Warehouse Management [2]

• Warehouse Layout & Design Principles - proiectarea

spațiilor de depozitare pentru stocarea produselor
• Storage and Handling Equipment from small to large
units – echipamente de stocare și manipulare a
produselor
• Physical inventory – inventarierea produselor: how you
improve Inventory Record Accuracy
• Warehouse Management System - sistemele software
de management a depozitelor
• Warehousing Key Performance Indicators (WKPIs) -
indicatori de evaluare a perfomanțelor unui depozit
 9. Distribution Centre Master Plan

The initial decisions of warehousing are related to planning.

• A master plan of the layout, space requirements, and material-handling design
should be developed first and a specific site for the warehouse selected.

• These decisions establish the character of the warehouse, which, in turn

determines the degree of attainable handling efficiency.
Whether the warehouse is a small manual operation or a large automated facility,
the following three principles are relevant to improve warehouse efficiency and
effectiveness:

– General Design Criteria,

– Handling technology, and
– Storage plan.

2
DISTRIBUTION CENTER DESIGN - MADE EASY
 Top 10 Trends in DC Design
• 36- to 40-foot ceiling heights for stacking, racking, and e-commerce
mezzanines.
• Flat and dry concrete slab surfaces for optimal rack layout, void of any moisture
issues.
• Exterior and interior LED lighting systems, coupled with natural light from
clerestory windows (in favor of traditional roof-mounted skylights).
• Extra car parking areas designed to accommodate e-commerce employees.
• Deeper truck courts with 100-percent concrete surfaces and specific trailer
storage drop areas.
• "LEED-light" sustainable design, which includes white roof systems, indigenous
plants material, recaptured rainwater, low-flow toilets, fewer blacktop surfaces,
locally sourced construction materials, and bike racks to encourage alternative
commuting.
• Wider column spacing (56 to 60 feet between support beams) to optimize
staging for rack designs and conveyor systems common in e-commerce
facilities.
• Narrow aisle widths to maximize storage capacity (modern materials handling
equipment complements today's tighter aisle configurations).
• Dock equipment tailored to the occupant's specific needs (edge-of-dock, pit-
style, and mechanical load levelers).
• Cross-dock building design to maximize throughput.
 Warehouse General Design Criteria

• Warehouse design criteria address physical facility

characteristics and product movement.
• Three factors to be considered in the design
process are:
1. the number of stories (etaje) in the facility (depozit),
2. proportion of indoor warehousing versus outside yard
space
3. height utilization, and
4. product flow

6
 Warehouse General Design Criteria
1. Number of stories (etaje) in the facility

• The ideal warehouse design is limited to a single story so that

product does not have to be moved up and down.
• The use of elevators to move product from one floor to the
next requires time and energy.
• The elevator is also often a bottleneck in product flow since
many material handlers are usually competing for a limited
number of elevators.
• While it is not always possible, particularly in central business
districts where land is restricted or expensive, warehouses
should be limited to a single story.

7
 Warehouse General Design Criteria
2. Height utilization

• Regardless of facility size, the design should maximize the

usage of the available cubic space by allowing for the greatest
use of height on each floor.
• Most warehouses have 20- to 30-foot ceilings (aprox 6 – 9 m
inaltimea plafonului) (1 foot = 12 inch; 1 inch = 2.54 cm),
although modern automated and high-rise facilities can
effectively use ceiling heights up to 100 feet. Inaltimea ideala
este 9.5-10.5 m.
• Through the use of racking or other hardware, it should be
possible to store products up to the building's ceiling (plafonul
cladirii).
• Maximum effective warehouse height is limited by the safe
lifting capabilities of material-handling equipment, such as
forklifts.
8
 Warehouse General Design Criteria
3. Product flow

• Warehouse design should also allow for straight product flow

through the facility whether items are stored or not.

• In general, this means that product should be received at one

end of the building, stored in the middle, and then shipped
from the other end.

• Straight-line product flow minimizes congestion and

confusion.

9
 Materials Flow, Goods In, Goods Out
In functie de amplasarea principalelor zone – receptie,
depozitare, expeditie – exista trei variante de flux al marfurilor
intr-un depozit :

circulatia marfurilor in
linie dreapta

circulatia marfurilor in
arc de cerc de 90°

circulatia marfurilor
in arc de cerc de 180°
 Handling technology
Tehnologia de manipulare a produselor
Material Handling is concerned with the movement of
materials for short distances generally within a warehouse, or
between storage areas and transport

• Right Definition
– Handling technology uses the right method to provide the right
amount of the right material at the right place, at the right time, in
the right sequence, in the right position, in the right condition, and
at the right cost.
• This is a relatively broad definition of material handling.

• Handling technology is the second principle focuses on the

effectiveness and efficiency of material-handling.
The elements of this principle concern:
• movement continuity and
• movement scale economies.
 Movement continuity
• Movement continuity means that it is better for a material handler
or piece of handling equipment to make a longer move than to have
a number of handlers make numerous, individual, short segments
of the same move.
• Avoid starts and stops which require extra handling and
additional space. Exchanging the product between handlers or
moving it from one piece of equipment to another wastes time and
increases the potential for damage.

• Thus, as a general rule, fewer longer movements in the warehouse

are preferred.
• Nu se recomanda utilizarea mai multor echipamente de manipulare
pentru deplasarea unui produs in depozit de la locul de stocare la
destinatie-provoaca riscuri de distrugere si pierdere de timp.
• How Many Touches? Ideally, items should only get one touch during
the picking process. Methods that pick directly into shipping
cartons instead of totes eliminates an additional touch at the
packing station as well, or in some cases, the packing process
altogether. În mod ideal, 3-5 atingeri ale produsului, în timp ce
acesta este în depozit (receptie, picking, replanishment,
expeditie/contracolectare).
12
 Movement scale economies

