UNIVERSITY OF MISKOLC INSTITUTE OF LOGISTICS

Warehousing
6. topic

Dr. György Kovács

associate professor
tel.: 20-26 ext.
e-mail: altkovac@uni-miskolc.hu

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 WAREHOUSING
• Inventories are stocked:
– raw materials,
– semi-finished products and components,
– finished products,
waiting to be manufactured, assembled or sold.

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• Reasons for holding inventories:
– Demand seasonality
– Improving customer service level
– Price seasonality
– Exploit economies of scale in freight
transportation
– Manage demand- and lead-time randomness
– Cover inefficiencies in managing the logistics
system

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• A good inventory policy takes into account
– the economic significance of stored products,
– transportation policies,
– production process characteristics,
– competitors’policies.

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A properly designed warehouse racking system saves money
by: - reducing labour costs in the stocking and selecting of goods,
- reducing damaged goods by storing them in the type racking
designed for that product,
- postponing the need to expand or move by maximizing the storing
efficiency of your current space.

In order to create an efficient and cost effective warehouse

layout, several factors need to be considered:
- the size, weight, and type of goods to be stored,
- the type of lift equipment you own or plan to purchase,
- your existing warehouse space, taking into consideration such
factors and the placement of dock doors, the ceiling height,
staging space needed, and a logical product flow.
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Warehosuse systems for piece goods

The effective storage of goods in a warehouse normally involves the stacking of pallets,
either one pallet on top of another or, more commonly, the placing of pallets into some 12
form of racking.
1.-2. Storage without racking - stacking

During stacking, pallets are placed directly on the floor and

built up in stacks, one pallet on top of another. No storage
equipment is required.

- in block forms - in line forms

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1. Storage without racking in block form

- good floor and volume utilisation,

- LIFO principle,
- structure is used in case of monostructure of products
(small number types of stock keeping units (SKU)).

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2. Storage without racking in line form

- lower floor and volume utilisation compared block stacking,

- LIFO principle,
- structure is used in case of polystructure of products
(higher number types of stock keeping units (SKU)).

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3. Adjustable racking
- lower floor and volume utilisation,
- FIFO principle (free access to every pallet/small item due to aisles),
- structure is used in case of polystructure of products
- reducing labour costs in the stocking and selecting of goods
- reducing damaged goods by storing them in the type racking designed for
that product.

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Racking systems:
Manual operation, small item storage system (normal, gallery):

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Racking systems:
Palletized storage system, operated by machines:

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Racking systems:
Cantilever rack systems (for small items), operated by manually: Cantilever rack
systems are designed to manage loads of varying length and proportion. They can be completely accessible from the front without any of
the horizontal restrictions of traditional pallet rack. Without front column obstruction, the entire length of the rack may be used for storage.
For added flexibility, loads of differing lengths may be stored on the same rack and even at the same level. Cantilever rack is the ideal
solution for storing long or heavy items such as: Pipe, tubing or lumber. In addition furniture, carpet rolls or building materials odd-sized
dimensions store exceptionally well and are removed without damage due to excessive maneuvering around vertical or horizontal
obstructions. The welded one piece column and base makes assembly less complicated. Cantilever arms are locked into the column in the
down position before the entire system is lifted into the up position and installed in its storage location. Cantilever rack is designed for
single and double sided column use. Columns are pre-punched on both sides for conversion from single-sided to double-sided layouts.

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Racking systems:

Cantilever rack systems (for palletized products), operated by machines:

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4. Drive-in and drive-through racking
Drive In pallet rack is a highly specialized type of pallet rack meant for high density storage. The application for drive in
pallet racks is multiple pallets of the same item (SKU) where pallet selectivity or time sensitivity is not an issue. Drive
In pallet rack is named such because the lift truck actually enters, or drives into, the rack structure. The rack structure is
specifically design to accept your lift trucks as well your product to be stored.
Drive In pallet rack is considered LIFO storage. The Last pallet In will be the First pallet Out. Conversely, the first
pallet stored will be the last pallet picked. This may have an impact on time sensitive or dated inventory and must be
carefully reviewed.
Drive In pallet rack has specific design criteria that must be considered before deciding whether it is best suited for your
warehouse. The pallets are stored on "rails" instead of beams. These rails are supported by "arms" connected to the
upright frames. The rails are fixed at specific dimensions to accommodate one pallet width and allow for clearance of
the lift truck. The depth of the system is based on available space and the quantity (and size) of the pallets that will fit
the space. The height of the system is limited by the pallet height, building clear height and the max lift of the trucks.

drive-in racking drive-through racking

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Drive-in and drive-through racking:

Rails
Arms

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 Drive-in racking

Drive-through racking

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 5. Gravity flow rack / Pallet live storage
Live storage systems are made up of inclined gravity roll conveyors, laid out
side by side and at a number of vertical levels. Pallets are fed in at the higher
end and removed as required at the lower. Such a system imposes FIFO. The
only accessible pallets are at the out-feed end, so any one lane should hold
only pallets of the same SKU.
•no shelves or intermediate support required,
•fits any rack, super flexibility,
•high capacity, high durability.

