Warehouse MGMT BBslides1

Contemporary Logistics
Twelfth Edition
Chapter 10
Warehousing Management
Copyright © 2018, 2015, 2011 Pearson Education, Inc. All Rights Reserved.
Learning Objectives
10.1 To discuss the role of warehousing in a logistics system
10.2 To learn about public, private, contract, and multiclient warehousing
10.3 To analyze select considerations when designing warehousing
facilities
10.4 To examine some prominent operational issues in warehousing
The Role of Warehousing in a Logistics System
• Warehousing
 Refers to “that part of the firm’s logistics system that
stores products (raw materials, parts, goods-in-process,
finished goods) at and between points of origin and point
of consumption”1
1Douglas
M. Lambert, James R. Stock, and Lisa M. Ellram, Fundamentals of Logistics Management (New York: Irwin
McGraw-Hill, 1998), Chapter 8.
© 2008 Prentice Hall
• Production and consumption may not coincide

 Serves to match different rates or volumes of flow when
patterns of production and consumption do not coincide
• Substitute for transportation
 Warehousing and transportation are substitutes for each
other, with warehousing having been referred to as
“transportation at zero miles per hour”
Figure 10.1: Adding a Warehousing Facility:
Shorter-Haul Transportation
• Warehousing
 Facilitates the regrouping function in a supply chain
o Involves rearranging the quantities and assortment of
products as they move through the supply chain
 Regrouping can take place in four forms:
—Accumulating (bulk making)
—Allocating (bulk breaking)
—Assorting
—Sorting out
• Warehousing can be provided by:

 Warehouses
 Distribution centers
 Fulfillment centers
 Cross-docking facilities
8
Warehouse, Distribution Center,

Fulfilment Centers, Cross-Docking
Warehouse Distribution Fulfilment Cross-docking
Center Center facility
Focus: Focus: Focus: Focus:
Purpose: Purpose: Purpose: Purpose:
Complete
this chart
prior to class
• Warehouses
 Emphasize the storage of products
 Primary purpose is to maximize the usage of available
storage space
• Distribution centers
 Emphasize rapid movement of products through the
facility
 Attempt to maximize throughput
o Throughput is defined as the amount of product
entering and leaving a facility in a given time period
• Fulfillment centers
 Focused on e-commerce orders
• Cross-docking
 Defined as “the process of receiving product and shipping it
out the same day or overnight without putting it into storage”3
 Key benefits include improved service by allowing products to
reach their destinations more quickly as well as reduced
inventory carrying costs from less stock because of faster
product delivery4
• Is differentiated from distribution centers by the length of time a
product is in a facility (24 hours or less for cross-docking facility)
3No author, “2008 Cross-Docking Trends Report,” Saddle Creek Corporation, 2008.
4Mike DelBoro, “Cross-Docking Rediscovered,” Material Handling & Logistics, May 2011, 34–310.
Figure 10.2: Ideal Facility for Pure Supplier
Consolidation (Full Pallet Movement)
Source: Reprinted by permission of the Warehousing Education and Research Council.
Public, Private, Contract, and Multiclient
Warehousing
• Organizations must also decide the proper mix in terms of
warehouse ownership
 Owning
o Private warehousing
 Renting
o Public warehousing
o Contract warehousing
o Multiclient warehousing
13
Public, Private, Contract, and

Multiclient Warehousing
Private Public Contract Multiclient
Pros: ?? Pros: ?? Pros: ?? Pros: ??
Cons:?? Cons:?? Cons:?? Cons:??
Complete
this chart
prior to class
Design Considerations in Warehousing
• General considerations
 Quantity and character of goods to be handled must be
known
 Know the purpose to be served by a particular facility
o Facility with low rates of product turnover should be
laid out in a manner that maximizes utilization of the
cubic capacity of the storage facility
o Facility that emphasizes rapid product movement with
limited time in storage should be configured to
facilitate the flow of product into and out of it
• Trade-offs
 Must be made among space, labor, and mechanization
with respect to warehouse design
– Fixed versus variable slot locations for merchandise
– Build out (horizontal) versus build up (vertical)
– Order-picking versus stock-replenishing functions
– Two-dock versus single-dock layout
– Conventional, narrow, or very narrow aisles
– Degree of automation
– Other space needs
Warehousing Operations
• Some prominent operational issues include:
 Warehousing productivity analysis
 Safety considerations
 Hazardous materials
 Warehousing security
 Cleanliness and sanitation
Key Terms (1 of 2)
• Accumulating (bulk-making) • Fixed slot location
• Allocating (bulk-breaking) • Fulfillment centers
• Assorting • Hazardous material(s)
• Contract warehousing • Multiclient warehousing
• Cross-docking • Occupational Safety and
Health Administration
• Distribution center
(OSHA)
• Dunnage
Key Terms (2 of 2)
• Private warehousing • Variable slot location
• Public warehousing • Velocity slotting
• Regrouping function • Warehouse automation
• Sorting out • Warehouses
• Throughput • Warehousing
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Contemporary Logistics

The Role of Warehousing in a Logistics System

• Production and consumption may not coincide

• Warehousing can be provided by:

Warehouse, Distribution Center,

Purpose: Purpose: Purpose: Purpose:

Source: Reprinted by permission of the Warehousing Education and Research Council.

Public, Private, Contract, and

Cons:?? Cons:?? Cons:?? Cons:??

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