lecture 7 (1) Flashcards
Functions of a warehouse
Creating bulk (get more than transporting)
Breaking bulk (transport more than get)
Combining goods (combine components of bike into bike)
Smoothing (Holding buffer stock to decouple lean production from the agile supply of goods to the market
Activities within a warehouse
Four activities are always performed, irrespective of the scale of a warehouse or its role in the supply chain
May involve many processes which must be designed to suit the freight and materials being handled and stored, and to minimize movements and handling
Processes are standardized to reduce human error and therefore maintain the quality of the freight
activites within a warehouse (thread)
Goods receiving —> Put away into storage
or cross dock
–>
order picking and packaging –>
Goods dispatch
Cross docking
bypasses the storage areas in warehouses and distribution centers
Storage is avoided unleyy the freight requires a value-adding activity
Typically employed for fast moving freiht with constant demand that spends less than 24 hours on site
Key enabler of quick response logistics as it maintains the flow of freight and reduce lead time
Hub and spoke
combines consolidation and cross docking
Warehouse is hub, and the points it serves are spokes
Incoming goods sorted to consolidation areas
Located to minimize the distance that goods travel
Common warehouse layouts
A straight operation flow
A U operation with conveyors
An L flow operation with conveyor
A straight operation flow
Shipping
Picking face
A A A
A A A
B B B
C C C
Goods receipt
A: most ordered
B: less ordered
C: rarely ordered
A U flow operation with conveyors
Locations in two columns (1-4 & 4-8)
Assembly order from location 8 (top) down and around to 5, 1 and then up to 4
Goods receipt flow in from the top, down the middle between the two columns
An L flow operation with conveyor
Goods receipt come in from top right and flow inbetween thee columns
A A A
—> Picking face ->
B B B Shipping
—> Picking face ->
C C C
^
picking face
flows –> ^
A: most ordered
B: less ordered
C: rarely ordered
Logistics driven location decisions
Proximity to customers
Business climate
Total costs
Infrastructure
Quality of labor
Suppliers
Other facilities
Proximity to customers
Helps ensure that customer needs are incorporated into products; fast and frequent delivery
Business climate
Can include presence of similar sized businesses in the same industry, and other foreign companies
Total costs
The objective is to select a site with the lowest total cost
Infrastructure
Adequate road, rail, air, and sea transportation along with energy and telecommunications
