Warehouse Operations Pallet Rack Replenish Block Stacking (20 lanes) Forward Picking Reserve A-Frame Horizontal Storage Order Bin Shelving and Dispenser Carousel Picking Storage Drawers Order Picking (2 pods) Double-Deep Pallet Racks Packing, Sorting Putaway Putaway & Unitizing Takeaway Conveyor (top level return) Carton Flow Rack Receiving Shipping Cross-docking Packing Area Single-Deep Selective Pallet Racks Unitizing Sortation Conveyor Area Shipping Staging Area Receiving Staging Area (5 lanes) (5 lanes) Secure Storage Area Shipping Dock Doors (5) Receiving Dock Doors (5) 170
Warehouse Management System • WMS interfaces with a corporation’s enterprise resource planning (ERP) and the control software of each MHS ERP Inventory Master File Item Carrier Customer On-Hand In-Transit Master Master Master Item Balance Qty. Locations File File File A 2 1 11,21 B 4 0 12,22 Customer Purchase Customer Supplier Order Order Location Master File On-Hand In-Transit Location Item Balance Qty. ASN WMS ASN 11 A 1 0 12 B 3 0 Location Inventory 21 A 1 1 Master Master 22 B 1 0 File File A A A 21 11 Material Handling Systems B B B 22 B 12 • Advance shipping notice (ASN) is a standard format used for communications 171
Logistics-related Codes Commodity Code Item Code Unit Code Level Category Class Instance Description Grouping of Grouping of identical Unique similar objects objects physical object Function Product Inventory control Object classification tracking Names — Item number, Part number, Serial number, SKU, SKU + Lot number License plate Codes UNSPSC, GTIN, UPC, EPC, GPC ISBN, NDC SSCC UNSPSC: United Nations Standard Products and Services Code GPC: Global Product Catalogue GTIN: Global Trade Item Number (includes UPC, ISBN, and NDC) UPC: Universal Product Code ISBN: International Standard Book Numbering NDC: National Drug Code EPC: Electronic Product Code (globally unique serial number for physical objects identified using RFID tags) SSCC: Serial Shipping Container Code (globally unique serial number for identifying movable units (carton, pallet, trailer, etc.)) 172
Identifying Storage Locations Compartment Building Position Aisle Bay Tier Compartment Location: 1 -AAC - 09 - D - 1 - B B A 2 Wall 1 Position E D Tier (Z) C B A AAA 11 09 07 AAB 05 03 Bay (X) Aisle (Y) 01 Cross Aisle AAC Down Aisle 173
Receiving Reserve Forward Order Sort & Receive Putaway Replenish Ship Storage Pick Pick Pack • Basic steps: 1. Unload material from trailer. 2. Identify supplier with ASN, and associate material with each moveable unit listed in ASN. 3. Assign inventory attributes to movable unit from item master file, possibly including repackaging and assigning new serial number. 4. Inspect material, possibly including holding some or all of the material for testing, and report any variances. 5. Stage units in preparation for putaway. 6. Update item balance in inventory master and assign units to a receiving area in location master. 7. Create receipt confirmation record. 8. Add units to putaway queue 174
Putaway Reserve Forward Order Sort & Putaway Receive Replenish Ship Storage Pick Pick Pack • A putaway algorithm is used in WMS to search for and validate locations where each movable unit in the putaway queue can be stored • Inventory and location attributes used in the algorithm: – Environment (refrigerated, caged area, etc.) – Container type (pallet, case, or piece) – Product processing type (e.g., floor, conveyable, nonconveyable) – Velocity (assign to A, B, C based on throughput of item) – Preferred putaway zone (item should be stored in same zone as related items in order to improve picking efficiency) 175
Replenishment Reserve Forward Order Sort & Receive Putaway Replenish Ship Storage Pick Pick Pack • Replenishment is the process of moving material from reserve storage to a forward picking area so that it is available to fill customer orders efficiently • Other types of in-plant moves include: – Consolidation: combining several partially filled storage locations of an item into a single location – Rewarehousing: moving items to different storage locations to improve handling efficiency Reserve Storage Area 176
