The document discusses technologies used in computerizing warehouse operations to streamline processes and minimize errors. It describes how identification technologies like barcodes, RFID, and smart cards work with communication systems using radio frequency, synthesized voice, displays, and pick-to-light systems to provide operators real-time information paperlessly. The bullwhip effect is explained as variations in customer demand amplifying as orders move up the supply chain due to forecasting errors and companies carrying buffer stock.

1. Computerizing Warehouse Operations
Bullwhip Effect

2. What is the purpose of technology in the warehouse?
Provide timely and accurate information to help managers make decisions
in running all warehouse activities
Identify patterns in volume, productivity, quality, order cycle time, etc...
Streamline transaction communications between WMS and operators
Minimize or eliminate the need for paper

3. Why move towards a paperless system?
Paper is inefficient, easy to lose, often contains too much information,
too slow (not real time), prone to mistakes, too limited in scope.
A paper less system needs two things to operate:
1. The ability to identify objects
Identification technologies include:
Bar codes
Barcode scanners
Radio Frequency Tags (RF)
Smart Cards
Magnetic Strips

4. 2. A way to communicate and present information to the operator
Radio frequency communication
Synthesized voice
Displays
Pick-to-light
Identification Technologies:
Bar Codes
Bar code symbology is used to represent alphanumeric characters.
Bar codes are used for
Product identification
Location identification
Container identification
Operator identification
Equipment identification
Document identification
There are a variety of bar code formats

5. Bar Code Formats
Code 39
Universal Product Code (UPC)
UPC/EAN (European Article Number)
Codabar
Code 93
Code 128
Stacked Symbology
Two-Dimensional Codes (High Density Barcode)

6. Bar Code Scanners: There are two primary types:
1. Contact Readers: Usually handheld
a. Light Pen
b. Wand Scanner
2. Noncontact Readers: Handheld or Stationary
a. Fixed Beam: Uses a stationary light source to scan the
bar code. The object being scanned must move beneath
the beam.
Examples include Inline scanners and Omnidirectional
scanners
b. CCD (Charged Couple Device)…like a digital camera
c. Handheld scanners

7. Radio Frequency Tags (RF)
Data is encoded on a chip
Chip is encased in a tag
The tag’s data is read by an antenna from a distance
Data can be permanent or programmable
Advantages :
Easy to “take” inventory
Durable
Disadvantages:
Cost prohibitive
Magnetic Stripes
Data is stored magnetically
Capable of storing large amounts of information
The stripe must be “swiped” in order for it to be read

8. Communication and Presentation Technologies
Radio Frequency (RF)
Information is communicated via RF to portable radio data
terminals (RDT).
RDTs display information on a display screen.
RDTs have a keyboard enabling operators to send data via RF
Synthesized Voice
Computer synthesized voice is used to direct operators.
Operators may be capable of talking back to system
Operators wear an RF unit connected to a headset
Advantage:
Hands free operation
Does not require the operator to read

9. Pick-to-Light System:
Light indicators coupled with alphanumeric displays which
directs the operator in what and how much to pick or putaway
Bullwhip

10. Bullwhip Effect
• Customer demand is rarely perfectly stable
• Businesses must forecast demand to ensure enough inventory and resources
are available
• Forecasts are based on statistics and are not perfect.
• Due to forecasting error, companies carrier “buffer” stock or “safety stock”
• Moving up the supply chain, each supplier has greater variation leading to a
a greater demand for safety stock
• Periods of increasing demand, down stream suppliers increase orders
• In periods of falling demand, down stream suppliers orders decrease to reduce
inventory
• The result is that variations become amplified as you move upstream in the supply
chain (opposite direction from the customer)

11. Causes can be divided into Behavioral and Operational
Behavioral Causes:
Misunderstanding of feedback and time delays
Panic ordering, over reaction after un-met demand events
Perceived risk to other players in the supply chain
Misuse or misappropriation of base-stock
Operational Causes:
Forecast errors
Lead time variability
Order synchronization
Trade promotions
Anticipation of shortages