QUALIFICATION:B.TECH: INDUSTRIAL ENGINEERING
SUBJECT:LOGISTICS ENGINEERING
DATE:26 SEPTEMBER 2018
LECTURER:MRS HESTER JACKSON
STUDENT NAME:PRESTON BISHUN
STUDENT NUMBER:21345789
ASSIGNEMENT TOPIC:WAREHOUSE OPTIMIZATION STRATEGIES

Contents
TOC o “1-3” h z u Introduction PAGEREF _Toc525578104 h 4Warehousing operations and processes around storage activity PAGEREF _Toc525578105 h 4Why to focus on warehousing PAGEREF _Toc525578106 h 5Objectives to be achieved by logistics department PAGEREF _Toc525578107 h 6Warehouse optimisation challenges. PAGEREF _Toc525578108 h 6Lean warehousing PAGEREF _Toc525578109 h 7Impact of the warehousing to the financial state of the company PAGEREF _Toc525578110 h 8Warehouse space planning PAGEREF _Toc525578111 h 8Layout PAGEREF _Toc525578112 h 9Inventory layout PAGEREF _Toc525578113 h 10Typical warehousing operations PAGEREF _Toc525578114 h 11Storage PAGEREF _Toc525578115 h 13Warehouse optimization strategies. PAGEREF _Toc525578116 h 14Conclusion PAGEREF _Toc525578117 h 15Bibliography PAGEREF _Toc525578118 h 15
Warehouse optimization Strategies
Executive Summary
Co-ordination of warehouse operations efficiently is critical in the supply chain management of all manufacturing industry. Lean tools and techniques are widely used in optimization problems where this study also the get the assistance of Lean techniques to optimize the warehouse operations. When seeking to optimise warehouse activities there are various opportunities to explore. According to Lean warehouse thinking it can be decided that the efficiency of warehouse operations depends on the layout arrangement, material handling techniques and media of transportation. Therefore, this study attempts to optimize warehouse layout: by allocating an economical place to each type of item while minimizing the honeycombing. Generating a shortest route to collect all the items of a respective order is also an objective of this.

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IntroductionWarehouse optimization is the key to efficient operation of warehouses of all sizes. A disciplined process, warehouse optimization includes automation and a determination of how to save time, space, and resources while reducing errors and improving flexibility, communication, management, and customer satisfaction. Other warehouse optimization considerations include warehouse flow, product placement, storage, and retrieval systems. Warehouse optimization is vital to lean warehouses and agile supply chains. The most efficient warehouses are those that have been optimized to beat the competition on every level.

Modern logistics warehouse and distribution centres are designed on the basis of optimization and efficiency studies. Warehouse management systems become extremely important and more complex therefore end users find it difficult to manage. The warehouse management system which drives logistics warehouses and distribution centres are core elements of the material and goods flow in logistic chain. Warehouses are essential components of any supply chain. In a warehouse items are handled in order to level out the variability and imbalances of the material flow caused by factors such as seasonality in demand, production scheduling, transportation, and consolidation of items. Inventories in warehouses are capital intensive assets that require storage areas, handling equipment, and information systems. In addition, warehouse operations are repetitive, labor intensive activities. In addition to warehousing, logistics is the strategic management of movement, storage, and information relating to material, parts and finished goods in supply chains, through the stages of procurement, work-in-process, and final distribution. Its overall goal is to contribute to maximum current and future profitability through the cost-effective fulfilment of customer orders. (Cooper, ed, 1994).

Warehousing operations and processes around storage activity.

