Lec. 9: Warehousing

Question 1

Which items benefit from centralized warehousing?

Answer 1

High-value, low-volume goods, e.g. Silicon chips

Question 2

Which items benefit from decentralized warehousing?

Answer 2

Low-value, high-volume goods that may require shorter lead times

Question 3

What is the main difference between the conventional and the contemporary view on warehousing.

Answer 3

In the conventional view, warehousing is a costly necessity of an inefficient supply chain. In the contemporary view, key objectives are minimizing costs and adding value.

Question 4

What are the objectives of warehousing in terms of value adding?

Answer 4

• Improving quality during storage (aging whiskey, wine, cheese)
• Improving service associated with it (delivering information availability, or specialist packaging)
• Reducing costs (reducing packaging or administration costs)
• Reducing its lead time.

Question 5

How can warehousing add value?

Answer 5

• Creating bulk consignments
• Breaking bulk consignments
• Combining freight
• Smoothing supply to meet demand

Question 6

Define a “Milk run”

Answer 6

When a truck either deliver product from a single supplier to multiple reailers, or from multiple suppliers to a single retailer

Question 7

Describe the Hub and spoke model, and explain how it is more efficient than a point-to-point system.

Answer 7

Based on centralization in a central hub.
This requires only n-1 routes to connect all nodes, while a point-to-point system, which requires n(n-1)/2 routes to connect all nodes.

Question 8

Outline the 4 core functions of warehousing.

Answer 8

1. Goods receiving
2. Put away into storage
3. Order picking & packing
4. Goods dispatch

Question 9

Define replenishment

Answer 9

Moving goods from reserve storage locations to pick location. This is normally triggered by quantity at pick location falling below a predefined level.

Question 10

Describe a picking list.

Answer 10

When an order is received, a “picking list” is made, containing information on ordered items.

Question 11

Explain Cross-docking

Answer 11

The process of bypassing the storage areas in warehouses and distribution centres.

Question 12

When should cross-docking by applied?

Answer 12

Cross-docking should be applied unless it prevents a required value-adding activity. In any other case, storage is costly and non-value adding, and thus, it should be avoided.

Question 13

What is an Enterprise Ressource Planning (ERP)?

Answer 13

A system, defining the material requirements that are then transmitted to a warehouse or distribution center.

Question 14

What is a Warehouse Management System (WMS)?

Answer 14

A system that manages the information within the warehouse or distribution center

Question 15

What is a Forklift in Danish?

Answer 15

Gaffeltruck

Question 16

What is a “gaffeltruck” in English?

Answer 16

Forklift

Question 17

What are the two main types of palletised storage?

Answer 17

These are “dense” storage systems and “individual access” systems

Question 18

Explain Block stacking and its main pros and cons

Answer 18

Dense storage, simply stacking on the ground (LIFO)
Pro: use of floor space
Con: Height restrictions

Question 19

Explain Drive-in racking and its main pros and cons

Answer 19

Dense storage, having a basic frame to support block stacking (LIFO)
Pro: Height restrictions, high density storage, allows stacking in columns
Con: Inability to load levels independently

Question 20

Explain Pushback racking and its main pros and cons

Answer 20

Dense storage, tilting the rows forward, letting gravity drive pallets forward (LIFO)
Pro: Each level can be loaded independently, great with large number of SKUs
Con: Inability to access pallets in the back

Question 21

Explain Pallet live storage and its main pros and cons

Answer 21

Dense storage, tilting the rows backwards, allowing them to be picked up in the back (FIFO)
Pro: FIFO, preferable for lifed items
Con: Inability to acces pallets in the front

Question 22

Explain Powered mobile racking and its main pros and cons

Answer 22

Dense storage, allowing rack to be moved
Pro: High density
Con: High cost solution, slow operating time, safety

Question 23

Explain Adjustable pallet racking (APR) and its main pros and cons

Answer 23

Individual access system, allows for loading of both palletised and non-palletised freight. Access from both sides
Pro: Affordability and flexibility
Con: Poor floorspace utilization

Question 24

Explain Narrow Aisle racking and its main pros and cons

Answer 24

Individual access system, same as APR, but with narrower aisles, with customized trucks
Pro: Good floorspace utilisation
Con: Expensive

Question 25

Explain Automated storage and retrieval system and its main pros and cons

Answer 25

Individual access system, automating everything
Pro: Good for high volumes and high densities, common for finished goods
Con: avoids high labor costs

Question 26

What are the 3 min categories of order-picking?

Answer 26

1) Picker-to-goods - Good for high density (finding many different products in one sequence)
2) Goods-to-picker - Effective when density is low
3) Automated-picking - High variety and and high volumes

Question 27

What are the 4 principles of Socio-technical systems (STS) theory?

Answer 27

• Joint optimisation of the technical and social system
• Quality of work life
• Employee participation in system design
• Semi-autnomous work groups

Question 28

What are the 5 main types of “dense” storage systems

Answer 28

• Block stacking
• Drive-in racking
• Push-back racking
• Pallet live storage
• Powered Mobile Racking

Question 29

What are the 3 main types of “individual access” storage systems?

Answer 29

• Adjustable Pallet Racking (APR)
• Narrow Aisle Racking
• Automated storage and retrieval systems

Question 30

What is the key benefit of racking rather than stacking?

Answer 30

Better ability to sort goods.

Question 31

What is the key benefits and drawbacks of “dense storage” over “individual access”?

Answer 31

Dense storage is good when you have many product within the same product. Individual access it however better when you need to access each product separately.