• Movement scale economies imply that all warehouse

activities should handle or move the largest quantities
possible.
• Instead of moving individual cases, warehouse activities
should be designed to move groups of cases such as pallets
or containers.
• This grouping or batching might mean that multiple products
or orders must be moved or selected at the same time.
• While this might increase the complexity of an individual's
activities since multiple products or orders must be
considered, the principle reduces the number of activities
and the resulting cost.
• Eficient este sa manipulezi cantitati mari in schimbul
unitatilor individuale pentru a te folosi de principiile
economiei de scala.
13
 Material Handling Systems Selection
Alegerea echipamentelor de manipulare
a produselor din depozit

The choice of best depends on:

• Throughput – fluxurile de produse
• Physical characteristics of loads – size, weight, etc
• Number of loads to be moved – from receipts,
internal movements for sorting, and then deliveries
• Distance to be moved – from the size of the
warehouse - the physical characteristic of the workplace
• Speed of movement required – how quickly the
warehouse has to respond to demands, etc.
10. Types of Material Moving Equipments

A. Conveyors (conveioare sau benzi transportoare)

B. Hoists & Cranes - mecanisme de ridicat

C. Industrial Trucks (carucioare industriale manuale

sau motorizate)
 A. CONVEYORS
(benzi transportoare)
Used for moving materials continuously over a fixed
path

A.1 TYPICAL CONVEYORS

1. Roller Conveyor
2. Belt Conveyor
3. Wheel Conveyor
4. Chain Conveyor : Flight, Slat, Apron, Bucket
5. Chute Conveyor
A.2 TYPICAL ACCESSORIES

1.Pallets
2.Boxes
3.Tote pans
4.Skids
5.Optical code or bar code reader
 Example
Roller Conveyor - Conveioare cu role
• Rollers attached to side rails supported by a steel frame.
• The type of roller (steel, rubber, and wood) and the spacing of rollers depend on the type
of load to be carried.
• It can be gravity-operated or power-driven.
• Gravity-operated conveyors have a slight downward slope.
• On the power-driven conveyor, some of the rollers are driven by chains or belts to provide
the motion for the material on the conveyor
 B. CRANES
(mecanisme de ridicat)
Equipment for raising, shifting, and lowering
heavy weights by means of a projecting
swinging arm or with the hoisting apparatus
supported on an overhead track

TYPES
1. Hoist
2. Jib crane
3. Bridge crane
4. Gantry crane (example)
5. Tower crane (example)
6. Stacker Crane
Gantry Crane
Macara portal
Basically a bridge crane with the
boom supported at one or both
ends by vertical gantry legs
traveling on rails installed at
ground level (instead of on an
overhead runway)
Tower Crane
Macara pivotanta
A hoist that travels on a horizontal
boom attached at one end to a
vertical post, with the other end
of the boom being supported by a
guy line to the top of the post
 C. INDUSTRIAL TRUCKS
(Carucioare industriale)
Equipment for carrying loads over varying paths.

TYPES
1. Lift trucks (transpalete)
2. Hand trucks (carucioare manuale)
3. Fork trucks (moto-electrostivuitare)
4. Turret trucks (for VNA rack storage) –
furca se roteste stanga-dreapta)
5. Trailer trains (electrocare)
 Hand Carts/Trucks

• A handcart or hand-truck is a wheel-mounted

platform with handles to manually push or pull
the unit

CARUCIOARE PLATFORMA

LIZA
Hand Lift Truck/Pallet Jack Tractor-Trailer Train
Transpalet Electrocare
This is a series of carts pulled by a
This is a hand-operated truck that can
self-propelled tractor. It is mainly
raise loads hydraulically or
used for stop&go operations
mechanically to clear the floor before
carrying loads within 200 to 300
transporting them to the desired
feet
destination
Power-Driven Platform Truck Forklift Truck

A much larger device than the power- A forklift truck is an operator-

driven hand-truck. It carries load and ridden, power-driven truck with
operator. A diesel or gasoline engine forks in front that lift and carry
or an electric motor supplies power heavy loads on skids or pallets

ELECTROSTIVUITOARE si MOTOSTIVUITOARE
 Side-loader Truck
Forks on the side

Turret Truck with forks that can rotate left or right to

place or pick up a load without the truck having to turn
in an aisle
Narrow Aisle Straddle Truck with out-riggers to balance
loaded truck
Narrow Aisle Reach Truck fork truck with
telescoping forks

VNA (Very Narrow Aisle) Pallet Racking

 Automated Guided Vehicle System
An AGV is a computer-controlled vehicle that moves along a predetermined
path and performs certain duties, according to instructions sent by a system
operator located at a station.
 11. Storage Plan

• According to the third principle, a warehouse design should

consider product characteristics, particularly those pertaining
to volume, weight, and storage.
• Product volume is the major concern when defining a
warehouse storage plan.
• High-volume sales or throughput product should be stored in a
location that minimizes the distance it is moved, such as near
primary aisles and in low storage racks.
• Such a location minimizes travel distance and the need for
extended lifting.
• Conversely, low-volume product can be assigned locations that
are distant from primary aisles or higher up in storage racks.

29
 Storage Space Layout
Zonarea spatiului de depozitare al depozitului
A zone classifies a set of locations that share common properties.
A zone enables defining constraints for putaway, retrieval, and picking of SKUs in the
warehouse and can also be applied on a user using task management.
A Location is the physical place where inventory is stored.
Modalitati de zonare / impartire a zonelor in depozit
1.Sursele de provenienta Furnizori/Vanzatori
2.Caracteristici similare Utilizare/Functionalitati Forme, Dimensiuni, Greutate
3.
4.
(security
requirements) 5.
6.
frecventa de livrare 7.
echip. stocare si
manipulare 8.
9. Tipul proprietatii Proprii Consignatie / Custodie
Temperatura: Ambient 15-25C; Refrigerated – produse refrigerate 2-8 C; Frozen – produse
congelate -6 la -40C
Chimice: Regular – produse normale; Flammable – produse usor inflamabile ; Hazardous -
produse periculoase (prezinta riscuri de scurgere a substantelor ex. clorul, bromul, formarea de
aerosoli)
 Storage Space Layout
(Explicarea modalitatilor de zonare a produselor)
 Example: FROZEN ZONE STORAGE

Order-picking
Order-picking in the frozen foods section. Space is very
expensive here because it must be kept below 32F (0C).

