)bulkstoragewarehousesWarehousesforgeneralmerchandise:General

MerchandiseWarehouse.Thegeneralmerchandisewarehouseisprobablythemostcommonform.Itisdesignedtobeusedbymanufacturers,distributors,andcustomersforstoringalmostanykindofproduct.Warehousesforrefrigeratedproducts:RefrigeratedWarehouses.

Refrigeratedorcoldstoragewarehousesprovideatemperature-controlledstorageenvironment.Theytendtobeusedforpreservingperishableitemssuchasfruitsandvegetables.However,anumberofotheritems(e.g.,frozenfoodproducts,somepharmaceuticals,photographicpaperandfilm,andfurs)requirethistypeoffacility.Warehousesforspecialcommodities:SpecialCommodityWarehouses.Specialcommoditywarehousesareusedforparticularagriculturalproducts,suchasgrains,wool,andcotton.Ordinarilyeachofthesewarehouseshandlesonekindofproductandoffersspecialservicesspecifictothatproduct.

Warehousesforbondedproducts:Bonded

Warehouses.

Somegeneralmerchandiseorspecialcommoditywarehousesareknownasbondedwarehouses.Goodssuchasimportedtobaccoandalcoholicbeveragesarestoredinthistypeofwarehouse,althoughthegovernmentretainscontrolofthegoodsuntiltheyaredistributedtothemarketplace.Theadvantageofthebondedwarehouseisthattheimportdutiesneednotbepaiduntilthemerchandiseissold,sothattheimporterhasthefundsonhandtopaythesefees.WarehousesforbulkcargoesBulkStorageWarehouses.

Bulkstoragewarehousesprovidetankstorageofliquidsandopenorshelteredstorageofdryproductssuchascoal,sand,andchemicals.

Value-addedWarehousingSevenwaysofaddingvalueinwarehousingWarehousingoperationshavepotentialtoaddnewvaluetocustomers.StorageAccumulation.Itreferstotheuseofawarehousetostockpileandtohandleoverflow.Suchoverflowcapabilitiesareneededintwosituations:

Oneinvolvesseasonalproductionandleveldemand;theotherarisesfromlevelproductionandlumpydemand.

Postponement.Postponementmeanstheuseofawarehouseasafinalstepdefermentorpostponementuntilacustomerplacesanorderforaspecificquantity.Hereistheopportunitytomanufacturelongrunsofastandardproductandstoreitinlargequantitieswithoutfearofhavingtoomuchofanything.

Itallowsyoutoreduceyourinventoryvolumeoffinishedproductwhilestillprovidingahighlevelofservice.

SevenwaysofaddingvalueinwarehousingOrderConsolidation.Itusesawarehousetogatherproductwhichistobeshippedtoafinaldestination.Thistypeofoperationisusedtoassembleanorderoffinishedproductsfromseveraldifferentsources.HubandSpokeDistribution.Inahubandspokeconcept,fulltruckloadsofproductarereceivedintothehubDC(thehubwheretheloadisbrokendownforredistribution)and/oritiscrossdockedtothelimitedlineitem(smallerspokes)DCsdownstreamonadailybasis.Thistypeofdistributionoperationwillbeanetworkoflargeregionalorcentralized,full-lineitemDCsthatsupportoutlying,limitedlineitemDCsdownstreamfromthehubDCfacility.

SevenwaysofaddingvalueinwarehousingProductTransformation.Producttransformationmeanseitherusingofawarehouseasacentralgatheringpointfortransformingaproducttoashelf-readystateinamanufacturingorretailenvironmentoralteringinventorytomeetcustomerspecifications.Thismayincludesuchvalue-addedservicesaslightassembly,configuration,packagingandlabeling,kitting,orcustomunitloading.

OrderAssembly.Orderassemblyreferstotheuseofawarehousetofulfillunpredictableorderpatterns,toaccommodateabroadSKUmixandshipsame-dayorders,aswellastousecrossdockswheneverpossible.Thismayalsoincludevalue-addedservicesaskitting,sequencing,pre-assembly,packaging,unitizing,tagging,labeling,andticketing.

SevenwaysofaddingvalueinwarehousingProductMixing.Productmixingrefersusingofawarehousetocombineitemsintheentireproductlineforasinglemanufacturerfromproduct-orientedmanufacturingfacilitiesindifferentlocations.Thisconceptallowsthosecustomerswhowishtoordermixedpalletloads,truckloads,orcontainerloadsoftheentireproductline.

