WarehousingmanagementDefinition:partofafirm’slogisticssystemthatstoresproducts(rawmaterials,parts,goods-in-process,finishedgoods)atandbetweenpointsoforiginandpointofconsumption.Warehousingandtransportationaresubstitutesforeachother.Tradeoffofwarehousing:anewlayerofcosts&shorter-haultransportationversusquickerresponse&greaterconvenience.Whyiswarehousingdesirable?Regroupingfunctioninquantitiesandassortments:Accumulating(bulk-making):bringtogethersimilarstocksfromdifferentsourcesAllocating(bulk-breaking):breaklargequantitiesintosmalleronesAssorting:buildupavarietyofdifferentproductsfroresaletoparticularcustomersSorting:separateproductsintogradesandqualitiesdesiredbydifferenttargetmarketsWhyiswarehousingdesirable?2.Patternsofproductionandconsumptiondonotcoincideandwarehousingservestomatchdifferentratesofflow.eg:cannedfruit3.Storageforsurpluspurchase4.Value-addedservices:assembly,light-manufacturing,producttesting,affixingstatetaxstamps,repackagingandlabelingDesignconsiderationsinwarehousingP304topandsideviewsofdistributioncenterGeneralconsiderations:Tousecommonsense.egPriortodesigningthequantityandcharacterofgoodsmustbeknown.egDifferentpurposesofstorageordistributionaffectsthespacelayout.egAtrendofcross-dockingDefinition:aprocesswhereaproductisreceivedinafacility,occasionallywithotherproductsgoingtothesamedestination,thenshippedattheearliestopportunity,withoutgoingintolong-termstorage.Itemphasizespalletloadsofproducts.P307TradeoffsinwarehousingdesignTradeoffsmustbemadeamongspace,labor,andmechanization.Productprofiling: products’physicalhandlingpropertiesthevolumeandregularityofmovementthefrequencyofpickingfastorslowmovingAcaseofapharmaceuticaldistributorTradeoffsinwarehousingdesignFixedversusvariableslotlocationsformerchandiseBuildout(horizontal)versusbuildup(vertical)Two-dockversussingle-docklayoutLabor-intensiveversusmechanizationversusautomationSpacedevotedtoaislesversusspacedevotedtostoragePicker-to-partversuspart-to-pickersystemsPaperlessversuspaper-orientedoperationsVirtualwarehouseversusrealwarehousesWarehousemanagementsystem(WMS)Functions:inventorymanagement,productreceiving,determinationofstoragelocations,orderselection,andordershipping.Theleastexpensiveonemaybe$30,000,whilepaybackperiodsgenerallyrunbetween1-2years,becauseof:HigherworkerproductivityLowerlaborcostsandfewerpickerrorsBetterutilizationofcapacityImprovedpickingproceduresandbetterservicesOtherissuesEmployeesafetyproblemsduetobadoperation,largevolumesofwastegenerated,fire,andetc.HazardousmaterialsWarehousingsecurity:theftandpilferageStockcontrolQuestionsforthecasestudyListthefactorswhichadddifficultiestoassignprecisecostsofthedeliverysystems.DoyouthinkMannixModelMarketshouldgetitsSchoeneckercandythroughthebuyingcooperativeorcontinuetorelyondirectdeliveriesbySchoenecker’sdrivers/