Note heavy clothing. Workers must take a 20-minute

break every 45-minutes.
Backup generators for warehouse with Frozen
Zone Storage
 Storage Plan by Products Volume Sales
(Access Frequency)
(Modalitati de zonare a spatiului de stocare pe baza
frecventelor de livrare a produselor)

Product volume is the major concern when defining a warehouse

storage plan.
• High-volume sales (produsele cele mai vandute) or throughput
product should be stored in a location that minimizes the distance it
is moved, such as near primary aisles and in low storage racks (langa
aleia principala si pe primele nivele ale rafturilor aflate la inaltime
mica fata de pardoseala).
Such a location minimizes travel distance and the need for extended
lifting.
• Conversely, low-volume product (produsele cu frecventa mica de
livrare) can be assigned locations that are distant from primary
aisles or higher up in storage racks (la distanta fata de aleia
principala si pe nivelele superioare ale rafturilor).
34
 Zonarea depozitului dupa viteza de rotatie a produselor
Golden, Silver and Bronze Zone

"Golden Zone"
for Fast Movers

Produsele cele mai vandute (fastest) sunt dispuse de-a lungul aleii principale a depozitului,
celelalte ocupand planuri secundare.
Se micsoreaza timpul de deplasare in procesul de colectare a produselor cu livrare frecventa.
 Modalitati de stocare a produselor dupa
caracteristicile fizice

• Similarly, the plan should include a specific strategy for products

dependent on weight and storage characteristics.
• Relatively heavy items should be assigned to locations low to the
ground to minimize the effort and risk of heavy lifting (articolele
grele se depoziteaza la inaltime mica, aproape de pardoseala
depozitului).
• Bulky or low-density products require extensive storage volume,
so open floor space or high-level racks can be used for them
(articolele in vrac sau de densitate mica necesita depozite cu
pardoseala libera sau stelaje de mare inaltime).
• On the other hand, smaller items may require storage shelves or
drawers (articole mici necesita rafturi cu polite sau dulapuri cu
sertare).

The integrated storage plan must consider and address the

specific characteristics of each product.

36
 Example: storage heavier product
Stocarea produselor mai grele

Storage
Heavier ambient product is picked from flow rack.
Produsele mai grele stocate pe un raft gravitational, aproape de pardoseala.
 Stock Location – Conclusion
Modalitati de alocare a spatiilor de stocare a produselor

• Group Functionally Related Items Together – Order

Picking Easier
• Group Fast Moving Items Together – Work of Moving In
and Out of Storage Reduced
• Group Physically Similar Items Together – For Items that
Require Particular Storage Facilities and Handling
Equipment
• Locate Working Stock from Picking Zone(stocul din care se
colecteaza liniile de comanda) and Reserve Stock from Reserve
Zone (stocul de rezerva ) Separately – Order Picking in
Compact Area
38
 12. Types of Layouts

• Fixed-position layout
• Process-oriented layout
• Office layout
• Retail layout
• Warehouse layout
• Product-oriented layout
 Types of layouts
-Retail /Service Layout -
Grid Design
Grocery Store
Bread Meat

Produce
Milk

Frozen Foods
Check-
Office Carts
out

© 2001 by Prentice Hall, Inc., Upper

9-40
Saddle River, N.J. 07458
 Retail Layouts - Some Rules of Thumb
(Proiectarea spatiului unui retailer - reguli de baza)
 Locate high-draw items around the periphery of the store
(exemplu produse de panificatie, mezeluri, carne, apa, fructe, lactate, etc)
 Use prominent locations such as the first or last aisle for high-
impulse and high margin items
 Remove crossover aisles that allow customers the opportunity to
move between aisles
 Distribute what are known in the trade as “power items” (items
that may dominate a shopping trip) to both sides of an aisle, and
disperse them to increase the viewing of other items (produsele de
mare interes pentru clienti sunt dispersate de o parte si de alta a aleii pentru a
creste rata de expunere si a altor produse)
 Use end aisle locations because they have a very high exposure
rate (utilizati locatiile din capatul aleilor pentru expunerea maxima a unor
produse)
 Warehouse Layout
Activities that Influence
Warehouse Operations:
o No. of Lines per Order
o Quantities per Order Line
o Location of Product to be Picked or Put-
away
o Vertical Location of Product in Storage
Racks / Stacks
o Physical Weight, Cube & Dimensions of
the Product
o Capacity of Material Handling
Equipment for Given Product
o Staging / Non-Staging Requirements of Basic needs:
Order Receiving
o Over-Packing requirements of Small Basic storage area (rezerve
Pkges. / Picked Items and picking zone)
o Accuracy of Inventory Records : Order selection/sortation
Location & Qty. of Item to be Picked or Put- and preparation for shipping
away Shipping
 How Do You Design
a Warehouse Layout?

First step of any

warehouse project is to
understand the
Warehouse Activity
Profiling (Data mining)
To Slot or not to Slot? That is the
question.

Slotting is the shorthand term for

the process of
allocating product, (SKU’s),
to locations in the
Warehouse according to business
rules and
product characteristics.
 13. What is Warehouse Activity Profiling?

Warehouse Activity Profiling is the analysis of historical sales

transaction data for the purposes of projecting warehouse
activity and determining storage mode, physical layout, work
flow processes, and labor and equipment requirements.

Types of Activity Profiles

There are four main categories of warehouse profiling:

1. customer orders
2. item activity
3. purchase orders
4. inventory levels
 Warehousing Activity Profile
Warehouse activity profile includes two main categories of
profiles:
•A customer order profile - it is an outbound activity and refers
to how the customers are ordering the products ( ordering
patterns of the customer orders).
Has components such as order mix distributions, lines per order
distribution, and lines and cube (greutate, cantitate, m3, etc)
per order distribution.