Warehouse is a central element of the logistics system. The way it is organized has an influence on all other processes in the company. There are several basic principles of warehousing:
• Maximum possible mechanization and automation of operations
• Optimal use of space and capacity of storage facilities;
• Organization through “continuous-flow” of goods
• Planned system of storage operations
• Safety of goods. It is obvious that warehouses are not just rooms for the storage of goods; they are transport and storage facilities, they process three types of flows – input, output and internal.
Warehouses contribute to the transformation of cargo flows by changing the parameters of accepted and issued consignments in size, composition, physical characteristics of the incoming goods, and time spent. The specifics of the warehouse system provide the presence of reserves considered as an essential factor in ensuring a certain level of customer service. In turn, consumers believe causes the formation of reserves to ensure the continuity of the production process, the pursuit of smooth flow and provide fast shipment at the unexpected demand of various products. Logistics tends to minimization of inventory, so warehouses provide lifting mechanisms and special devices for the storage of materials, in order to fulfil desires of logistics network. (Lange in & Riopel, 2005)
The part of the logistics system in the supply chain Warehouse as part of the logistics system operates on the same principles as the system overall. Goals and objectives of the logistics system determine goals and objectives of the warehouse. The main conditions for the effective functioning of a warehouse as part of the bigger system, coming from the general principles of its design, can be considered as following:
Storage should not be considered separately, but only as part of the logistics system. The effectiveness of the warehouse must serve the interests of the efficient functioning of the system.
It is necessary to take into account the interaction and relationships of the warehouse at the level of the entire external environment.
It is necessary to link technical and technological possibilities of the material flow passing through the warehouse, with the external transport, as well as with direct suppliers and buyers.
Reduction of warehouse handling of goods costs should not lead to a lowering of the level of customer service.
Technical and technological solutions in the warehouse should not come from trends but should be efficient and cost-effective.
To reduce labour costs associated with the document, it is advisable to provide a unified approach to documentation between all participants of the system.
To automate the flow of information in the system and in a warehouse in particular, it is crucial to implement bar coding of goods in manufacturing plants.

Why to focus on warehousingThe basic principles used to build a distribution logistics system:
Planning and management of material flow in terms of independence and interdependence of all elements in the production process.
Control of product distribution processes, from the planning of production volumes to the delivery of products to final customers.
Inventory Management to satisfy consumer needs.
Description of logistics inventory management processes, distribution of products and their integration into the overall system of processes going on in the company.
Analysis of logistics costs throughout the supply chain.
Development of logistics services.
When developing a model of the distribution logistics enterprises use a systematic approach. It is done because the main objective of the logistics system is managing the material flow, starting with order and ending with the delivery to the customer. The main functions of distribution logistics are:
• Planning, organizing, and management of freight moves during the production process and after the product are ready for the customer;
• Inventory management;
• On time processing of customer orders;
• Assembly, packaging, and fulfilment of other logistics operations preparing the final products for distribution;
• Proper arrangement of shipment;
• Delivery management and control over the execution of transportation process.
Functions of planning and control of material flow in the company are executed by the logistics department. The main task is to serve as a bridge between the sales department and production units of the enterprise, to ensure timely and full implementation of customer applications.
Objectives to be achieved by logistics department:
• Merge of production planning and distribution planning processes for effective inventory management
• Creation of common order processing system that allows good order handling within the company
• Development of a unified transport and warehouse system to ensure on time delivery of products to the consumer
• Optimization of product distribution schemes, to reduce time and costs of customer order implementation
Development of optimal warehousing system with suitable penetration points. According to the stated objectives logistics department should focus on the following tasks:
• Specification of needs for transportation and warehousing
• Optimization of inventory management system
• Development of order receiving and order processing steps
• Decisions on appropriate shipment for goods sold
• Delivery optimization and transport control
• Development of optimal warehousing management
• Reduction of overall logistics costs
• Improvement of logistics services quality.
Separation of structural business units is done due to differences in their functions performed. One of the main tasks of the logistics department is to create an integrated system of effective regulation and control of material and information flows, providing high-quality delivery of final products
Warehouse optimisation challenges.Most of the challenges that arise in warehouse optimization are related to errors, inefficiency, and lack of transparency. Many warehouse managers correct these challenges with warehouse management systems, automated material handling systems, barcoding, and automated data collection.

