Warehouse Operations

Warehouse Operations

1. Mission

   • 1.Improve order picking operations
   • 2.Utilizing cross-docking
   • 4.Increase productivity (increase the use of space)
   • 3.Utilizing space
   • 5.Increase value added service

2. Function

   • 1.Receiving
   • 2.Inspection and Quality Control
   • 3.Repackaging
   • 4.Put away
   • 5.Storage
   • 6.Order picking
   • 7.Sortation
   • 8.Packing and shipping
   • 9زCross-Docking
     • Definition
       • unloading materials and loading them directly with little or no storage in between
     • Positives
       • Streamlines the supply chain from point of origin to point of sale
         • Reduces handling costs, operating costs, and the storage of inventory
           • Reduces, or eliminates warehousing costs
             • Products get to the customer faster
               • May increase available retail sales space
     • Negatives
       • Potential partners don't have necessary storage-capacities
         • Need of adequate transport fleet to operate Cross-Docking
           • Need of adequate IT-System

3. Receiving & Shipping Principles

   • 1.Select cost and space-effective handling units
   • 2.Minimize product damage
   • 3.Eliminate shipping staging
   • 4.Use-storage rakes to minimize floor-space requirements
   • 5.Rout on-site drivers through the site and minimize paperwork and time
   • 6.Use small-parcel shipping

4. Reorder point = (safety stock in days) (demand /day) + (lead time in days) (demand /day)

5. Definitions

   • Warehouse is a commercial building for storage of goods

6. Maximum quantity to be ordered= (safety stock) + (order quantity)

7. Average quantity to be ordered= ½ (order quantity) + (safety stock)

8. Maximum quantity to be stored = ((Available space) / (Stacking space) )* Unit/stack