•An item activity profile provides support in making decision for

storage and slotting (pozitionare) options of items.
Manage information related to the in-house behavior of items in
the warehouse i.e. dynamics (frequency - how often items are
ordered or picked, cube movement - how much is ordered etc.)
of the stock keeping units.
 13.1. Customer Order Profiles
• Customer Order Profiles is defined by:
– Order Lines Distribution analiza repartitiei liniilor de comenzi
– Order Increment Distribution (incrementarea comenzilor se face in full unit (paleti
sau bax-uri):
– Order Mix Distribution – analiza repartitiei comenzilor pe grupe de produse sau
unitati de livrare-ambalare
• A mix order could be: Family Mix, Full/Partial Pallet or Full/broken case Mix
Distribution
(o comanda mixta este un mix de grupe de produse sau un mix de unitati de
livrare)
In the omni-channel supply chain, a typical
wholesale distributor warehouse will have at least
two to three different order types or profiles.
The left table is from an example of customer who
sells through their own web store, to
miscellaneous distributors and through large big
box retail centers.

Knowing this information will help you define

optimal pick workflows.
Family – grupe de produse; Full/Partial Pallet – paleti/cutii; Full/broken case – cutii/articole individuale
 13.2. Order Analysis

Knowing this information will help you

define optimal pick workflows that can
significantly reduce average travel time per
pick.
 Customer order profiles - Order Lines Distribution
Lines per order distribution Cube (metres) per order distribution

analiza repartitiei liniilor de comenzi

Distributia liniilor din comenzile clientilor

Greutatea medie a unei linii din comenzi

Nr. linii pe comenzi
Lines and cube per order distribution

80% din comenzi

au cel mult 5 linii

Ponderea liniilor din comenzi pe unitati de livrare/ambalare

Interpretare: 80% din comenzi au cel mult 5 linii de comanda

(50+15+15). Se poate implementa metoda de comisionare
wave/batch picking zone dar si cross-docking cel putin pentru
comenzile backorders cu 1 singura linie.
 Customer Order Profiles
Order Mix Distribution
Distributia comenzilor pe grupe de produse Distributia comenzilor pe unitati de ambalare ( cutii si produse
individuale)

Produse individuale Cutii Cutii si produse individuale

Interpretarea graficelor:
• Family mix distribution : din graficul distributia comenzilor pe grupe de produse, rezulta ca 75%
(35+25+15) din comenzile clientilor reprezinta produse din aceeleasi familii (grupe).
Ponderea mare de 75% sugereaza zonarea spatiului de comisionare (forward picking) a depozitului pe
cele 3 categorii de produse pentru reducerea timpilor de deplasare. Se impune metoda de comisionare
zone picking: Scan, Pick and Pass

• Full/broken case mix distribution: se impune zonarea spatiului de comisionare in 2 zone:

– full case picking pentru comisionarea bax-urilor
– broken case sau pieces picking pentru comisionarea articolelelor unitare
 Item Activity Profile

Primarily item activity profile is used to allocate

each item in the warehouse:

• Storage mode
• Space to allocate for each item category.
• Where the items are to be stored.

Analiza profilului de activitate a unui articol este utilizata

pentru alocarea corecta a acestuia in spatiul de depozitare.
 Item activity profile
The item activity profile includes the following activity distributions:
• Item-popularity distribution - a minority of the items in a warehouse generate
a majority of the picking activity. Use ABC curve or a Pareto Distribution. Se
bazeaza pe numarul liniilor din comanda nu pe cantitatea comandata.
• Cube-movement/volume distribution - se bazeaza pe analiza distributiei
volumelor articolelor comandate (cantitati, greutate, m3, etc)
• Popularity-volume distribution (ia in calcul atat frecventa produsului in liniile
de comenzi cat si volumele acestora (e.g. cube movement m3, weight kg, cant
buc).
• The demand correlation distribution- the demand correlation distribution is
created by ranking items based on their frequency of appearing together on
orders.

Recomandare :
Utilizati tehnicile ABC de clasificare a articolelor folosind Popularity-Volume
distribution adica utilizarea simultana a informatiile referitoare la numarul total
al liniilor comandate, cantitatile de livrat si volumul total al produselor
comandate (m3 sau greutate).

De exemplu, un produs poate fi solicitat cu o frecventa mai mica (numar mic de

linii) dar in cantitati foarte mari. Ne aflam in situatia unor comenzi de baxuri sau
paleti care impun plasarea produsului pe statii de colectare de tip baxuri/paleti si
alocarea unor echipamente de stocare/manipulare corespunzatoare.
 Item-popularity distribution
Teoria popularitatii
Se mai numeste ABC sau Pareto Distribution si arata cat de frecvent apar produsele in liniile
de comenzi ale clientilor, respectiv in liniile notelor de colectare transmise catre depozit.

Amplasarea produselor in depozit se face in functie de viteza de rotatie a acestora.

What we discovered in Pareto Distribution where 20% of the items (A class) were picked for
80% of the orders.
20% din produsele colectate au fost prezente in 80% din totalul liniilor de comenzi ale
clientilor.
Consequently, A class items was assigned to the most accessible locations (see Golden zone
slide).
 Pareto Effect and ABC Analysis
Class-based storage – activity level

Zones based on pick frequencies to minimize travel time: from A (high volum & frequency) to C
(Slow Movers)- 80/20 rule applies.
In zona A, aproape de aleia principala, se depoziteaza produsele care au frecventa mare de
livrare, zona B produsele cu frecventa medie de vanzare, zona C produsele cu frecventa
scazuta de livrare.
3D product placement using Pareto law and ABC
Analysis

Warehouse Slotting (alocarea spatiilor de

stocare) using methods of warehouse activity
profile can reduce labour costs by up to 20%!