Inventory accuracy – Companies often do not know what they have in stock and have too little visibility into their warehouses when they lack an automated system
Inventory location – Without accurate insight into inventory location, pickers cannot work efficiently, which results in slower loading processes and backups in dock scheduling
Space utilization and warehouse layout – If storage systems and warehouse racking is not optimized, space required to house inventory and labour needed inside the warehouse increase
Redundant processes – Redundant processes and multiple touches hurt a company’s bottom line and are inefficient
Picking optimization – Too many warehouses lack common routes for picking items for shipment because their manual processes are inefficient
Lean warehousingWarehouse as part of the supply chain can generate both good and waste for the company. Waste generated affects operations and results in cost increase. To prevent having waste in time, money, staff or area utilization it is wise to use lean principle for the warehousing. In the manufacturing process, if a defective item is produced, it merely ends up as a waste and thrown into the scrap which is disposed of afterward. To generate scrap as good as ordering things which will remain in the warehouse until they are disposed of. These also occupy a lot of space in the warehouse which cannot be utilized for some other operations therefore incurring holding costs (Emmett, S. (2005)) Total Quality Management (TQM) is the approach in the management of an organization, aimed at quality, which is based on the participation of all its members, staff in all departments and at all levels of the organization and aims to achieve a long term success through customer satisfaction requirements. The goal of TQM is achieving long-term success by maximizing customer, employee and society satisfaction. TQM objectives is constant quality improvement through regular analysis of the results and adjusting operations, the complete absence of defects and non-production costs, the implementation of planned just in time. The tactics of TQM is preventing the causes of defects, the involvement of all employees in the efforts to improve quality, active strategic management, continuous improvement of the quality of products and processes, the use of scientific approaches to solving problems and regular self-esteem. Methodical tools of TQM tools for data collection, data presentation tools statistical treatment, theory of general management, motivation theory and the psychology of interpersonal relations.