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Gravity flow rack:
Manual operation, small item storage system:

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Gravity flow rack:
Palletized storage, operated by machines:

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6. Powered mobile racking

Powered mobile racking is effectively single-deep adjustable pallet racking,

with the racking mounted on electrically powered base frames, which move
on rails set into the floor. Floor loading is high. Typically only one fork
truck access aisle is provided, and the rack sections are moved to open up
access as required to any specific pallet location.
- expensive in equipment and floor costs, slow in operation, good utilisation,

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Powered mobile racking

Small item storage, manual operation:

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Powered mobile racking

Palettized storage, operated by machines:

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Powered mobile racking

Palettized storage, operated by machines:

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7. Revolving racking

Racking locations revolving around an axis.

- easy automation,
- good floor and volume utilization,
- high energy demand.

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* Paternoster: axis of rotation is horizontal

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** Carousel: axis of rotation is vertical

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*** Karnostel: axis of rotation is vertical and horizontal

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8. Storage with/on material flow machines

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Pallet movement:
- manual (a),
- powered pallet truck (b),
- powered pallet truck- high lifting (c),
- crane (d),
- reach truck (e),
- other … .

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- forklift - bridge crane - stacker crane

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 9. Automated storage and retrieval systems
- high storage high (10-40 m),
- high utilisation,
- high level of automation.
System elements:
- a storage medium, e.g. pallet racking,
- storage and retrieval machines that operate in the storage medium (e.g. stacker crane),
- in-feed and out-feed system, e.g. fork lift trucks, conveyors, AGVs,
- equipment control software.

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Stacker crane:

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Stacker crane:

- overhead track - track on the floor - track on the rackings

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Stacker crane forks (narrow-aisle racking):

- revolving fork (a),

- push fork (b)

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Stacker crane on a transfer car:

stacker crane

transfer car

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Silo and Shuttle

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Order Picking and
Replenishment

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Place of order picking:

a) Inside the storage area

b) Out of the storage area 52

Inside the storage area:

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Out of the storage area:

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Order picking concepts

Order picking
Kommissionier-
systems
Systeme

Unter Einsatz
Manual
von Automated
Personal

Goods to Picker to
Mann-zur- Dispensers Robotic
picker goods
Ware (A frames) applications

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 Work force
Time Quality

Place Safety

Cost OPTIMIZATION

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 Order picking techniques

A-frames
Pick to tote
U-bay PTL
PPS
Pick-to-voice
RF picking
Pick-to-light
Gravity racking
Picks/h
Paper based
0 100 200 500 700 1000

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 Order
Information
picking
20 % - 30 %
30% - 40%

Movement
50 % - 30 %

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 Comparison of order picking technics
in aspect of storage structure
Picker to goods Goods to picker
Paper Electronical Electronical
based based based
One level adjustable racking
Multi level adjustable racking
Palletized adjustable racking
Palletized high racking
Gravity racking

Paternoster racking

Miniload
Carousel

Automated order picking

Dimension: picking line/hour

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Egy kis összehasonlítás – hely és idő
Polcos állványok
Cikkek száma = 80
Tárolóegységek = 12

Konfiguráció
Mélység = 2 tárolóegység
Szélesség = 4 tárolóegység
A szintek száma =5

A cikkenkénti kivételi helyek száma = 12 ÷ 2 = 6

A kivételi helyek összmennyisége = 80 x 6 = 480

1 tárolómező 4 ( széles ) x 5 szint = 20 kivételi

hely

A szükséges tárolómezők száma = 480 / 20 = 24 ~ 38 m602

Egy kis összehasonlítás – hely és idő
Görgős átfolyó állvány
Cikkek száma = 80
Tárolóegységek = 12

Konfiguráció
Mélység = 12 tárolóegység
Szélesség = 4 tárolóegység
A szintek száma =5
A cikkenkénti kivételi helyek száma = 12 ÷ 12 = 1
A kivételi helyek összmennyisége = 80 x 1 = 80

1 tárolómező 4 ( széles ) x 5 szint = 20 kivételi hely

A szükséges tárolómezők száma = 80 / 20 = 4 ~ 22,4 m612

Comparison
Time reduction
60% is 66%

40%

25% 25%
15% 15%
Movement
Movement 20%
Reading Reading
Order picking Order picking

Normal racking Gravity racking

38 m2 22,4 m2

Reduction of required storage area is 41% 62

 Ergonomic Ergonomics @ work!

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 Example for productivity of order picking techniques at pharmacy

fast medium slow

A B C
15.000

S-Pemat
Ordering lines / day

K-Pemat Pick by voice

Multitec
10.000 Pick To Light

Pick to Tote,
Pick to Bucket,...

5.000 Mini-load and Pickomat

Automatic SCS SQS

2.000 Dinamic rackings Static rackings Manual

PPS, RF, PBV,…

2.000 5.000 10.000 15.000 20.000 30.000 40.000 60.000

SKU SKU = stok keeping unit

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 Cost of order picking
45

40 38,4

35

30
Cent / Pick

25 22,9

20
16,3

15

10

4,6
5
2,3
0,8
0
Automat PTL SCS Pickomat® AKL manuell

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 Thanks for your attention!

Location: University of Miskolc, A/5. buliding I. floor

Phone: +36 46 565-111/17-39
Fax: +36 46 563-399
E-mail: gkalt@uni-miskolc.hu
Web site: www.alt.uni-miskolc.hu

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