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WAREHOUSE
MANAGEMENT
M O D U L E 1 – p a r t 2
I N T E R N A T I O N A L C O M M E R E C I A L L O G I S T I C S
B Y A N A M E L I S S A M O N T E N E G R O
CONTENT
BASIC CONCEPT OF
WAREHOUSEMANAGEMENT
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G E NE RA L
WA RE H OU SI N G A N D • This chapter discusses the quantitative and
qualitative distinguishing traits of public,
D IST RIB UT ION contract and private warehouses.
ST RAT EGI ES • Also cost comparison example to convey the
concept of the cost point of indifference.
Introduction • A warehouse may function as a general
public warehouse for multiple clients while
also operating as a contract warehouse for
an individual client requiring more
specialized product handling, value-adding
processes, and dedicated.
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PUBLIC WAREHOUSING
Utility
Storage area
• Offer storage and general handling services for a variety of clients and products.
• The capability for a public warehouse to shift available space, equipment, and
personnel allows the provider to offer lower cost for servicing all clients.
When to consider
• May be used to service products with demand patterns that are predictable
and to be contrary: unpredictable, unknown, minimal, or declining in
demand.
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PUBLIC WAREHOUSING
Considerations
Storage area
• Value-added services
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CONTRACT WAREHOUSING
Utility
Storage area
• Agreements are long term due to the specific nature of the services
performed and the investment in space, equipment, and employee training
to provide the specific needs – all of which are solely dedicated to servicing
the client.
When to consider
• The fixed costs required to set up for the client’s needs would reduce per unit as
throughput increased.
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CONTRACT WAREHOUSING
Considerations
Storage area
• Postponement strategies
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PRIVATE WAREHOUSING
Utility
Storage area
When to consider
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PRIVATE WAREHOUSING
Considerations
Storage area
• High service quality needed
• User service and quality more than offset capital investment and risk.
• User possesses strong skills to hire, train, and effectively manage personnel and associated costs.
• Postponement strategies
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Cost points of
Practical cost differences
indifference
• Public warehousing provides minimal • User can estimate the fixed and
commitment to long-term storage cost variable cost associated with each
including those associated with the alternative.
building, labor, equipment,
administration, and others. Warehouse FC + VC(U) = FC + VC(U) Point of
comparissons indifference
• Private warehouse operation would Public = Contract $4(U) = $30,000 + $2,5(U) 20,000 units
bear all the fixed and variable cost Contact = Private $30,000 + $2,5(U)= 56,000 units
$100,000 + $1,25(U)
associated with procuring the facility
and equipment prior to any activity
moving through the facility.
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CASE STUDY
SWEET DEAL DISTRIBUTION, INC. (SDD) – WAREHOUSE
SELECTION AND DISTRIBUTION QUALITY CASE
TO BE DELIVERY
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CONTENT
BASIC CONCEPT OF
WAREHOUSEMANAGEMENT
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STORAGE TECHNIQUES
MAINTENANCE AND
Internal transport
MAINTENANCE system
AND STORAGE
Storage systems
TECHNIQUES
CHAP T E R 3 – Técnicas de
manutención y almacenaje
Robotic
“Alm acenes anális is , warehouses
diseño y organización”
Autor: J ulio Anaya Tejeiro
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MAINTENANCE AND STORAGE
TECHNIQUES
• The word maintenance will apply either for elements used for handling
or internal transport of merchandise inside the warehouse.
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INTERNAL TRANSPORT SYSTEM
• Vertical transport
• Horizontal transport
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Horizontal transport Vertical transport
• on this type of transport merchandise do not • This transport not just allow the
need to be raise to locate in determine place.
product to be transported from one
• Industry had developed different means from the
place to another, also to be raised to
more simple to the more sophisticated.
locate in specific place.
• Pallet truck/pallet jack
• Manual pallet Jack with handlebar/control
handle
• There is a variety of resources with
• Electric pallet jack different features. We are going to
• Self-proppelled pallet truck/ Platform pallet
group as following:
truck
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Vertical transport Vertical transport
• In the market, there is a lot of They need from 2.5 m of minimum width for hallways to
operate correctly. All this trucks should be maneuvered by
options with different costs, at the a trained person.
advantages in terms of performance They could pick the merchandise on a retractable way
(right or left). The maximum height of this machines is 9
and available capacity. to 10 m.
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STORAGE SYSTEMS (EXPO)
Block storage
Storage system
(Block stacking)
Fixed
shelves/racks
Drive in/Drive
through system
Dynamic racks
Mobile
shelves/Racks
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Block storage Fixed racks
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Drive in/Drive through
Dynamic racks
racking system
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Mobile racks
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ROBOTIC WAREHOUSES
• Their height could be between 20 to 60 meters, in order to have the maximum utilization of
volume. The hallways could be around 1.20 meters.
• All the movements are done automatically, using stacker cranes. This machines do
simultaneously translation and rising to locate the merchandise in the correct alveolus.
• The numbers of stacker cranes that you will need, depend on the quantity and frequency of the
operations.