All the main principles of Lean include reduction of waste and it is an obvious tool for the improvement. Waste can be found in various aspects including excessive stock, unnecessary processes, overproduction, stuff wastage, which are stress and low motivation. The task of management is to find areas of improvement and take actions. The worst waste point is usually overproduction, which are excessive movements in this particular case since it leads to high storage costs, too much work in process and not enough cash. Overall it is quite obvious that any waste should be reduced or even eliminated if possible, so company works for value creation of a particular customer order, without exceeding expectations and amount
Impact of the warehousing to the financial state of the companyTo identify possible ways of logistics costs reduction, efficiency of logistics services should be evaluated and analysed. Logistics costs can have a large share of the price decision of the goods sold. However, it should be understood that a high level of logistics strengthens the relationship between the enterprise and its customers. It may be a reason of attraction for new customers and, as a consequence leads to an increase in sales and earnings. Therefore, during the analysis of the overall performance of the logistics system, it is found that not only cost of processes is driving factor. There is a whole range of indicators to be precisely studied while assessing the state of logistics department and its activities in the company.
Warehouse space planningPlanning of a storage space is based on the type of storage facility, and the existing design .it can take the form of open areas, semi-closed, or be completely closed, like full size building. Closed storage facility is a standalone building with ? warehouse inside and this type of storage facility is the most common. Warehouse building may have one or more floors. Single floor, depending on the height can be conventional, high-rise and mixed. One of the main tasks when developing the system of storage is to maximize the use of the entire area of the warehouse and its total volume. During the construction of the building features of the warehouse are taken into account, which directly affect its capacity. In modern warehousing one-floor warehouses are preferred, and the increased cost of land is taken into account.
Total costs in the high-rise warehouse several times less than the cost of storage with the same volume, but less in height. If the height of the storage load is approaching the height of the warehouse, the entire volume of the room used most effectively. A large area of the warehouse makes it easier and more rational to place storage equipment and technical means used. This means that there are opportunities to improve the level of mechanization. To create optimal conditions for the work of the handling machines and mechanisms warehouse space without too much separated, closed areas, and with a minimum number of columns are desired. But during the planning of storage space it is required to allocate storage or separate areas intended for the implementation of the basic operations of the warehouse process.
Shelves Warehouse is not just a big free are under the roof in most of the cases it is separated according to the tasks. For good storage conditions, accessibility and safety warehouses are commonly equipped with various shelves and aisles. As with most of the warehousing equipment decision of shelves to be used is based on needs. To ensure quick product availability having a system of aisles and cross aisles that make it easier to move around the warehouse is important. Long and continuous aisles can make it difficult in getting from one part of the warehouse to another. However, cross aisles that allow access to the main aisles, help create a grid that is more efficient and easier to navigate (David E. Mulcahy 1993.) Warehousing is intended to ensure the acceptance of materials with the definition of quality and quantity positioning and rational distribution of materials considering their physicochemical properties; mechanization of loading and unloading; improvement of equipment storage materials, structures and products, minimizing material losses during the process of storage, organizing routes of material flow and recording materials.
In order to visualize the amount of material to be stored in the warehouse, it was decided to use easily adjustable shelves, as they allow tracking the movement and availability of the material, as well as equal flow or possible missing of the material.
Machinery For movements of low weight products in the warehouse pallet trucks is used.
The most common type of warehouse equipment is forklifts and manual pallet trucks. They are mostly used for the transportation of goods on pallets. This truck can easily carry goods to 3 tons with the assistance of only one person. In small stores electric pallet truck are often used. They may have a step for the driver or not. These trucks have a top speed of 15 km/h but usually operate at 5-7 km/hour. The truck can move loads of up to 2.5 tonnes and lift it to a height of 4.5 meters. Common warehouse machinery is loader, also known as stacker. Stacker has small wheels and, in contrast to the truck, it does not have a weighted rear. Due to this, the size is significantly reduced, which allows the machine to operate in fairly narrow aisles. This type of technology is able to move loads of up to a height of 12 m. Often there are stackers with elevating cabin, where the operator is. They could also be equipped with camera and monitor, where driver can keep track of all the actions. The pallet truck is more likely to be inside the storage equipment, and the forklift is more suitable for outdoor work. To counterbalance it is equipped with a weighted back, and has a lift mast with forks. The truck can also leave the warehouse, but their movements are limited by various kinds of bumps in the road. Machines running on the territory of open warehouses are equipped with winter version cab, heater and wipers. In the summer period the doors removed, enabling users to work in hot weather.
Bar codes going to the grocery store we always see barcode scanners while paying, but this application is widely used for the warehousing also, to keep track of the inventory. Using bar codes in warehousing operations makes it possible to reduce labour and improve efficiency in as many areas of the fulfilment process as possible. Bar codes are used to ensure that products are put away in the right bin location and orders are filled properly. Bar coded tags can be used for both products and locations in the warehousing facility, while tags are attached to the both of them. Bar code technology eliminates hard-to-account or “floating” material in a warehouse. Floating material occurs in facilities that only use paper-based documents. With bar coding, it is easy to pinpoint where any quantity of any item is located at any time. (Jon Schreibfeder, 2010)
LayoutThe work of the layout design of the warehouse is a key component of further optimization tasks and has a significant impact on order-picking and traveling distances in the warehouse. A poor layout design can have tremendous impact on the travel time within a warehouse. Things such as narrow-aisle-like, which increases the space utilization with minimal costs, but it, can lead to higher operational costs there are many types of warehouse equipment, especially the equipment which should reduce labour cost and increase its utilization. Common storage models cover pallet racks, cartoon flow racks for high-volume picking, and shelving for lower-volume picking. All this equipment is standardized according to the dimensions, but the standardization is mostly only for a specific continent. While pallet manipulation is demanded in all types of warehouses, conveyors are not used everywhere. Conveyors divide the warehouse into zones, move a material through a given path, and also restricts the movement of workers and saves their energy. With the deployment of conveyors the sortation system is quite often installed. Sortation is mostly based on some scanning technology of Bar-Codes, RFID chips, Magnetic strips or Machine vision.

Inventory layoutWarehouse should be designed so that inventory does not need to be moved more than once. Extra movements do not make sense in most of the cases, there are exceptions due to particular needed, but the less is number of product movements, the better. Organization within a warehouse facility is fundamental for smooth operation. The more time staff spends locating something, or finding a place to put something, the more it costs the company. In order to get everything done in the minimal amount of time, the organization must be a priority. (David E. Mulcahy 1993.) In a well-organized warehouse material and products can be picked up and put away quickly and easily. A good floor plan of a facility should present an overview of a warehouse, indicating most important tasks to be performed. These tasks are then subdivided into sub-activities to be carried out. Commonly used and necessary resources are allocated to each activity in the most suitable place.

