Introduction into Logistics Ph D Natasha Lutovinova Logistics

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Introduction into Logistics Ph. D Natasha Lutovinova Logistics Lecturer E-mail: Lutovinova. N@nhtv. nl Room:

Introduction into Logistics Ph. D Natasha Lutovinova Logistics Lecturer E-mail: Lutovinova. [email protected] nl Room: G 1. 006

Handbook: Paul R. Murphy & Donald F. Wood, Contemporary logistics (New Jersey 2011), 10

Handbook: Paul R. Murphy & Donald F. Wood, Contemporary logistics (New Jersey 2011), 10 th edition 3

Introduction into Logistics Course Outline 12. 05 Introduction 13. 05 SCM Concept, Inventory 14.

Introduction into Logistics Course Outline 12. 05 Introduction 13. 05 SCM Concept, Inventory 14. 05 Demand Management, Warehousing Management 15. 05 Transportation Management, International Logistics 16. 05 Poster Session

CHAPTER 10 Warehousing Management 5 -5

CHAPTER 10 Warehousing Management 5 -5

Learning Objectives • To understand the role of warehouses and distribution centers in a

Learning Objectives • To understand the role of warehouses and distribution centers in a logistics system • To identify the various types and functions of warehouses • To distinguish the various alternatives available in warehouse design • To examine the different types of handling equipment available 6 -5

Visser, Logistics: Principles, fig. 1. 8 cost structure of physical distribution 7 -5 Cost

Visser, Logistics: Principles, fig. 1. 8 cost structure of physical distribution 7 -5 Cost structure of physical distribution Warehousing, packaging, handling External transport Others Inventory costs 22% 38% 6% 34%

Warehousing Management Transportation at zero miles per hour 8 -5 • Warehousing emphasizes storage

Warehousing Management Transportation at zero miles per hour 8 -5 • Warehousing emphasizes storage of products • Distribution centers emphasize rapid movement of products through the facility • Throughput is the amount of product entering and leaving a facility in a given time period • Regrouping function: • - Accumulating (bulk making)(increasing quantity) • - Allocating (bulk breaking) (reducing quantity) • - Assorting (building up a variety of products)

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9 -5

Figure 10 -2: Ideal facility for pure supplier consolidation (Full pallet movement) 10 -

Figure 10 -2: Ideal facility for pure supplier consolidation (Full pallet movement) 10 - 5

Fig. 10 -1 Adding a Warehousing Facility: shorter-Haul Transporation 11 - 1 Producer (Manufacturing)

Fig. 10 -1 Adding a Warehousing Facility: shorter-Haul Transporation 11 - 1 Producer (Manufacturing) Warehouse facility (Inventory) Sales Retailer A Transportation (Distribution) q Retailer B Retailer C Warehousing management Retailer A Transportation (Distribution) (Volume shipment) Transportation (Distribution) Retailer B Retailer C

Visser, Logistics: Principles, fig. 10. 4 Overview of the warehouse function Incoming transport Receipt

Visser, Logistics: Principles, fig. 10. 4 Overview of the warehouse function Incoming transport Receipt + inspection Put away Storage Order picking Inspection + inspection Outbound transport 12 - 5 Overview of the warehouse functions Warehouse functions

Figure 7 -7: The Transportation Manager Consolidates Shipments Whenever He or She Can 13

Figure 7 -7: The Transportation Manager Consolidates Shipments Whenever He or She Can 13 - 5

Public, Private, Contract, and Multiclient Warehousing • Private warehousing – Owned or occupied on

Public, Private, Contract, and Multiclient Warehousing • Private warehousing – Owned or occupied on a long-term lease – Offers control to owner – Assumes both sufficient demand volume and stability so that warehouse remains full – High fixed costs 14 - 5

Public, Private, Contract, and Multiclient Warehousing • Public warehousing – Public warehouses – Occupational

Public, Private, Contract, and Multiclient Warehousing • Public warehousing – Public warehouses – Occupational Safety and Health Administration (OSHA) – Bonded storage warehouses – Field warehousing 15 - 5

Public, Private, Contract, and Multiclient Warehousing • Contract warehousing – Contract warehousing (3 PL

Public, Private, Contract, and Multiclient Warehousing • Contract warehousing – Contract warehousing (3 PL warehousing) is a longterm arrangement providing unique warehousing services to one client – Both vendor and client share the risks associated with the warehousing – Less costly than private warehousing and more costly than public warehousing 16 - 5

Public, Private, Contract, and Multiclient Warehousing • Multiclient warehousing – Multiclient mixes attributes of

Public, Private, Contract, and Multiclient Warehousing • Multiclient warehousing – Multiclient mixes attributes of contract and public warehousing – Limited number of customers 17 - 5

Design Considerations in Warehousing • General considerations – Quantity and character of goods must

Design Considerations in Warehousing • General considerations – Quantity and character of goods must be known— product profiling – Know the purpose to be served • Storage • Distribution • Cross-docking 18 - 5

Design Considerations in Warehousing • Trade-offs – Product / material – What will be

Design Considerations in Warehousing • Trade-offs – Product / material – What will be moved? – Quantity / volume – How much will be moved? – Route process sequence - Where will be moved to? – Supporting services – Which support will the movements be made with? – Time – When will the movements be made? 19 - 5

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Design Considerations in Warehousing • Trade-offs • Fixed versus variable slot locations for merchandise

Design Considerations in Warehousing • Trade-offs • Fixed versus variable slot locations for merchandise – Fixed slot location – Variable slot location 21 - 5

Design Considerations in Warehousing – Build out (horizontal) versus build up (vertical) – Order-picking

Design Considerations in Warehousing – Build out (horizontal) versus build up (vertical) – Order-picking versus stock-replenishing functions – Two-dock versus single-dock layout – Space devoted to Aisles versus Space Devoted to Storage – Paperless Warehousing • Virtual warehouse versus real warehouse – Retail Storerooms 22 - 5

Warehousing Operations • • Storage and handling equipment Warehouse management systems (Auto ID Data

Warehousing Operations • • Storage and handling equipment Warehouse management systems (Auto ID Data Capture technology: barcode scanners, mobile computers, Wireless LANs, RFID) • Employee safety – Proper handling of waste materials • Dunnage • • 23 - 5 Hazardous materials Warehousing security Sanitation issues Stock controls

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24 - 5

Figure 10 -8: Workplace safety issues 25 - 5

Figure 10 -8: Workplace safety issues 25 - 5

Warehousing Operations • Labor-intensive versus mechanization versus automation • Space devoted to aisles versus

Warehousing Operations • Labor-intensive versus mechanization versus automation • Space devoted to aisles versus space devoted to storage • Picker-to-part versus part-to-picker systems 26 - 5