Location of ABC products (Source DC Expert 3 D drawing package)

 Demand Correlation Distribution
Distributia
Teoria complementaritatii si a similaritatii
articolelor
• Identify relationship (affinity) of demand between
individual items or families.
• frecventa aparitiei impreuna a articolelor in
comenzi determina gradul de corelare al acestora.
– Often based on same style or size
– Sometime complementary items such as shoes & purse
(pantofi si poseta) sau ulei si filtru de masina, etc
• This data can be used when slotting (alocarea
spatiilor de stocare) the warehouse to minimize
movement when filling orders (colectarea
comenzilor).
 Demand Correlation Distribution
Analiza produselor care se comanda impreuna
Item Number Item Number Pair Frequency
189-2-4 189-2-1 58
493-2-1 493-2-8 45
007-3-3 007-3-2 36
119-2-1 119-2-7 30
999-1-8 999-1-6 22
207-4-2 207-4-4 15
662-1-9 662-1-1 12
339-7-4 879-2-8 9
112-3-8 112-3-4 6

Articolele care apar frecvent impreuna in comenzi vor fi pozitionate in locatii

apropiate pentru a minimiza timpul de deplasare la colectarea acestora.
Frecventa cu care anumite produse se vand impreuna.
Informatiile necesare in procesul de proiectare a resurselor
unui depozit
(1)
Informatiile necesare in procesul de
proiectare a resurselor unui depozit
(2)
 Storage Equipment

Simple Pallet Rack Shelving or Static Rack Gravity Flow Rack for small units
Rafturi metalice Rafturi metalice Rafturi metalice
pentru paleti cu polite gravitationale
(stelaje)
 Small Unit Storage Equipment
• Bin / Steel Shelving (Rafturi)
• Modular Storage Drawers in Cabinets
• Carton Flow Racks
• Mobile Storage – manual or computer-controlled systems such as
mini-load AS/RS Systems which moves product in cartons, trays or
totes.
• All the above equipment can also be arranged in mezzanines to get a
better exploitation of the building cube.
Example:
Bin Shelving (Rafturi)
 Small Unit Storage Equipment in Images
Modular Storage Pieces Flow Racks Carton Flow Racks
Drawers in Cabinets

Mobile Storage
 Pallet Storage Modes
• Floor Storage (Block Stacking)

• Rack Storage
– Drive-in Racks
– Dynamic Flow Through Storage Systems
– Push Back Racks
– Selective Rack Double Deep
– Selective Racks
– Very Narrow Aisle
• Unit-Load AS/RS Systems are larger systems that typically store and
retrieve pallet loads. AS/RS (automated storage and retrieval
systems) are computer-controlled systems that store and retrieve
product in distribution centers, warehouses and manufacturing
facilities.
 Floor Storage (Block Stacking)
Stocarea pe pardoseala depozitului

Lane Height

Stocarea marfii pe
pardoseala
Lane Depth depozitului, pe
(3-deep) europaleți

Lanes

An efficient storage mode when

• there are multiple pallets per SKU;
• inventory is turned in large increments, I.e., several loads of the same SKU are received or
withdrawn at one time.

Main problems:
• Loss of space due to “honeycombing”
• not effective utilization of the vertical dimension of the facility
 Floor Storage or
Block Stacking
For pallet storage
(Stocarea marfii se face
pe pardoseala depozitului, pe europeleți, fără a
fi necesare rafturi)

Aisle

Ex.: Stocarea sacilor de cafea pe paleti stivuiti pe pardoseală

 Rack Storage Option
for pallet storage

• Drive-in Racks
• Dynamic Flow Through Storage Systems
• Push Back Racks
• Selective Rack Double Deep
• Selective Racks
• Very Narrow Aisle
 Rack Storage Option
Drive-in Racks

Sistemul Drive-in elimina nevoia de culoare pentru incarcare si descarcare.

Motostivuitorul pozitioneaza paletii pe barele orizontale ale stelajelor.
Beneficii:
• Depozitare de inalta densitate - maximising cubic space
• Mai multi paleti depozitati pe metru cub decat orice alt sistem de depozitare
• Rotatie scazuta a stocurilor - potrivit pentru bunurile sezoniere
• Ideal pentru aplicatii in mediu rece si congelat
• Accesibil prin sistemul primul intrat - ultimul iesit
• Potrivit pentru bunuri de acelasi tip, in vrac
 Rack Storage Option
Push Back Racks

Stelaje pentru paleti pe conveioare inclinate cu roti/ role Depozitare si preluare dintr-o
singura parte
Beneficii:
• Depozitare de inalta densitate - maximising cubic space (crestere a capacitatii de depozitare
cu pana la 75%)
• Mai multi paleti depozitati pe metru cub decat sistemele traditionale
• Rotatie scazuta a stocurilor - potrivit pentru bunurile sezoniere
• Ideal pentru aplicatii in mediu rece si congelat
• Accesibil prin sistemul primul intrat - ultimul iesit (FILO)
• Potrivit pentru bunuri de acelasi tip, in vrac
 Rack Storage
Selective Rack - Double Deep

Description: Selective rack which is 2 pallet loads

deep at each level of storage
Features:
– Each level can be a different sku
– For small lot sizes
– Require special fork trucks with attachment that
extends into rack
– Require high operator skill
– 1 times the capital cost
Considered for:
– Lot sizes which are 8 pallets or less
 Rack Storage
Selective Rack Double Deep

2 deep
5 high
storage
 Rack Storage
Selective Racks
Description: Provide storage for one pallet load per
location.
Features:
– Each pallet load can be accessed without handling other
loads.
– For very small lot size
– Typically positioned back to back
– Provides lowest storage density
– 1 times capital cost

Considered for:
– 4 pallets per lot or less
Selective Rack Example

1 deep
5 high
storage
 Rack Storage
Very Narrow Aisle
Description: Single deep selective rack with narrow aisle
Features:
– Typical aisle width of 2m (versus 4 m for conventional
rack)
– Requires specialized fork truck
– Provides for high density storage
– Up to 15 meters in height
– Driver may ride up with the load (operatorul in acelasi
spatiu cu incarcatura)
– Vehicle is usually wire guided.
Considered for:
– High storage density with small lot size (densitate
mare
de stocare cu o dimensiune mică a lotului de produs)
 Rack Storage
VNA:
Electrostivuitoare cu
Very Narrow Aisle
operator in cabina,
manipularea prin
lateral a paletilor si
order picking la nivel
inalt in culoare
foarte inguste de
operare – maxim 2m
latime, capacitate
nominala de
incarcare maximum
1.5 tone, in culoare
cu ghidaj prin
1 deep
telecomanda sau
5 high
sine.
storage

Very Narrow
Aisle with Turret Furca VNA de preluare paleti se roteste
Truck inside of aisle stanga-dreapta
 Automated Storage & Retrieval System
(ASRS or AS/RS)
Systems for automatically storing and retrieving loads from defined storage
locations under computer control.
AS/RS - automated storage and retrieval system supported by a warehouse
execution system (WES) permite stocarea automata a articolelor / baxurilor /
paletilor si colectarea automata a acestora.

