Inventory management notes

1. Material Handling
Material handling is the movement, protection, storage and control of materials and
products throughout manufacturing, warehousing, distribution, consumption and
disposal. As a process, material handling incorporates a wide range of manual,
semi-automated and automated equipment and systems that support logistics and
make the supply chain work. Their application helps with:
 Forecasting
 Resource allocation
 Production planning
 Flow and process management
 Inventory management and control
 Customer delivery
 After-sales support and
A company’s material handling system and processes are put in place to improve
customer service, reduce inventory, shorten delivery time, and lower overall handling
costs in manufacturing, distribution and transportation.
The role of material handling plays is significant and has become a topic of discussion, in
particular amongst manufacturing companies. Every type of product that has been
manufactured or produced has been involved in a material handling sequence of some sort.
Whether that be transported via forklift, or along a conveyor line. Many large manufacturing
companies invest millions of dollars every year to ensure that there material handling
processes and flows are up to date and efficient.
This is where the idea of lean manufacturing and six sigma have originated, as processes and
ideas to eliminate inefficiencies within manufacturing processes.
Creating an efficient material handling system for a large factory, facility or warehouse isn’t
an easy take to accomplish. The dynamic environment that all industries exist in today makes
it very difficult to plan long term. Especially with the development of the internet and the
personalization of many products it has become more and more difficult for manufacturers to
keep up with the level of customization now offered to consumers.
Material handling systems are planned out to help develop best practices and methods within
a facility for long-term efficient flows. There are generally ten material handling principles
which have been taken and used by a majority of facilities globally. These principles have
been made and have greatly helped facility managers with the productivity, customer service,
and profitability of their factories.
There is a variety of manual, semi-automated and automated material handling
equipment and technologies available to aid in the movement, protection, storage
and control of materials and products throughout manufacturing, distribution,
consumption and disposal. These include:

2.  Automated storage and retrieval systems
 Automated storage and retrieval systems, sometimes known as ASRS or
AS/RS, are made of a variation of computer-controlled systems that
automatically place and retrieve loads from set storage locations in a facility
with precision, accuracy and speed.
 Automatic guided vehicles (AGVs)
Computer-controlled and wheel-based, automatic guided vehicles (AGV) are load
carriers that travel along the floor of a facility without an onboard operator or
driver. Their movement is directed by a combination of software and sensor-based
guidance systems. Because they move on a predictable path with precisely
controlled acceleration and deceleration, and include automatic obstacle detection
bumpers, AGVs provide safe movement of loads. Typical AGV applications
include transportation of raw materials, work-in-process, and finished goods in
support of manufacturing production lines, and storage/retrieval or other
movements in support of picking in warehousing and distribution applications
 Automatic identification and data collection
Used to identify and track items, automatic identification and data
collection (also called AIDC, Auto ID, automatic data capture and automatic data
collection) is a family of technologies that identify, verify, record, communicate and
store information on discrete, packaged or containerized items. Because the
process is automated (rather than reliant on pen, paper and people), information is
gathered quickly and accurately. The most common technologies used to identify
and capture data are barcodes, handheld and fixed-position scanners and
imagers, radio frequency identification (RFID) tags and readers, and voice
recognition, weighing and cubing devices. Typical applications include receiving
and putaway, inventory picking, order fulfillment, determination of weight and
volume, and tracking and tracing throughout the supply chain

3.  Casters and wheels
When mounted to the underside of a piece of
equipment, casters and wheels make it easier for personnel or machinery to
transport a load or group of items from one place to another in a manufacturing or
distribution facility. Typical industrial applications include platform
trucks, carts, hand trucks, assemblies and tow line conveyor carriers
 Conveyors
Used for movement of materials, products and loads throughout a manufacturing or
distribution facility, conveyors are horizontal, inclined or vertical devices. Product
transport is powered by gravity or by hydraulic or electric power. Loads ride atop
rollers or a belt that travels along a fixed path with specific points for loading and
discharge. Because they enable large volumes of material to be moved rapidly
through a process or facility, conveyors reduce labor costs by eliminating non-value-
added travel time. Typical conveyor applications include movement of cases, totes or
palletized loads into and out of a trailer, to and from static or automated storage
systems, or from a picking area to packaging for shippin
 Ergonomics
Many materials handling activities involve strenuous or repetitive activities, such
as lifting loads, installing a component, or picking products. Those physical
stresses could lead to worker injury and additional costs associated with lost
productivity and downtime. Ergonomic equipment is used in many facilities to help
the task fit the worker, instead of forcing the worker to fit the task. A variety
of ergonomic assist systems improve the safety and well-being of operators
working in manufacturing and warehousing facilities. Typical applications include
lifting a worker or the item to the appropriate height to comfortably complete a
task, tilting a load for picking, elevating or rotating a component for additional
assembly, or supporting a load during its movement
 Industrial robots
 Because they can be programmed to perform dangerous, dirty and/or
repetitive tasks with consistent precision and accuracy, industrial robots are
increasingly used in a variety of industries and applications. They come in a

