2. Introduction into Logistics
PhD Natasha Lutovinova
Logistics Lecturer
Room: G1.006

3. Handbook: Paul R. Murphy & Donald F
Handbook: Paul R. Murphy & Donald F. Wood, Contemporary logistics (New Jersey 2011), 10th edition 3

4. Introduction into Logistics Course Outline
13.05 SCM Concept, Inventory
14.05 Demand Management, Warehousing Management
15.05 Transportation Management, International Logistics
16.05 Poster Session

5. Warehousing Management
CHAPTER 10
Warehousing Management
5 - 5

6. Learning Objectives
To understand the role of warehouses and distribution centers in a logistics system
To identify the various types and functions of warehouses
To distinguish the various alternatives available in warehouse design
To examine the different types of handling equipment available
6 - 5

7. Visser, Logistics: Principles, fig. 1
Visser, Logistics: Principles, fig.1.8 cost structure of physical distribution
7 - 5

8. Warehousing Management Transportation at zero miles per hour
Warehousing emphasizes storage of products
Distribution centers emphasize rapid movement of products through the facility
Throughput is the amount of product entering and leaving a facility in a given time period
Regrouping function:
- Accumulating (bulk making)(increasing quantity)
- Allocating (bulk breaking) (reducing quantity)
- Assorting (building up a variety of products)
- Sorting out(separating products into grades and qualities)
Cross-docking (without putting into storage)
8 - 5

9. 9 - 5

10. Figure 10-2: Ideal facility for pure supplier consolidation (Full pallet movement)
Other types: H, L, T, U
10 - 5

11. Fig. 10-1 Adding a Warehousing Facility: shorter-Haul Transporation
Producer (Manufacturing)
Warehouse facility (Inventory)
Sales
Retailer A
Transportation
(Distribution)
Retailer B
Warehousing management
Retailer C
Retailer A
Transportation
(Distribution)
(Volume shipment)
Transportation
(Distribution)
Retailer B
Retailer C
11 - 1

12. Inspection + inspection
Overview of the warehouse functions
Incoming transport
Receipt + inspection
Put away
Visser, Logistics: Principles, fig.10.4 Overview of the warehouse function
Storage
Warehouse functions
Order picking
Inspection + inspection
Outbound transport
12 - 5

13. Figure 7-7: The Transportation Manager Consolidates Shipments Whenever He or She Can
13 - 5

14. Public, Private, Contract, and Multiclient Warehousing
Private warehousing
Owned or occupied on a long-term lease
Offers control to owner
Assumes both sufficient demand volume and stability so that warehouse remains full
High fixed costs
14 - 5

15. Public, Private, Contract, and Multiclient Warehousing
Public warehousing
Public warehouses
Occupational Safety and Health Administration (OSHA)
Bonded storage warehouses
Field warehousing
15 - 5

16. Public, Private, Contract, and Multiclient Warehousing
Contract warehousing
Contract warehousing (3PL warehousing) is a long-term arrangement providing unique warehousing services to one client
Both vendor and client share the risks associated with the warehousing
Less costly than private warehousing and more costly than public warehousing
16 - 5

17. Public, Private, Contract, and Multiclient Warehousing
Multiclient mixes attributes of contract and public warehousing
Limited number of customers
17 - 5

18. Design Considerations in Warehousing
General considerations
Quantity and character of goods must be known—product profiling
Know the purpose to be served
Storage
Distribution
Cross-docking
18 - 5

19. Design Considerations in Warehousing
Trade-offs
Product / material – What will be moved?
Quantity / volume – How much will be moved?
Route process sequence - Where will be moved to?
Supporting services – Which support will the movements be made with?
Time – When will the movements be made?
19 - 5

20. 20 - 5

21. Design Considerations in Warehousing
Trade-offs
Fixed versus variable slot locations for merchandise
Fixed slot location
Variable slot location
21 - 5

22. Design Considerations in Warehousing
Build out (horizontal) versus build up (vertical)
Order-picking versus stock-replenishing functions
Two-dock versus single-dock layout
Space devoted to Aisles versus Space Devoted to Storage
Paperless Warehousing
Virtual warehouse versus real warehouse
Retail Storerooms
22 - 5

23. Warehousing Operations
Storage and handling equipment
Warehouse management systems (Auto ID Data Capture technology: barcode scanners, mobile computers, Wireless LANs, RFID)
Employee safety
Proper handling of waste materials
Dunnage
Hazardous materials
Warehousing security
Sanitation issues
Stock controls
23 - 5

24. 24 - 5

25. Figure 10-8: Workplace safety issues
25 - 5

26. Warehousing Operations
Labor-intensive versus mechanization versus automation
Space devoted to aisles versus space devoted to storage
Picker-to-part versus part-to-picker systems
26 - 5