NewWordsandPhrasesintegral/ˈɪntəɡrəl/adj.facility/fəˈsɪləti/n.stockroom/ˈstɒkrʊm/n.familiarity/fəˌmɪliˈærəti/n.innovative/ˈɪnəvətɪv/adj.perishable/ˈperɪʃəbəl/adj.pharmaceutical/ˌfɑːməˈsjuːtɪkəl/n.customerservicecompetitivedrivespecializedfacilitiesprivatewarehousingpublicwarehousingbulk/bʌlk/adj.bulkcargophotographicpapertemperature-controlledshelter/ˈʃeltə/n.postponement/pəʊstˈpəʊnmənt/n.hubandspokeassembly/əˈsembli/v.n.完整的,必需的组成部分设施,设备,工具储藏室熟悉,了解创新的,革新的易腐烂的,易变质的药物客户服务竞争驱动力特殊设施,专用设施自用仓库公共仓库大量的,大批的大宗散装货物照相纸温控的掩蔽处,遮蔽处延期,推迟;延期的事轴辐式装配,集会;[机]装配,供装配的零件PartIII

SupplementaryReadingCross-dockingCrossdock:Crossdocksarehighspeedwarehouses.Ifanarrivingitemhasalreadybeenrequestedbyacustomer,thereisnoneedtostoreitasanticipationinventory;instead,theitemcanmovedirectlyfromreceivingtoshipping,withoutintermediatestorageandretrieval.Thustheitemcanmovemuchmorequicklythroughthefacilityandthemostcostlypartofwarehouselaborcanbeavoided.Inahigh-volumecrossdocktheturnovertimesmaybemeasuredinhours.Tosupportthisvelocityofmovement,acrossdockmaybenothingmorethanaslabofconcretewitharoofandwallspunctuatedwithdoorsfortrailers.Freightispulledoffarrivingtrailers,sortedandloadedontodepartingtrailerswithoutintermediatestorage.

Thereislittleornostorageprovidedinacrossdockbecauseitemsdonotstaylongenough;butthereisgenerallyalotofmaterial-handlingequipment,suchasforkliftsandpalletjacks,tomovefreight.Laborisfrequentlythemaincostanditisdevotedtounloadingincomingtrailers,movingthefreighttotheappropriateoutgoingtrailers,andloading.Consequently,theissueswithinacrossdockarethoseofmaterial-handlingandproductflowratherthanlocationandretrieval.

Fig.8-3CrossdocksbuiltinvarioustypesWhycross-dockingispopularamongretailers?Becauseofitsimpactoncostsandcustomerservice,cross-dockingisbecomingpopular,especiallyamongretailers.Forexample,approximately75percentoffooddistributioninvolvesthecross-dockingofproductsfromsuppliertoretailfoodstores.Thebiggestimpactofacrossdockisonreducingtransportationcosts.Thiscanbeachievedbyconsolidatingmultipleshipmentssothatfulltruckloadscanbesent.TheHomeDepotisamajorretailerandthelargestuserofLess-than-Truck-Load(LTL)shippinginNorthAmerica.Nowadays,LTLcostsabouttwicethecostofTruckLoad(TL)shipping,sothereisastrongincentivetofilltrailers.TheHomeDepothasbegundoingthisbyhavingvendorsshipfulltrailerstoitscrossdock.(Thetrailersarefullbecausetheyholdproductformanystores.)Atthecrossdocktheproductissortedoutforindividualstoresandconsolidatedwithproductfromothervendorsboundforthesamestore.Theresultisthateachstorehasenoughfreightorafewcloseneighborsgenerateafulltruckloadfromthecrossdock.Theresultcanbeconsiderablesavings.Additionalbenefitsincludelessinventory(becauseallproductflowsrightthrough)andlesslabor(becauseproductdoesnothavetobeputawayandlaterretrieved).

CriteriaforUsingCross-dockingCross-dockingshouldbeconsideredasanoptionbyfirmsmeetingtwoormoreofthefollowingcriteria:

Inventorydestinationisknownwhenreceived.

Customerisreadytoreceiveinventoryimmediately.

Shipmenttofewerthan200locationsdaily.

Dailythroughputexceeds2,000cartons.

Morethan70percentoftheinventoryisconveyable.

Largequantitiesofindividualitemsreceivedbyfirm.

Inventoryarrivesatfirm’sdocksprelabeled.

Someinventoryistimesensitive.

Firm’sdistributioncenterisnearcapacity.

Someoftheinventoryisprepriced.OperationsMostcrossdockingfreightterminalsarelaidoutaslong,narrowwarehouseswithdoorsaroundtheperimeter.Fig.7-5illustratesatypicalterminal,wherethesmallshadedrectanglesrepresentincomingtrailerswithfre

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