shipping receiving and storage

1. WAREHOUSING

2. SHIPPING PRINCIPLES
 Select cost effective & space effective handling units
 Minimize product damage
 Unitize & secure loose items in cartons and totes
 Unitize & secure loose cases on pallets
 Unitize & secure loose pallets in outbound trailers
 Eliminate shipping staging and direct load outbound trailers
 Use storage racks to minimize floor space requirements for
shipping staging
 Route on-site drivers through the site & minimize paperwork and
time
 Use small parcel shipping

3. STORAGE PLANNING
• Objectives
– To provide the required customer service
– To keep track of where items are stored
– To minimize effort to receive, put away, and retrieve
items
 Basic Stock Locating Systems
– Group functionally related items together
– Group fast-moving items together
– Group physically similar items together
– Locate working stock and reserve stock separately

4. 4
Storage Planning
 Product volume is the major concern when defining a
warehouse storage plan.
 High-volume sales or throughput product should be stored in
a location that minimizes the distance it is moved, such as
near primary aisles and in low storage racks.
 Such a location minimizes travel distance and the need for
extended lifting.
 Conversely, low-volume product can be assigned locations
that are distant from primary aisles or higher up in storage
racks.

5. 5
 Similarly, the plan should include a specific strategy for
products dependent on weight and storage
characteristics.
 Relatively heavy items should be assigned to locations
low to the ground to minimize the effort and risk of heavy
lifting.
 Bulky or low-density products require extensive storage
volume, so open floor space or high-level racks can be
used for them.
 On the other hand, smaller items may require storage
shelves or drawers.

6. 6
A Sample Storage Area

7.  Fixed Location
 A permanent location, & no other items are stored there
 Fixed-location systems usually have poor cube utilization
 Usually used in small warehouses; throughput is small
 Floating (Random) Location
 Goods stored wherever there is appropriate space
 Advantage is improved cube utilization
 It requires accurate and up-to-date information
 Warehouses using floating-location systems are usually computer-
based
Stock Location

8. Stock Location
continued…
• Two other systems sometimes used are
– Point-of-use storage
• Inventory stored close to where it will be needed
• Used in repetitive manufacturing & JIT systems
– Central storage
• Contains all inventory in one central location

9.  Advantages of Point-of-use Storage
 Materials are readily accessible to users
 Material handling is reduced or eliminated
 Central storage costs are reduced
 Material is accessible all the time
Stock Location
continued…

10.  Advantages of Central Storage
 Ease of control
 Inventory record accuracy is easier to maintain
 Specialized storage can be used
 Reduced safety stock, since users do not need to carry their
own safety stock
Stock Location
continued…

11. TYPES OF STORAGE