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08W10Ch07 - Facilities - Warehouse Operations
08W10Ch07 - Facilities - Warehouse Operations
Chapter 7
Warehouse Operations
Tran Van Ly
Industrial Engineering and Management
International University
23/09/27 1
Email: tvly@hcmiu.edu.vn
Part three:
Facility Design for various facilities functions
Fig 07_01: Warehousing opportunities within Fig 07_02: Typical warehouse functions and flows
a logistics network
Fig 07_04:
Receiving and
shipping analysis
chart
*
Determine internal receiving and shipping area requirements
Table 07_03: Minimum Maneuvering allowances for receiving and shipping areas
*
Example 1: Space estimation and breakdown at receiving and shipping
Figure 7-9: (a) Site and (b) dock area for example 1
Fig 07_15: Modular designs of storage/warehouse facilities with expansion alternatives shown.
5. Storage operations
Storage analysis chart
5.1 Storage space planning
Example 2:
At the ABC manufacturing firm, the average daily
withdrawal rate for product A is 20 cartons per day,
safety stock is 5 days, order lead-time is 10 days, and
the order quantity is 45 days.
Q
Reorder
point, R
Safety Stock
0
LT LT
Time
13-16
Example 2 (solution)
• Reorder points
= safety stock + lead time demand = 300 cartons
A A
A A A
A A A A
Floor elevator view Outside wall plan view
Space standard
4‘ 9’
10 ‘
= 4+10+9+10+4 =37
Storage assignment method
• Randomized storage (floating slot)
• Dedicated storage (fixed slot)
• Hybrid types
– class-based dedicated storage
– “supermarket” storage
Inventory levels for six products in a warehouse, expressed in pallet loads of product
Example 4:
A single input/output (I/O) point serves following storage area. (see
figure 7-17)
All movement is in full pallet-load quantities. The storage area is
subdivided into 10x10 ft storage bays. Three classes of products (A, B
and C) are to be stored. Class A items represent 80% of the input/output
activity and have a dedicated storage requirement of 40 storage bays, or
20% of the total storage; class B items
generate 15% of the I/O activity and have a dedicated storage
requirement of 30% of the total, or 60 storage bays; and class C items
account for 5% of the throughput for the system, but represent 50% of the
storage requirement.
Assume that lift truck travel between the I/O point and individual storage
bays can be approximated by rectilinear distances between the dock and
the centroid of each bay.
Assign product classes A, B and C to the storage area in order to
minimize the total distance travelled, if a dedicated storage policy is used
Example 4 (solution)
• Compute distances-to-travel (average distance traveled in following table)
One of the assignments of products to locations that will result in minimal travel is
given in below figure.
Other principles: similarity, size, characteristics,
space utilization.
• Notations:
q, number of storage locations
n, number of products
m, number of input/output (I/O) points (docks)
Sj , number of storage locations required for product j
Tj, number of trips in/out of storage for product j, i.e throughput of j
pi , percentage of travel in/out of strorage to/from I/O point i
dik, distance required to travel from I/O point i to storage location k
Xjk: 1 if product j is assigned to storage location k; otherwise, 0
f(x), average distance travelled.
• Procedure to minimize EDT (expected distance traveled)
Consider the warehouse of which the layout is given below. Storage bays are of
size 20x20 ft. Docks P1 and P2 are for truck delivery; docks P3 and P4 are for rail
delivery. Dedicated storage is used.
Sixty percent of all item movement in and out of storage is from/to either P 1 or P2
with each dock equally likely to be used. Forty percent of all item movement in and
out of storage is equally divided between docks P3 and P4. Three products, A, B and
C, are to be stored in the warehouse with only one-type product stored in a given
storage bay. Product A requires 3600 ft² of storage space and enters and leaves
storage at a rate of 750 loads per month; product B requires 6400 ft² of storage
space and enters and leaves storage at a rate of 900 loads per month ; product C
requires 4000 ft² of storage space and enters and leaves storage at a rate of 800
loads per month. Rectilinear travel is used and is measured between the centroids of
storage bays.
p1 p3
p2 p4
Solution
-Compute distance dik and the the fk ,
e.g: f29 = 0.3*120+0.3*100+0.2*100+0.2*80 = 102
106 110 104 118 122 126 130 134
P2 P4
86 90 94 98 102 106 110 114