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What is 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.

Data

INV. MASTER

ORDER MASTER

ITEM MASTER

Inventory Snapshots Average Inventory Levels

Order Header Order Detail
Item Ordered Qty Unit of Measure

SKU Number Description Item Cube Pieces Per Case Cases Per Pallet Division Product Group Item Weight

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3371% Cumulativ # Pick Daily Pick e Volume Days Frequency 0.4244% 0.038% 1.462% 1.Developing Profiling Reports & Graphs STEP #1: CONSOLIDATE & CALCULATE Inventory Master Order Data Data Item Master Data STEP #2: ANALYZE (Sort / Rank) & PRESENT Rank 1 2 3 4 Item 355 138SA 353 SW95A Number Total % Of Of Order Quantity Total Lines Ordered Volume 1895 1820 1734 1669 8971 7238 6630 5266 0.5742% 0.4633% 0.574% 1.28 3 .799% 57 57 57 57 33.42 29.25 31.93 30.

Storage Driven How Do You Design a Warehouse? • Two Ways To Design a Warehouse – Storage Driven Approach via Cube Analysis – Picking Driven Approach via Order Analysis Picking Driven .

• PART I: What is the Storage Driven Approach to Design? Define Your Storage Zones • PART II: Design Your Forward Pick Areas • PART III: Define How You Will Plan & Pick Orders .

Designing a Warehouse Part I Define Your Storage Zones .

5 40.Categorize Items By Cubic Ft of Inventory Calculate the cubic feet of storage that each item requires and then assign it to an “inventory container” of the appropriate size.0 Cubic Feet of Storage Required For An Item .125 1. Pallet Rack Bin Shelving Drawers Multi-Pallet Drive In Rack .0 320.

Develop an Inventory Container Graph Inventory Container Graph 25000 20000 # of SKUs Drawers 15000 10000 5000 0 0.5 8 Cubic Feet of Storage Needed 40 320 Now you can begin to think about what storage modes might be reasonable candidates for the merchandise you are storing… .125 1.

and “piece” pick sizes Piece Pick Case Pick Pallet Pick . “case”. a Pick scheme Classification Scheme Next develop a Usually designers will use pallet”.Developclassification Size for picks based on the size of the pick.

5 8 40 Cubic Feet of Storage Needed 320 Assess the activity in the larger containers to see if there is the possibility that some of the items should be moved to a forward pick area.125 1.Assess the Activity In Each Inventory Container Inventory Container Graph 25000 20000 15000 10000 5000 0 0. The decision will be driven by the # of such picks in the container and the overall size of the larger container storage area. # of SKUs Move these to Case Storage Piece Picks Within the Pallet Inventory Area 1200 # of Picks/ Day Piece Pick Activity Curve 1000 800 600 400 200 0 5 15 25 35 45 55 65 75 85 Cummulative # of SKU's 95 .

Designing a Warehouse Reserve Areas Part II Define Your Forward Pick Areas Forward Pick Areas .

General Process for Forward Pick Design • Questions that Must Be Answered About the Forward Pick Area(s): • How many forward pick areas do you need? • Determine how many SKUs should go on the pick line • Removing unusual SKUs from the pick line • Sequence the SKUs on each pick line .

Order Completion Analysis By Size of Pick 80% of Picks from 20% of Items 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Full Case Orders Broken Case Orders Overall % Orders Complete % Items These Items should go into a forward pick area. If so. . you will likely want to set up a forward pick area for that Pick Size.You will likely have multiple forward pick areas For each Pick Size you need to decide if there are a lot of picks associated with a relatively small subset of the items.

Determining How Many Items in Forward Pick Generally to determine how many items you are going to put in the forward pick area you look at the tradeoff between adding an item into the forward pick area and the % of additional orders you are then able to complete in that area. Number of SKUs 20 30 40 50 60 70 80 100 110 120 130 140 150 160 % Case Picks Filled 33 46 52 67 73 79 81 88 92 92 95 98 98 100 % Days Picked 99 97 95 93 92 90 83 Trade Off: Space Utilization and Efficiency 100% 80 60 40 20 100% 80 60 40 20 90 84 79 68 63 52 44 33 25 22 0 20 40 60 80 100 120 140 160 0 Number of SKUs % Days Picked % Case Picks Filled .