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Advantages Disadvantage
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CONTENT
BASIC CONCEPT OF
WAREHOUSEMANAGEMENT
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MAINTENACE
WAREHOUSE AND STORAGE
CAPACITY AND TECHNIQUES
STRUCTURE
CHAPTER 4 – Estructura y
capacidad de almacenaje
Functional Storage
“Alm acenes anális is , and operative capacity
diseño y organización”
Autor: J ulio Anaya Tejeiro areas concept
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FUNCTIONAL AND OPERATIVES
AREAS (EXPO)
Functional area
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FUNCTIONAL AND OPERATIVES
AREAS (EXPO)
Storage area
Square and cubic meters occupied for this area will depend of:
Measures of
the mean of Measurements
Pallets per
Hallways width containment Height levels for the
racks/shelves
(pallets, racks/shelves
baskets, cans)
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FUNCTIONAL AREA (EXPO)
This area is the space reserved for the orders classification and preparation
(once the picking is done), packaging, labelling, plastic cover. Also you will find
other control equipment as weighing control, retractable of pallets.
Loading/Unloading area:
This area is linked to docks/terminals available, and are essential elements for
the correct functioning. They should be wide enough to guarantee the flow of
the processes and avoid congestions that will mean delays.
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FUNCTIONAL AREA (EXPO)
Service area
Flow lines = Is the sequential process that follow each one of the different areas
where the workshop is done, where is developed and interrelation that allow
the correct functioning and the materials flow.
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FUNCTIONAL AREA (EXPO)
Outbound process
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STORAGE CAPACITY CONCEPT
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STORAGE CAPACITY CONCEPT
Capacity will be affected by the technology used in the
warehouse.
1 2 3 4 5 6
Linear Base Location Pallets per Available Meters
Capacity spaces levels space Capacity occupied
6 20 4 2 960 800
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STORAGE CAPACITY CONCEPT
• Area for racks without pallets
Zone B: Loose cargo with no pallets
Employed technology: Manual pallet jacks– 3,5 meters of
hallways
1 2 3 4 5 6
Linear Base Location Pallets per Available Meters
Capacity spaces levels space Capacity occupied
4 20 2 3 480 535
1 2 3 4 5 6
Linear Base Location Available Meters
Capacity spaces levels Capacity occupied
2 20 3 120 120
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STORAGE CAPACITY CONCEPT
Warehouse/Storage
capacity
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STORAGE CAPACITY CONCEPT
Average used
• It is the average of pallets or tons storage for a year.
Average used
capacity
• To get this number we based on Average Stock and
convert to pallets or tons.
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STORAGE CAPACITY CONCEPT
Volume Volume
UNDER-USED NON UNDER-USED
EXAMPLE Nominal EXAMPLE Nominal
cap. cap.
Under-
used Stocks
Average flow Average
Stocks
stock stock
flow
Stocks Stocks
STORAGE CAPACITY CONCEPT
EXERCISE 1
1 2 3 4 5 6
HELLO company’s warehouse just have
Linear Base Location Pallets/product Available Meters
two areas of storage, area for palletized Capacity spaces levels s per space Capacity occupied
8 20 6 2 1000
product and area for block storage.
Taking into account the following 1 2 3 4 5 6
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STORAGE CAPACITY CONCEPT
Concept SQM Pallets SQM/
EXERCISE 1
Pallet
With the information of the previous analysis Area of palletized products
please calculate the nominal capacity for Area of non palletized n/a n/a n/a
HELLO warehouse. products
Area for block storage
Once you get this information, calculate the
TOTAL
occupational INDEX. Please take into account
the following details:
Occupational INDEX = (Av. Used
- Average stock = 22500 cap/Nominal Cap) x 100
- Products per pallet = 22
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STORAGE CAPACITY CONCEPT
EXERCISE 1 (Answer)
HELLO company’s warehouse just have
1 2 3 4 5 6
two areas of storage, area for palletized Linear Base Location Pallets/product Available Meters
Capacity spaces levels s per space Capacity occupied
product and area for block storage.
8 20 6 2 1920 1200
Taking into account the following
information please calculate the 1 2 3 4 5 6
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STORAGE CAPACITY CONCEPT Concept SQM Pallets SQM/
Pallet
EXERCISE 1 (Answer)
Area of palletized products 1200 1920 0,62
With the information of the previous analysis Area of non palletized n/a n/a n/a
please calculate the nominal capacity for products
HELLO warehouse. Area for block storage 100 90 1,1
TOTAL 1300 2010 1,72
Once you get this information, calculate the
occupational INDEX. Please take into account
Occupational INDEX = (Av. Used
the following details: cap/Nominal Cap) x 100
- Average stock = 29500
Occupational INDEX = (1341/2010) x
- Products per pallet = 22 100 = 67%
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STORAGE CAPACITY CONCEPT
EXERCISE 2
DIANA company’s warehouse just have
1 2 3 4 5 6
two areas of storage, area for palletized Linear Base Location Pallets/product Available Meters
Capacity spaces levels s per space Capacity occupied
product and area for block storage.
7 15 5 2 920
Taking into account the following
information please calculate the 1 2 3 4 5 6
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STORAGE CAPACITY CONCEPT
Concept SQM Pallets SQM/
EXERCISE 2
Pallet
With the information of the previous analysis Area of palletized products
please calculate the nominal capacity for Area of non palletized n/a n/a n/a
HELLO warehouse. products
Area for block storage
Once you get this information, calculate the
TOTAL
occupational INDEX. Please take into account
the following details:
Occupational INDEX = (Av. Used
- Average stock = 22500 cap/Nominal Cap) x 100
- Products per pallet = 20
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