Logistics- Chapter 10- warehousing management

design considerations in warehousing

1. trade-offs 2. fixed versus variable slot locations for merchandise 3. build out versus build up 4. order-picking versus stock-replenishing functions 5. two-dock versus single-dock layout 6. conventional, narrow, or very narrow aisles 7. degree of warehouse automation 8. other space needs

warehousing operations

1. warehousing productivity analysis 2. safety consideration

contract warehousing

a long term mutually beneficial arrangement which provides unique and specially tailored warehousing and logistics services exclusively to one client, where the vendor and client share the risks associated with the operation -tends to be less costly than private warehousing but more costly than public warehousing

assorting

building up a variety of different products for resale to particular customers

fixed slot location

each SKU has one or more permanent slots assigned to it -can provide stability in order picking in the sense that the company should always know where a specific SKU is located -low space utilization

allocating

involves breaking larger quantities into smaller quantities

accumulating

involves bringing together similar stocks from different sources

variable slot location

involves empty storage slots being assigned to incoming products based on space availability -more efficient space utilization, from an order picking perspective it requires a near-perfect information system because there must be flawless knowledge of each product's location

regrouping function

involves rearranging the quantities and assortment of products as they move through the supply chain and can take four forms- accumulating, allocating, assorting and sorting out

private warehousing

is owned by the firm storing goods in the facility; private warehousing generates high fixed costs and thus should only be considered by companies dealing with large volumes of inventory -high fixed costs can be spread out over more units of inventory, thus reducing the cost per unit of storage -access to products when needed

multiclient warehousing

mixes attributes of contract and public warehousing -limited number of customers between 2 to 12 -services are purchased through contracts that cover at least one year -attractive to smaller organizations

sorting out

refers to separating products into grades and qualities desired by different target markets

public warehousing

serves all legitimate users and has certain responsibilities to those users -requires no capital investment on the user's part, which can certainly be an important consideration when the cost of borrowing money is high -user rents space as needed -able to select and manage personnel

warehousing

that part of a firm's logistics system that stores products at and between points of origin and point of consumption and transportation are substitutes for each other, with warehousing having been referred to as transportation at zero miles per hour

warehouse automation

utilizing mechanical or electronic devices to substitute for human labor