AS/RS solutions operate on a “goods to person” principle.

BENEFITS:
High Cube utilization reclaiming up to 75% of floor space by using
overhead space and increasing storage density
Materials are presented to the picker reducing risk of operator injuries,
including repetitive motion syndrome & eliminating up to 2/3 of an
operator's wasted walk and search time
Materials are stored and protected securely inside the storage units
Decreased inventory levels possible through centralized storage & control
2005 version
 Automated Storage & Retrieval System
(ASRS or AS/RS)
The essential components of AS/RS:
An AS/RS comprises five essential components:

1. A rack system to store product

2. A crane/SRM (storage retrieval machine) that runs on a floor
rail
3. A load-handling device/shuttle to move product from the
crane to the rack location
4. A conveyor system to move goods to and from the AS/RS and
dock areas
5. Warehouse management and material flow control
software (WMS, WCS) to control, track and optimize all
product movements 2005 version
 ASRS – Vertical Carousel
Linked shelves rotate vertically on
oval track. Bins hold “small”
materials

Up to 35 fpm
10,000 to 25,000 pound
capacity
10 to 35 feet tall
Option: Pick to Light
Environmental control (clean,
refrigerated or frozen)

Facility Requirements
– Power (3Ø & 1Ø)
– Space
 ASRS - Horizontal Carousel
Linked bins rotate
horizontally on oval track -
Shelves hold “small to
medium” size materials.

Up to 90 fpm
300 to 2,500 pound bin
capacity
6-12 foot high
Option: Pick to Light
Option: Auto Extractors

Facility Requirements
– Power (3Ø & 1Ø)
– Space
 ASRS – Crane In Aisle
S/R Machine travels
horizontally on floor rail w/ a
vertical moving extractor to
store & retrieve payloads
from rack structure on both
sides of aisle.

200 to 500 fpm

50 to 10,000 pound loads
10 to 100 foot high
Environmental control
(clean, refrigerated or frozen)

Facility Requirements
– Power (3Ø & 1Ø)
– Space (higher the better)
– Floor loading on grade
 ASRS – Box Picker

Fast controlled-access storage

(small crane in aisle) for meds
& supplies in bins. Secure or
limited access to 1 bin at a
time.

Bins 14”L x 7”W x 3.3” H

687 bins in 75 sq ft.
Store/Pick to 200 / hr.
High capacity drawers
Interface to IT system for
access & inventory control

Facility Requirements
– Power (3Ø)
– Location space
Case Study:
Buffalo Trace Distillery is an
advanced distillery and national
landmark, producing, storing and
shipping a variety of alcohol,
including top-shelf bourbon and
whiskey. Buffalo Trace selected
Westfalia Technologies, Inc. as
their partner in the construction
of a new 83,000 square-foot
facility combining 5 buildings
containing finished goods into a
single facility and featuring a
high-density AS/RS with three
storage and retrieval machines.
AS/RS - automated storage and
retrieval system supported by a
warehouse execution
system (WES). See inbound
logistics, april 2016.
 Unit Load influence Warehouse Design
• Interdependency between the selection of
– Unit load - size
– Unit load container – size and type
– Pallet - size and type and loading method
– Storage Area – type of racks, storage method, height,
length
– Material Moving Equipments: trailers, forklifts, trucks –
type, size, capacity
Unit load is the unit to be moved or handled at one time.
Unit load – unitatea de incarcatura reprezinta un container sau
palet care contine un singur produs sau mai multe produse. Se
formeaza pentru a fi incarcata in mijloacele de transport pentru
livrare.
 Unit Load Principle and Design
• Unit load is the unit to be moved or handled at one time.

• Advantage: handle multiple items -- reduce the number of trips

• Unit loads can be contained in totes (cutii), cartons, pallets, pallet

boxes, etc.

• Enclosure and stabilization is provided by strapping, shrink-

wrapping, and stretch-wrapping

• Unit load specification is an integral part of material handling and

storage system design

– Small Load vs Large Load

Example of Unit Load
 Integrity of Unit Load
Integritatea unitatii de incarcatura
• The unit load may be different
along the supply chain, upstream
in the SC, flow is in larger units,
like pallets, downstream in the
SC, product is successively
broken down into smaller units
(see attached image).
• A stock keeping unit, or sku, is
the smallest physical unit of
product that is tracked by the
organization.

• Integrity can be maintained in

various ways:
– Boxes - baxuri
– Cartons - cutii
– Pallets - paleti
– Strapping, shrink wrapping – folii
pentru paletizare, benzi
securizare paleti, benzi adezive
pentru inchidere colete, cutii
 Moving the Unit Load

• Typically the unit loads are

– Covered in containers
– Carried and stored as containers lying on pallets
– (typically) Carried in trailers

• While planning, you should consider the

dimensional relations between
– Containers
– Pallets
– Trailers
– Storage racks/spaces
 Containers

• Returnability/Reusability – ……Returnabil/Reutilizabil
– Cartons are not suitable for this

• Stackability – …… Stivuire
– Lids or tabs provide this feature

• Nestability – ……Stivuirea interioara cand sunt goale

A container that can stack within another container
when empty.
Lungime 1,200 mm latime 800 mm inaltime 153 mm
deschiderea ferestrelor din talpa 100 mm *
Dimensiuni in concordanta cu ISO,AFNOR, DIN, CEN • Common Pallet Sizes
(W*L cm)
– 80 x 100
– 80 x 120
(europalet
standard EUR)
– 120 x 100
(europalet atipic
EUR2)
– 120 x 120
– 105 x 105
– 85 x 120
EUROPALET STANDARD
The Use of Containers & Pallets
The Use of Containers & Pallets
 14. Inventory Record Accuracy

Counting Frequency

• ABC Method

• Zone Method

• Location Audit Method

 Cycle Counting Example

A distribution company wishes to count A

items 4 times per year, B items 2 times per
year, and C items 1 time per year. There are
500 A items, 3,500 B items, and 11,000 C
items.

