1. Materials Handling, Computerization and Packaging
CHAPTER 11
Materials Handling, Computerization and Packaging

2. Materials Handling Equipment - Manual
Racks
Conventional pallet racks
Drive-in racks
Drive-through racks
High-rise racks
Cantilever racks
Pallet stacking frames
Stacking racks
Gravity-flow racks
Shelving
Drawers
Mobile racking or shelving

3. Materials Handling Equipment - Automated
11-2 b
Materials Handling Equipment - Automated
Unit load AS/RS
Car-in-lane
Miniload AS/RS
Horizontal carousels
Vertical carousels
Man-ride machines

4. Advantages of Automated Materials Handling Systems
11-3
Advantages of Automated Materials Handling Systems
Operating cost savings
Improved service levels
Increased control through more and better information

5. Disadvantages of Automated Materials Handling Systems
11-4
Initial capital costs
Downtime of equipment
Maintenance interruptions
Software-related problems
Capacity problems
Lack of flexibility
Maintenance cost
User interface/ training
Worker acceptance
Obsolescence

6. Operational and Implementation Problems with Warehouse Automation Systems
11-5
Problem Area
Percent Mentioning
Cost of equipment/financial justification
Downtime or reliability of equipment/maintenance interruptions
Software-related problems, such as poor documentation, incompatibility, failure or modification
Capacity problems, such as limited applications/integration of equipment into existing system
Lack of flexibility to respond to changing environment/not suitable for high degree of seasonality in business
Maintenance cost/ maintenance parts
User interface/training to operate system/transition from manual to automated procedure
Worker acceptance of automation
No problems/ we are adapting well
Lack of top management commitment
Obsolescence/ need more up-to-date automation/ need more automation
19.0%
10.0
8.0
6.0
5.0
4.0
3.0

7. Warehousing in a JIT Environment
11-6
Warehousing in a JIT Environment
Total commitment to quality
Reduced production lot sizes
Elimination of non-value-added activities

8. Functions of Packaging
11-7
Functions of Packaging
Marketing
Information
Promotion
Logistics
Containment
Protection
Apportionment
Unitization
Convenience
Communication

9. Benefits of Good Packaging
11-8
Benefits of Good Packaging
Lighter packaging may save transportation costs.
Careful planning of packaging size/cube may allow better space utilization.
More protective packaging may reduce damage and requirements for special handling.
Environmentally conscious packaging may save disposal costs and improve the company’s image.
Returnable containers provide cost savings and environmental benefits.

10. Technologies of the Modern Warehouse
11-9
Warehouse management systems (WMSs)
Radio frequency communication and inventory update
Bar-code reading and label generation equipment
EDI and the Internet
Transportation management systems
Interface to enterprise requirements planning (ERP) systems
Productivity tracking software
Activity-based costing software

11. Information Flows in the Supply Chain
11-10
Supplier communication
Manufacturer communication
Warehouse communication
Carrier communication
Customer communication
Supplier
Carrier
Inbound
carrier
Customer
Manufacturer
warehouse
Order (or complaint) information
Order/complaint
Delivery information
Appointment information
Order information
Pickup schedule
Source: Arnold Maltz, the Changing Role of Warehousing (Oak Brook,IL: Warehousing Education and Research Council, 1998), p. 27.