This document discusses space requirements and warehouse management. It defines key terms like space, storage, inventories, and warehouse. It describes different types of warehouses including government, cooperative, private, public, and bonded warehouses. It also defines the basic types of inventory like raw materials, work-in-progress, finished goods, and packaging materials. Finally, it outlines important warehouse processes like receiving, putaway, storage, order picking, sorting and packing, and dispatching. It stresses the importance of efficient warehouse layout and utilization of space.

1. Facility
Planning
Flow System
Activity Relationship
Space Requirement
Eng. Mohammed S. Alghamdi
Presentation By: Ayman Aljahdali

2. Space Requirement
What is Space?
Area required for production system,
storage, inventories, handling equipment.
One of the most important considerations when determining
facility requirements:
Introduction:

3. What’s the Difference Between Storage and Inventories?
Concept: Need for storage arises both for raw material as well as finished
products.
Storage involves proper management for preserving goods from the time
of their production or purchase till actual use.
When this storage is done on a large scale and in a specified
manner it’s called Warehousing.

4. Inventory is an integral part of Warehousing.
Which means that warehousing is the broader term.
Warehousing refers to all the operations from inward
movement of the stock till the product is passed out
of the warehouse.
Warehouse
A designated place where goods are stored to
balance demand &supply uncertainty, to consolidate
upstream flow and distribute downstream flow as
per requirement.
Inventory
The amount of goods and materials owned by a
company at a particular time, including parts
and finished products.
Any stored resource used to satisfy a current or
future need (raw materials, work-in-process,
finished goods, etc.).
Definition

5. Types of Warehouse
Government Warehouses
Owned, managed and
controlled by governments.
Owned, managed and
controlled
by co-operative societies.
They provide warehousing at
the most economical rates to
their members.
Co-operative Warehouses
Private Warehouses
Generally, these warehouses
are constructed by the owners
near their business, farmers
wholesalers, manufacturers.
Mostly used by manufacturers
wholesalers. Anyone can store
his goods in these
warehouses on payment of
rent.
Public Warehouses
Bonded Warehouses
used to store imported
goods for which import duty
is yet to be paid.
There are different kinds of warehouses that set each
of them apart from the rest in various ways.

6. Basic Types of Inventory
02
01
Raw materials
(MRO) goods
Packing materials
Work-in-progress
Any items used to
manufacture
finished products
Maintenance, repair & operations
goods, all items that are consumed
during the production process
Components currently
in-production, but not
yet ready for sale
All items that are
used for packing and
protecting goods
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05
03
Finished goods
Completed products
ready for sale
There are five fundamental types of inventory when it
comes to the products a business might sell.

7. Indoor
Outdoor
Racks Zone
Bulks Zone
Warehouse
Space
Utilization

8. Reasons to hold inventory Classification of inventory
✔To meet unexpected demand.
✔To safeguard against shortages.
✔To get benefit from discounts.
✔To facilitate production processes.
✔ABC Classification
✔HML Classification
✔VED Classification
✔SDE Classification
✔FSN Classification
✔XYZ Classification

9. Each Process itself can be performed in a number of ways . For example there are
numerous ways in which the materials can be stored Racks, On ground , Pallets , etc.
.Receipt
.Inbound Inspection
.Putaway
.Storage
Warehouse Process Flow
.Order Picking
.Order Sorting and Packing
.Dispatch/Shipping

10. Effective Warehouse Layout Design
Loading and unloading
Reception
Picking
Shipping - Packing
Dedicate plenty of space for the
loading and unloading area to
prevent bottlenecking.
If your warehouse has a picking
area, make sure it's in or next to
storage for easier access to
items.
Keep this area separated from
the rest of the warehouse for
better organization and traffic
flow.
Keep reception separate so that
efficient sorting and inspecting
can be done.
1
5
2
4
Storage
Utilize every inch of space,
including vertical space that would
otherwise just be air.
3

11. Conclusion
The key decision in manufacturing, retail and industry businesses is how much
inventory to keep on hand. It's usually a business’s largest asset.
Any kind of Storage systems cannot do without a warehouse management system solution.
Businesses need to choose their type based on their requirements and needs.