4. wide range of models with the reach distance, payload capacity and the
number of axes of travel (up to six) of their jointed arm being the most
common distinguishing characteristics.
 In both production and handling applications, a robot utilizes an end
effector or end of arm tooling (EOAT) attachment to hold and manipulate
either the tool performing the process, or the piece upon which a process is
being performed.
 The robot’s actions are directed by a combination of
programming software and controls. Their automated functionality allows
them to operate around the clock and on weekends—as well as with
hazardous materials and in challenging environments—freeing personnel to
perform other tasks. Robotic technology also increases productivity and
profitability while eliminating labor-intensive activities that might cause
physical strain or potential injury to workers
 Lift trucks
 For independent movement, lifting and placement of discrete loads throughout
a facility, a variety of motorized lift trucks or forklifts can be used. These
mobile, self-loading trucks are power-propelled to carry, push, pull, lift, stack
or tier material. Trucks can be outfitted with forks for pallet-based unit load
picking, or with a variety of attachments—such
as platforms, grippers or clamps—for handling loads that are not palletized.
Other motorized vehicles transport personnel or loads onboard or towed
behind. Manually powered vehicles, such as carts and hand trucks can be
used to move lighter loads.
 The maximum amount of weight a vehicle can carry and/or lift is dependent
on its capacity rating, as well as its power source. The flexibility afforded by a
maneuverable lift truck makes them an important tool in a facility. Typical uses
in warehouses and distribution centers include placing and removing loads
into storage rack, loading and unloading trailers in the yard or at the dock,
delivering components to an assembly line, and positioning loads for further
handling processes
 Monorails and workstation cranes
 For materials that are too bulky or heavy to move through a process or facility
with lift trucks or fixed, floor-mounted conveyors monorails and workstation
cranes move and position loads. They maximize the vertical space in a facility
by transporting loads overhead.

5.  Their travel is directed by an operator, either manually or with a wired pendant
station or wireless controls. These direct their horizontal, vertical or lateral
load movements.
 Monorails and workstation cranes are typically used to support manufacturing
activities. Monorails typically transport loads from one process to the next.
Workstation cranes are usually dedicated to a specific location to support a
load during a specific step.

 Overhead cranes
 Packaging
 Protective guarding
 Racks
 Software
 Sortation
 Storage
Material handling systems are used in every industry, including:
 Aerospace
 Appliance
 Automotive
 Beverage
 Chemicals
 Construction
 Consumer goods
 E-Commerce
 Food
 Hardware
 Hospital
 Manufacturing
 Materials processing
 Paper
 Pharmaceutical
 Plastics

6.  Retail
 Warehousing and distribution
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When designing a material handling system, it is important to refer to best practices
to ensure that all the equipment and processes—including manual, semi-automated
and automated—in a facility work together as a unified, system. By analyzing the
goals of the material handling process and aligning them to guidelines, such as
the 10 Principles of Material Handling, a properly designed system will improve
customer service, reduce inventory, shorten delivery time, and lower overall handling
costs in manufacturing, distribution and transportation. These principles include:
1. Planning: Define the needs, strategic performance objectives and functional
specification of the proposed system and supporting technologies at the outset of
the design. The plan should be developed in a team approach, with input from
consultants, suppliers and end users, as well as from management, engineering,
information systems, finance and operations.
2. Standardization: All material handling methods, equipment, controls and software
should be standardized and able to perform a range of tasks in a variety of
operating conditions.
3. Work: Material handling processes should be simplified by reducing, combining,
shortening or eliminating unnecessary movement that will impede productivity.
Examples include using gravity to assist in material movement, and employing
straight-line movement as much as possible.
4. Ergonomics: Work and working conditions should be adapted to support the
abilities of a worker, reduce repetitive and strenuous manual labor, and emphasize
safety.
5. Unit load: Because less effort and work is required to move several individual
items together as a single load (as opposed to moving many items one at a time),
unit loads—such as pallets, containers or totes of items—should be used.
6. Space utilization: To maximize efficient use of space within a facility, it is
important to keep work areas organized and free of clutter, to maximize density in
storage areas (without compromising accessibility and flexibility), and to utilize
overhead space.
7. System: Material movement and storage should be coordinated throughout all
processes, from receiving, inspection, storage, production, assembly, packaging,
unitizing and order selection, to shipping, transportation and the handling of
returns.

7. 8. Environment: Energy use and potential environmental impact should be
considered when designing the system, with reusability and recycling processes
implemented when possible, as well as safe practices established for handling
hazardous materials.
9. Automation: To improve operational efficiency, responsiveness, consistency and
predictability, automated material handling technologies should be deployed when
possible and where they make sense to do so.
10.Life cycle cost: For all equipment specified for the system, an analysis of life
cycle costs should be conducted. Areas of consideration should include capital
investment, installation, setup, programming, training, system testing, operation,
maintenance and repair, reuse value and ultimate disposal