Order Picking Reserve Forward Order Sort & Receive Putaway Replenish Ship Storage Pick Pick Pack • Order picking is at the intersection of warehousing and order processing WH Operating Costs Order Processing Receiving 10% Shipping Information Processing Order 20% Preparation Storage Order 15% Transmittal Order Entry Material Handling Warehousing Receiving Putaway Storage Order Picking Shipping Order Status Reporting Order Picking 55% 177
Order Picking Reserve Forward Order Sort & Receive Putaway Replenish Ship Storage Pick Pick Pack Pallet and Case Picking Area Levels of Order Picking Pallet Picking Case Picking Piece Picking Forward Piece Picking Area 178
Order Picking Reserve Forward Order Sort & Receive Putaway Replenish Ship Storage Pick Pick Pack Voice-Directed Piece and Case Picking Pick-to-Light Piece Picking Static Pallet Rack Count Display Increment/ for Reserve Confirm Decrement Storage and Button Buttons Pallet Picking Voice Directed Order Selection Carton Flow Pick 24 Pack 14 Racks for Piece Picking Tote P Pallet Flow Rack a c for Case Picking k 1 0 Pick Takeaway Pick-to-Belt Conveyor Conveyor Carton Flow Rack Picking Cart 179
Order Picking Reserve Forward Order Sort & Receive Putaway Replenish Ship Storage Pick Pick Pack Methods of Order Picking Zone Discrete Pickers Orders A B C D E F G H per per A B C D E F G H A3 7 A3 7 Method Order Picker 6 C4 C4 6 5 5 Discrete Single Single 4 4 3 G1 E5 E5 Zone Multiple Single 3 G1 2 2 1 Batch Single Multiple 1 Picker 2 Picker 1 Picker 1 Zone-Batch Multiple Multiple Zone 1 Zone 2 Batch Zone-Batch A B C D E F G H A B C D E F G H 7 A3 A3 7 C7 F2 6 6 C7 F2 5 D5 D5 5 4 4 3 G1 E8 3 G1 E8 2 2 B4 1 1 B4 Picker 1 Picker 2 Picker 1 Zone 1 Zone 2 180
Sortation and Packing Reserve Forward Order Sort & Receive Putaway Replenish Ship Storage Pick Pick Pack Zone 1 Zone 2 Bin Shelving Case Sortation System Downstream Sortation G Takeaway Conveyor Induction Station Tilt Tray Order Reader Consolidation Wave zone-batch piece Did Not Chutes Read picking, including downstream tilt-tray-based sortation Packing Station Packing Station 181
Shipping Reserve Forward Order Sort & Receive Putaway Replenish Ship Storage Pick Pick Pack • Staging, verifying, and loading orders to be transported – ASN for each order sent to the customer – Customer-specific shipping instructions retrieved from customer master file – Carrier selection is made using the rate schedules contained in the carrier master file Shipping Area 182
Activity Profiling • Item Master Total Lines : total number of lines SKU Length Width Depth Cube Weight for all items in all orders A 5 3 2 30 1.25 B 3 2 4 24 4.75 • Lines per Order : average number of C 8 6 5 180 9.65 D 4 4 3 32 6.35 Customer different items (lines/SKUs) in E 6 4 5 120 8.20 Orders order Order: 1 SKU Qty • A 5 Cube per Order : average total cubic B 3 Total Lines = 11 C 2 volume of all units (pieces) in order D 6 Lines per Order = 11/5 = 2.2 • Flow per Item : total number of S/R Cube per Order = 493.2 Order: 2 SKU Qty operations performed for item A 4 Flow per Lines per Cube C 1 SKU Item Item Movement • Lines per Item ( popularity ): total A 11 3 330 Order: 3 B 5 2 120 number of lines for item in all C 4 3 720 SKU Qty D 18 2 576 A 2 orders E 6 1 720 Order: 4 SKU Qty • Demand Correlation Cube Movement : total unit B 2 Distibution A B C D E demand of item time x cubic SKU Order: 5 A 0.2 0.4 0.2 0.0 SKU Qty B 0.2 0.2 0.0 volume C 1 C 0.4 0.2 D 12 D 0.2 • Demand Correlation : percent of E 6 E orders in which both items appear 183
Pallet Picking Equipment Pallet Flow Rack Block Stacking / Cube Movement Drive-In Rack Double-Deep Push-Back Push-Back Rack Rack Rack Sliding Double-Deep Rack Rack Single-Deep Selective Rack Flow per Item Drive-In Rack Single-Deep Sliding Rack Selective Rack 184
Case Picking Manual Automated Case Picking Equipment Push Back Pallet Flow Cube Movement Flow Rack Rack Delivery Induct Induct Lanes Sortation Conveyor Single-Deep Selective Rack Case Dispensers Lines per Item Unitizing Multi-level Pick Floor-level Pick and Shipping Case Picking Reserve Storage Single-Deep Case Selective Picking Forward Pick Storage Racks Replenish Zone-Batch Pick to Pallet Case Picking Forward Pick Storage Floor- vs. Multi-level Case Case Picking Picking Pick to Pallet 185
Piece Picking Equipment Carton Flow Rack Cube Movement Bin Shelving Horizontal Carousel Carton Flow Storage Vertical Lift Rack Drawers Module A-Frame Lines per Item Vertical Lift Module A-Frame Drawers/Bins Dispenser Pick Cart Carousel 186
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