Lec. 9: Warehousing Flashcards
Which items benefit from centralized warehousing?
High-value, low-volume goods, e.g. Silicon chips
Which items benefit from decentralized warehousing?
Low-value, high-volume goods that may require shorter lead times
What is the main difference between the conventional and the contemporary view on warehousing.
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.
What are the objectives of warehousing in terms of value adding?
- 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.
How can warehousing add value?
- Creating bulk consignments
- Breaking bulk consignments
- Combining freight
- Smoothing supply to meet demand
Define a “Milk run”
When a truck either deliver product from a single supplier to multiple reailers, or from multiple suppliers to a single retailer
Describe the Hub and spoke model, and explain how it is more efficient than a point-to-point system.
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.
Outline the 4 core functions of warehousing.
- Goods receiving
- Put away into storage
- Order picking & packing
- Goods dispatch
Define replenishment
Moving goods from reserve storage locations to pick location. This is normally triggered by quantity at pick location falling below a predefined level.
Describe a picking list.
When an order is received, a “picking list” is made, containing information on ordered items.
Explain Cross-docking
The process of bypassing the storage areas in warehouses and distribution centres.
When should cross-docking by applied?
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.
What is an Enterprise Ressource Planning (ERP)?
A system, defining the material requirements that are then transmitted to a warehouse or distribution center.
What is a Warehouse Management System (WMS)?
A system that manages the information within the warehouse or distribution center
What is a Forklift in Danish?
Gaffeltruck
What is a “gaffeltruck” in English?
Forklift
What are the two main types of palletised storage?
These are “dense” storage systems and “individual access” systems
Explain Block stacking and its main pros and cons
Dense storage, simply stacking on the ground (LIFO)
Pro: use of floor space
Con: Height restrictions
Explain Drive-in racking and its main pros and cons
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
Explain Pushback racking and its main pros and cons
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
Explain Pallet live storage and its main pros and cons
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
Explain Powered mobile racking and its main pros and cons
Dense storage, allowing rack to be moved
Pro: High density
Con: High cost solution, slow operating time, safety
Explain Adjustable pallet racking (APR) and its main pros and cons
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
Explain Narrow Aisle racking and its main pros and cons
Individual access system, same as APR, but with narrower aisles, with customized trucks
Pro: Good floorspace utilisation
Con: Expensive
Explain Automated storage and retrieval system and its main pros and cons
Individual access system, automating everything
Pro: Good for high volumes and high densities, common for finished goods
Con: avoids high labor costs
What are the 3 min categories of order-picking?
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
What are the 4 principles of Socio-technical systems (STS) theory?
- Joint optimisation of the technical and social system
- Quality of work life
- Employee participation in system design
- Semi-autnomous work groups
What are the 5 main types of “dense” storage systems
- Block stacking
- Drive-in racking
- Push-back racking
- Pallet live storage
- Powered Mobile Racking
What are the 3 main types of “individual access” storage systems?
- Adjustable Pallet Racking (APR)
- Narrow Aisle Racking
- Automated storage and retrieval systems
What is the key benefit of racking rather than stacking?
Better ability to sort goods.
What is the key benefits and drawbacks of “dense storage” over “individual access”?
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.
