Storage and Handling System and Decisions

Storage and inventory control processes include activities related to holding material and
the processes of counting and transacting it as it moves through a fulfilment or distribution centre.
The layout of a facility supporting an adjoining manufacturing operation will have different
requirements than one supporting distribution to stores or consumers. Some operations place
emphasis on replenishment, others on picking and order fulfilment. Regardless, best-practice
companies have designed storage systems to meet the needs of the current and planned mix of
storage types. This includes optimization of storage locations and layouts to fit the product without
the need to restack or re-palletize once received. The warehouse management system (WMS) will
track storage location profiles and properly assign items to the optimal storage location. As a result,
top performers have excellent cube-fill rates.

Warehousing incorporates many different aspects of logistics operations. Due to the

interaction, warehousing does not fit the neat classification schemes used when discussing order
management, inventory, or transportation. A warehouse is typically viewed as a place to hold or
store inventory. However, in contemporary logistical systems, warehouse functionality can be
more properly viewed as inventory mixing Storage has always been an important aspect of
economic development. In the preindustrial era, storage was performed by individual households
forced to function as self-sufficient economic units. Consumers performed warehousing and
accepted the attendant risks.

As transportation capability developed, it became possible to engage in the specialization. Product

storage shifted from households to retailers, wholesalers, and manufacturers. Warehouses stored
inventory in the logistics pipeline, serving to coordinate product supply and consumer demand.'
Because the value of strategic storage was not well understood, warehouses were often considered
"necessary evils" that added cost to the distribution process.

There is the number of reasons for proper storage systems, of which one with importance are:

i. Transportation-Production Cost Reduction,

ii. Coordination of Supply and Demand,
iii. Production Needs,
iv. Marketing Considerations
Storage Alternatives
• Direct shipping (no warehousing).
• Private warehousing.
o Better control, Special needs, Future use of space.
o High fixed cost, Constant size and location.
• Public warehousing.
o Inexpensive for small amounts, Can vary size and location, Can provide additional
services (customs,etc.).
o Less control.
• Combination of public and private.
• Storage in transit.

Material Handling
Manual material handling ranges from movement of raw material, work in progress,
finished goods, rejected, scraps, packing material, etc. These materials are of different shape and
sizes as well as weight. Material handling is a systematic and scientific method of moving, packing
and storing of material in appropriate and suitable location. The main objectives of material
handling are as follows:

• It should be able to determine the appropriate distance to be covered.

• Facilitate the reduction in material damage to improve quality.
• Reducing overall manufacturing time by designing efficient material movement
• Improve material flow control
• Creation and encouragement of safe and hazard-free work conditions
• Improve productivity and efficiency
• Better utilization of time and equipment

Handling systems can be classified as mechanized, semiautomated, automated, and information-

directed. A combination of labor and handling equipment is utilized in mechanized systems to
facilitate receiving, processing, and shipping. Generally, labor constitutes a high percentage of the
overall cost in mechanized handling. Automated systems, in contrast, attempt to minimize labor
as much as possible by substituting equipment capital investment. When a combination of
mechanical and automated systems is used to handle material, the system is referred to as
semiautomated. An information-directed system applies computerization to sequence mechanized
handling equipment and direct work effort. Mechanized handling systems are most common, but
the use of semiautomated and automated systems is increasing.

Mechanized Systems:

Lift Trucks: Lift trucks-also called forklifts--can move loads of master cartons both horizontally
and vertically but are not limited to unit load handling. Skids or boxes may also be transported
depending upon the nature of the product.

Conveyors: Conveyors are used widely in shipping and receiving operations and form the basic
handling device for a number of order selection systems. Conveyors are classified according to
power, gravity, and roller or belt movement.

Carousels: A carousel operates on a different concept than most other mechanized handling
equipment. Rather than requiring the order selector to go to the inventory storage location, the
carousel moves inventory to the order selector. A carousel consists of a series of bins mounted on
an oval track or rack. There may be multiple track levels, allowing for very high-density carousel
storage.

Semiautomated Systems: Mechanized handling is often supplemented by semiautomatic

equipment. Typical equipment utilized in semiautomated handling includes automated guided
vehicle systems, computerized sortation, robotics, and various forms of live racks.

Automated Guided Vehicle System: An AGVS can be used to replace mechanized tow tractors
and trailers. The essential the difference is that AGVSs are automatically routed and positioned
without a driver.

Robotics: The robot is a human-like machine that can be programmed to perform one or a series
of functions. The appeal of robotics lies in the ability to program functionality based on expert
systems using decision logic to direct the handling process.
Automated handling: For several decades the concept of automated handling has offered great
potential and limited accomplishment. Initial automated handling efforts focused on master carton
order selection systems. Recently, emphasis has shifted to automated high-rise storage and
retrieval systems. The appeal of automation is that it substitutes capital equipment for labor. In
addition to requiring less direct labor, an automated system operates faster and more accurately
than its mechanized counterpart. Its shortcomings are the high capital investment, development
complexity, and inflexibility.

Automated Storage and Retrieval Systems

An automated unit-load handling system, or Automated Storage and Retrieval System (AS/RS),
that uses high-rise storage is a popular form of automation. ASIRSs are particularly appropriate
for nonergonomic items such as heavy boxes or those products in freezer environments. The high-
rise concept of handling is typically automated from receiving to shipping. The four primary ASRS
components include storage racks, storage and retrieval equipment, input output system, and
control system.