A Plan of cycle counting procedure is shown

in the next slide.
93
 Cycle Counting Plan
Example

Number Count Number of Per Counts per

Class of Items Frequency Counts Cent Day

A 500 4 2,000 10% 8

B 3,500 2 7,000 35% 28

C 11,000 1 11,000 55% 44

Totals 15,000 20,000 100% 80

Note: Daily Count = 20,000 / 250 = 80

94
 15. Warehouse Management System (WMS)
WMS is the software system that enables
real-time, paperless control of warehouse
operations.
Requires a “Host” system to interface to
– ERP
– OMS (Order Management System)
– Purchase Order data, Sales Order data,
Item Master data
Features
• Inbound (receiving) and outbound
(shipping) operations management
• order management
• yard management (dock door scheduling
functionality most helpful in coordinating
the activities of both the transportation
and warehousing departments)
• labor or workforce management - Labor
Achievable WMS goals include: is one of the largest cost drivers in the
• greater customer satisfaction through warehouse,
• warehouse optimization (space, labor, WS
shorter cycle times internal operations) using slotting, Task
• 100% accurate deliveries Management (easily move people to
• better utilization of warehouse resources urgency tasks)
• inventory reduction • Others – value-added services,
social media type functionality for private
• increased productivity. online chat, etc
WMS capabilities span: WMS at a glance
a) receiving,
b) put-away,
c) stock locating,
d) inventory
management,
e) cycle counting,
f) task interleaving,
g) wave planning, Automated
h) order allocation, materials-handling
i) order picking, equipment
interfaces
j) replenishment,
k) packing,
l) shipping,
m)labor management
n) automated materials-
handling equipment
interfaces and
o) WMS may also extend
into areas such as
Determina locul de
slotting, value added poziționare al remorcii
services, kitting, pentru incarcare
parcel manifesting,
Yard Management System: In some suppliers’ systems, YMS belongs to WMS, in
and integration to
other to TMS. Implement an alert system between WMS and TMS using common
radio frequency (RF)
master data and users interface. Example: TMS sends an alert when a truck is
devices or voice delayed and will not arrive at a dock at the expected time with impact on customer
picking technologies. orders (change or are cancelled..), work shift, etc
 ERP WMS advantages vs BOB WMS
• Avoidance of redundant functionality issues
• Eliminate the interfacing difficulties being an integral part of the ERP system
• Real time data synchronization (inventories records are updated instantly ,
alerts and communications flow automatically across the supply chain from
and to warehouse, etc). In BOB WMS records and activities are replicated
causing processing and visibility delays.
• Decrease costs of WMS implementation (separate applications can double
many of your costs of licensing , maintenance and support )
• BI solution suites for entire ERP (Vendor WMS solution required to purchase a
separate solution for BI (business intelligence)
• Implementation time and costs can be significantly less with embedded WMS
modules because the integration points with the ERP system are already
established and the two systems are designed from the start to work together.
• Training on the system may or may not be priced separately from
implementation;
• Enhancement-bearing service packs or upgrades to an embedded WMS are
delivered as part of the systematic upgrades to the ERP software.

BOB - abreviation of Best-of-Breed

 Company warehouse structure
Physical Sytem Locator

• Memory systems - are solely dependent on human recall (memoria

personalului), someone saying, “I think it’s over there-cred ca sunt
acolo.”

• FIXED LOCATION SYSTEMS- every item has assigned the same location.
A location is empty because no other item may be placed.
• ZONING SYSTEMS – it’s a variation of pure fixed locator systems that
place similar item’s characteristics as size, variety, flammability, toxicity,
weight, lot control, private labeling, and so on in “zones.” Ex: Frozen
zone, Dry zone, Cooler zone, etc.
• RANDOM LOCATOR SYSTEMS - no item has a fixed home and may be
placed wherever there is space, the difference from a memory system is
that each SKU has a location identifier noted in a computer database
which control of where all items are at any given time.
• COMBINATION SYSTEMS – combines best features of fixed and random
locator systems
 Company warehouse structure
Geocodarea
• A company’s warehouse physical structure contains the following entities:
• Sites. A site is a geographical location. A site includes one or several warehouses.
• Warehouses. A warehouse is a commercial building for storage of goods.
• Zone. Each warehouse is divided into multiple zones. Warehouse floor is divided into work
areas and each work area is reffered as a zone. Warehouse processes and systems are
designed around this zone concept, a logical division of warehouse.
Zones are defined by item characteristics
–Velocity (frecventa de colectare-livrare mare, medie, mica)
–Size
–Weather resistance, flammability, toxicity, others
• Aisles (Alei). An aisle is a space for walking with rows of seats on either side or with rows of
seats on one side and a wall on the other. In warehouses, rather than seats they have a rack
to either side.
• Racks (Rafturi metalice sau stelaje). A rack is a material handling storage aid system
designed to store pallets, cases or individual products.
Codificarea randurilor de rafturi: randurile de rafturi din partea dreapta cu numere impare,
randurile de rafturi din partea stanga cu numere pare.
• Shelves (polite). The rack system composed of shelves.
• Bins (celule). A bin is a position on a shelf. Codificarea celulelor se face de la stanga la
dreapta.

OBS.: Se pot utiliza pentru codificare cifre sau litere sau combinatii intre acestea.
 SAP – Warehouse structure
Types of Organization Units

Each warehouse consists of a warehouse number which is at the

highest level in a warehouse management system.

