STORAGE &

WAREHOUSING
FACILITIES PLANNING
Missions of a Warehouse

 Functions that a warehouse may serve:

1. Balance and buffer the variation
between production schedules and
demand
2. Accumulate and consolidate products
from various points of manufacture
3. Permit rapid response.
Functions in the Warehouse
1. Receiving
2. Inspection
3. Prepackaging
4. Put away
5. Storage
6. Order Picking
7. Postponement
8. Sortation
9. Packing and shipping
10. Cross-docking
11. Replenishing
Design Consideration

Ideal Facility for Pure Warehouse Space

Supplier Consolidation Requirements
(Full Pallet Movement)
Storage Operations
 There are two main objectives in storage
and warehousing functions:
 Maximize resource utilization, such as space,
equipment, and personnel, while sustaining the
ability to obtain goods quickly.
 Maximize customer service subject to resource
constraints.
Goals in designing storage and
warehousing systems
 Maximize space utilization
 Maximize equipment utilization
 Maximize labor utilization
 Maximize accessibility of materials
 Maximize protection of materials
To achieve these goals certain requirements must
be fulfilled. The adequate space, equipment,
personnel services and offices, well trained
personnel, and a properly planned layout.
Storage space planning
 The two storage location methods
that are sometimes thought of as the
extreme points of view are:
 Randomized Storage
 Dedicated Storage
 Randomized storage is when a load arrives for storage;
the closet-available-slot is designated as the storage
location. Retrievals are performed on a first-in, first-out
(FIFO) basis. The FIFO policy provides for a uniform
rotation of stock
 Dedicated storage is use when stock-keeping-unit (SKU)
is assigned a specific storage location.
 There are two variations of dedicated storage:
 Storage of items by part number.
 Storage of items based on level of activity and
inventory.
 The amount of space required for the Randomized
Storage is the maximum of the aggregate inventory
level. The space required for the dedicated storage is
the sum of the inventory.
Storage Layout Planning
Objectives:
 To utilize space effectively
 To provide efficient materials handling
 To minimize storage cost while
providing the required levels of service
 To provide maximum flexibility
 To provide good housekeeping
Principles:
 Popularity, storing of popular in such away the travel
distance is minimized
 Similarity, the layout of storage area related to the
similarities of the items being stored
 Size, a variety of storage location sizes should be provided
 Characteristics, divided into categories of:
 Perishable materials
 Oddly shaped and crushable items
 Hazardous materials
 Security items
 Compatibility
 Space utilization, maximize space utilization as well as
maximize the level of service provided while keeping these
factors in mind:
 Conservation of space
 Limitation of space
 Accessibility