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ISQA 429

ISQA 429. Warehousing Material Handling. Warehousing. Functions of Warehouses Storage Consolidation Product Mixing Cross Dock Sorting Order Processing Postponement Security. Warehouse Operations. Receiving Correct Numbers of Packages Freight Damage Match Paperwork

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ISQA 429

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  1. ISQA 429 Warehousing Material Handling

  2. Warehousing • Functions of Warehouses • Storage • Consolidation • Product Mixing • Cross Dock Sorting • Order Processing • Postponement • Security

  3. Warehouse Operations • Receiving • Correct Numbers of Packages • Freight Damage • Match Paperwork • Match Goods to Paperwork • Movement • Mechanical (Fork Lifts, Pallet Jacks) • Automated (Conveyors, ASRS) Storage

  4. Warehouse Operations • Storage • Put-Away Process (Assigned or Random) • Order Processing • Pull • Pack • Ship • Inventory Replenishment • Order Quantities • Order Frequency

  5. Warehouse Operations • Value Added Services • Inventory Control (Bar Code, RFID) • Damage Control • Sustainability • Energy Use • Recycling • Trash Minimization • Housekeeping • Maintenance

  6. Warehouse Types • Public • Contract / Third Party • Private • Bonded Warehouses • Foreign Trade Zones

  7. Principles of Warehouse Layout • One Story Design • Move Goods in Straight Line • Efficient Material Handling Equip. • Efficient Storage Plan • Fast Movers Up Front • Complementary Products Together • Minimize Mispicks • Minimize Aisle Space • NEVER Dead End Aisles • Use Full Cube of Building

  8. Warehouse Operating Costs • Shipping 15% • Receiving 15% • Storage 20% • Order Picking 50%

  9. Warehouse Operating Costs • Minimize Picking Costs & Errors • Issue In Standard Quantities (Minimizes Counting) • Separate Similar Products • Minimize Picker Travel • Take Inventory to Picker • Order Batching

  10. Warehouse Issues • Demand Level, Volatility • Demand Stability, Seasonality • Need for Control • Numbers, Locations • Layout • Stocking Plans • Automation and Material Handling • Security • Standardization

  11. Warehouse/Inventory Costs • Inventory Carrying Costs (Excl Whse) • Warehousing Costs • Transportation Costs • Cost of Lost Sales • Objective: Minimize the Combination

  12. Impact of Warehouse Numbers on Inventory Levels 1 Warehouse 100% 2 141% 3 173% 4 200% 5 224% 10 316% Maintains a given service level

  13. Square Root Rule New Inventory Level = Old Inventory Level X Square Root of Number of New Warehouses/Number of Old Warehouses This Maintains the Same Service Level

  14. Packaging • Containment • Protection • Apportionment • Unitization • Convenience • Communication • Conveyorization

  15. Packaging • Identification • Product • Handling Requirements • Hazardous • Legal Requirements (Ingredients, etc.) • Marketing • Reverse Logistics • Recycling

  16. Columbia Sportswear • No Open Toe Shoes • No Loose Clothing – long scarves, etc. • Automation • Conveyor System • Inventory Put-Away • Sorter • Order Picker Computers • Number of Countries on Boxes

  17. Assignments • Tour Reaction Paper • Let There Be Light case • P 216 All Questions • Due Feb. 10th

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