Types of storage where products are physically stored in a

warehouse such as open storage, goods issue (expeditie) and
goods receipt (receptie), racks

It’s a part of storage type and represents a group of

Activity Areas:
Storage bins are further
categorized in this activity
area.
It includes activities like
picking, put away or a
physical inventory. As per the
activity, you can assign the
same storage bin to multiple
activity areas.
bins with same characteristics. Example of storage
sections are fast moving or slow moving items, etc.
The Storage bins represent the lowest physical
level location of storage space where the
products are stored in Warehouse.
The quantity of goods in the storage
bin is represented by Quant.
 Geocodarea unui spatiu din depozit

Exemplu:
Produsul A se afla
pe zona 01, aleea
02, pe raftul din
dreapta 01, polița
03, celula 02.
What are the benefits of integrated warehousing
and transportation to the top and bottom line?
The benefits at top line are:
• improved because of the customer satisfaction provided
through real-time flexibility of handling order changes and
achieving optimal performance metrics such as on-time
delivery, perfect order, order fill rates, increased sales and
on-shelf availability.

The benefits at bottom-line are:

• lower freight costs,
• lower labor costs
• improved throughput (fluxurile interne de marfa)
• better utilization of capital equipment (such as fleet assets
and warehouse forklifts)
• lower overtime costs.
 eCommerce Fulfillment Services
Onorarea comenzilor in sistemele de comert electronic

The growth of online shopping has challenged companies to create efficient eCommerce fulfillment
services. In most cases, have to manage B2B and B2C fulfillment warehousing from the same facility to
control inventory and operations costs.
Order receiving
– Take data in any format and receive it into your warehouse management system. Consumers e-
commerce orders ofen consist of no more than three items.
Inventory management
– Your inventory is managed to a 99.9+ percent accuracy level, aided by a full-featured WMS
system. Items scanned at receipt are immediately visible via web portal. Inventory is managed
using FIFO, LIFO or FEFO processes.
Pick and Pack
– Efficiency in eCommerce fulfillment is critical to profitable online sales. Design efficient pick
processes to minimize time and labor. Orders are picked and automatically verified for accuracy
during scan in at the packing station. Adesea necesita spatiu separat in DC pentru colectarea
comenzilor on-line sau DC separat in cazul volumelor mari ale cererilor on-line. Producatorii
care vand on-line lucreaza cu parteneri specializati pentru onorarea comenzilor online.
Shipping eCommerce fulfillment orders
– Fulfillment warehousing is just part of an overall eCommerce fulfillment service. Manage
outbound shipments using your parcel account or our own. We are integrated with UPS, FedEx
and all major 3rd party shipping systems for eCommerce fulfillment. Orders cutoffs are as late
as 5 pm. Comenzile primite pana la pranz sunt livrate in aceeasi zi.
Tracking
– Check order status, delivery status and inventory online 24/7 via easy-to-use web portal. Can’t
get the information you want online? No problem. You will be assigned a dedicated account
manager within our customer service group to answer your questions.
16. WAREHOUSE PERFORMANCE EVALUATION
Warehouse logistics is a complex environment. Many factors have impact in your
warehouse efficiency and quality.
For example:
Purchase department:
• How do they buy? Small quantities or big quantities?
• How do the suppliers pack the goods?
• How many suppliers do you have?
Sales department:
• How many order types do you handle?
• How many orderliness per order?
• How long can they send each order type?
• Is there any regulations how many orderliness can they send close to truck
departure?
And this is just a fraction of what you need to look at.
To use a benchmark of KPI as a measure of whether your warehouse is good or bad
is pretty useless.
 Warehouse Key Performance Measures
“Before implementing improvements, first ensure you are
measuring your current performance”
1. Financial (cost per unit); e.g.,
– Cost per Order: (Total Whse Cost)/(Total Orders Shipped)
2. WAREHOUSE Productivity (units per man-hour); e.g.,
– Lines or Orders per Hour: (Lines or Orders Picked & Packed)/(Total Whse Labor
Hours)
3. Warehouse Cycle Time Performance – response time(hours per unit); e.g.,
• Dock-to-Stock Time - the elapsed time from when a receipt arrives on the warehouse premises
until it is ready for picking or shipping : (Total Receiving + Putaway Hours)/(Total Receipts
Hours)
• Order Cycle Time - the elapsed time from when an order is released to the warehouse floor
until it is picked, packed, and ready for shipping : (Actual Ship Date) – (Customer Order Date)
Whse- abreviation of Warehouse

See WAREHOUSE PROFESSIONALS … by Newcastle – ind logistica

Warehouse Key Performance Measures (Cont.)
4. Warehouse space Utilization (avg. units/capacity); e.g.,
– Storage Utilization: (Avg. Occupied Space)/(Available Storage Space)
– Ex: The number of cases or pounds stored per cubic feet.
5. Warehouse Quality Performance(%); e.g.,
– Putaway accuracy - the percent of items put away correctly
– Inventory accuracy - the percent of warehouse locations without
inventory discrepancies: (Actual Qty per SKU/System reported
quantity)-ideally you are dealing with a looking to measure closer to
99.9% - 99.999% as a standard. By exmple, in a month where you ship
100,000 pieces, you would have no more than 100 incorrect picks.
– Picking Line accuracy - the percent of order lines picked without errors : (Error-Free
Orders Lines)/(Total Orders Lines Shipped)- se mai utilizeaza si Picking Order accuracy
– Shipping accuracy - the percent of order lines shipped without errors
– On-Time Delivery: (Orders On-Time)/(Total Orders Shipped)
– Loss: (Total Damage + Claims Loss)/(Total Sales)
 Warehouse Benchmarking
Compare a warehouse with similar warehouses
Ex.: Calculate Pick rates (Lines or Orders per Hour) for similar warehouses

Fit a regression line for size

versus average picks per
person-hour.
Generally, larger warehouses
are less efficient
Larger warehouses have
more travel time
Are smaller warehouses
more efficient?
• Pure size hurts efficiency
• Size requires process Regression Line
changes
Examples:
• Changed the smallest
quantity handled, from
eaches to cartons, etc.
• Utilize cross-docking
to eliminate double
handling.
Warehouse floor