6998% 1.0% 99.5150% 0.9939% 0.9851% 1.8734% 0.0% 100.0% 99.2451% 9.0% 99.6998% 5.0% 99.8968% 15.Determining How Many Items in Forward Pick Rank Item Days Shipped (Out of 104) 104 104 104 104 104 104 103 103 103 103 103 103 % Of Frequency (By Day) 100.8938% 12.9463% 1 2 3 4 5 6 7 8 9 10 11 12 S118R S12DC S23DC 522X SP2I 2091I 3232W 3232I SPT8W SP8I SP8W P8I 90 .0% 99.0% 100.0% 100.9380% 0.5929% 0.0% 100.0% Case Picks 20045 10757 4732 3212 507 14350 16270 16173 8208 5385 5082 3345 % Of Total Cummulative Case Picks Case Picks (541.0030% 2.3288% 19.0936% 2.3969% 18.0% 99.6853% 6.1515% 7.786) 3.8819% 17.6174% 3.5587% 7.0% 100.9855% 0.3908% 19.6486% 3.

Designing a Warehouse Part III Define How To Plan & Pick Orders .

They often also wait until the end to define the planning and picking approaches for the exceptional orders. the details behind their thinking are not usually flushed out until the end of the project. .Wave Planning & Picking Approaches Daily Order Pool Orders of this “type” get released to the floor and picked in the following manner every X hours Orders of this “type” get released to the floor and picked in the following manner every Y hours While designers make assumptions at the start of a design about how the bulk of the orders will be released and picked.

Ways in which you can process orders differently • Order Selection Criteria & Groups Forced Upon You By The Business Efficiency Opportunity – Rush vs Regular Orders – Geography (West Coast vs East Coast) – Orders Requiring Personalized Merchandise – Single vs Multi-Line Orders – Types of Picks Needed to Complete Order – Order Cube (Sm Pkg vs LTL vs TL) .

Cumulative % of Orders 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0 2 4 6 8 10 12 14 16 18 20 45% of all Orders are single unit orders. . Units Per Order One of the greatest opportunities to improve warehouse efficiency is choosing a different mechanism for picking single unit orders from multi-unit orders.Assess the Significance of Single Unit Orders Units/Order as a Percentage of Total Orders 100% .

.Assess the significance of grouping by area Reserve (Pallet) Area Orders Completed By Area 10% % Pick Lines % Orders Mixed Case Forward Pick Area 20% 30% Full Case Only 25% 60% Piece Forward Pick Area Broken Case Only 0% 10% 20% 30% 40% 50% 55% 60% 70% Orders that require merchandise coming from different storage areas within the warehouse may need to be picked differently.

.Deciding on a Picking Approach Sorting Picks at End of Tour Order #2 Order #1 Single Order Picking Multi-Order Picking Batch Picking After the different groups of orders have been identified. the designer has to make a decision about how each group of orders will be picked.

5 1 5% Order #1 5% 8 3% 32 1% 64 2 Multi-Order Picking Cart Order Cube (Cu Ft) .How Will Orders in Forward Pick Be Picked? Multi Line Order Cube Order #3 80% 70% 75% Order #2 % of Total Orders 60% 50% 40% 30% 20% 10% 0% Good candidates for Multi Order Picking 10% 0.

Deciding on a Picking Medium Label Picking Radio Frequency (RF) Barcode Picking Voice Picking For each picking approach you need to decide on a mechanism for how picks will be communicated to pickers. Pick To Light .

How Do You Plan & Pick Different Orders Order Group Pick Method Pick Medium Small Cube Multi-Line Orders Multi-Order Picking RF Terminals Single Line Orders Batch Picking Labels .

Summary of Warehouse Design Process • PART I: Define Your Storage Zones • PART II: Design Your Forward Pick Areas • PART III: Define How You Will Plan & Pick Orders .

Observations • Every descriptive tool or technique seems to be based on a specific “need” • Profiling/design is less about “describing” an “as is” warehouse. computational “description” from which all the different “needs” can be met? . than about saying how it “should have been” • It’s hard to integrate the different descriptive tools and techniques • Can we build a comprehensive.

Schema Process Model .

. GAMS.AMPL. AIMS. and are used to create instances of optimization models. and other “modeling languages” incorporate a reference model for the domain of optimization models.

. factories. e.Can reference models be developed for the domain of discrete event logistics systems. and supply chains? .g. warehouses. or for subsets of the domain.