Inventory Control
Because nearly every package features some sort of the barcode, company can use the technology to maintain tight and accurate control over inventory. Warehouse can scan barcodes on packages as they enter and exit the facility to maintain a record of every package at the warehouse. Later when ? particular piece of inventory is required staff can locate it for picking and packing with ? computer program in ? moment. (Cooper, ed, 1994) Poor inventory control and neglecting of supporting technologies can be ? reason of low productivity, creation of inventory control issues, mistakes in shipping and undesired safety risks.
Bar codes going to the grocery store we always see barcode scanners while paying, but this application is widely used for the warehousing also, to keep track of the inventory. Using bar codes in warehousing operations makes it possible to reduce labour and improve efficiency in as many areas of the fulfilment process as possible. Bar codes are used to ensure that products are put away in the right bin location and orders are filled properly. Bar coded tags can be used for both products and locations in the warehousing facility, while tags are attached to the both of them. Bar code technology eliminates hard-to-account or “floating” material in a warehouse. Floating material occurs in facilities that only use paper-based documents. With bar coding, it is easy to pinpoint where any quantity of any item is located at any time. (Jon Schreibfeder, 2010)
Technology and equipment for barcoding a bar code is a set of systems for automatic identification of goods, which also include digital media, magnetic, radio frequency, acoustic and visual identification (magnetic card, tag). Its main advantage over other means of automatic identification is the ability to quickly transmit information about the product to the electronic communication system. The bar code is an effective mean of telecommunication. By bar coding technology meant a set of tools and automated methods for collecting, recording, storing, processing, transmission and use of the information encoded by a barcode. Bar coding technology is a technology based on the use of the latest achievements of optoelectronic technology, a fundamentally new software and hardware, computer technology, automation, information systems and communication networks of all kinds. Today bar coding technologies cover all spheres of human activity, they are a universal means of business cooperation with all participants in the global economic system.
The technology in general comprises the following steps:
• Object identification by giving it a digital, alphabetic or alphanumeric code
• Representation of the code in the form of bars with a certain symbolism
• Application of the bar code on physical media (product, packaging, labels, documents)
• Reading bar codes
• Changing of bar codes into machine representation letters, numeric or alphanumeric data and transfer them to the computer.
Performing these operations may be carried out on the basis of standard rules, regulations and requirements to ensure their full compatibility. Usually, while company decides to implement the technology, together with purchasing the know-how and equipment staff is trained. The implementation of bar-coding is performed with the use of many different devices that can be divided into four groups: for the application of the barcode; for reading barcodes; for the collection and storage of data; for data transmission. This division is conditional, since many devices provide multiple operations. A striking example of such devices are electronic shop scales, which provide weighting explanation, printing labels coated with a bar code, keyboard input, data accumulation and transfer them over the network. To use the technical means used in bar-code technology some supplies are needed. These supplies are label paper of various sizes for printers, ink ribbon and labels for thermal printing, and self-adhesive labels in various formats. The quality of consumables depends on the quality of the applied bar codes, their reliability and durability.

Typical warehousing operationsOperation decisions define the material flow in a warehouse, which is elaborated in the following. First, items arrive and received in the facility. Then the item is either forwarded to the shipping area or allocated in a storage location. The best storage location is close to a dock so that the cost of (i) unloading the items at a dock and transporting them to the storage area and (ii) accessing items and transferring them to a dock for loading is minimized. As a result, items compete for storage locations that are closest to the docks (Ahuja et al., 1993). When an order is received, the picker retrieves the ordered items. Note that the retrieval can be triggered either by an order for item replenishment in the forward storage area or by a customer order. To ensure efficiency, the picker should follow a route that minimizes the cost of the retrieval. Order consolidation can be considered to facilitate an efficient picking. The sorting is necessary if items have to be clustered by customer order after the completion of the picking (De Koster et al., 2007). Finally, items are loaded on the carriers and shipped. The main stages in this process are: receiving, storage, order picking, and shipping

Receiving is the first warehousing operation as this process starts by the notification when goods arrive to be offloaded. The process begins with unloading, counting, identifying, quality control and acceptance of the goods. This is basic rules which is applied by any logistics company. When the goods are accepted, the receipt is issued. The acceptance depends on the delivery status – the delivery date, the quality of delivery, the planned schedule which should also minimize a truck waiting time..
Storing operations consist of the distribution of goods to storage areas (transportation to a storage place or cross docking, which is the transportation directly to the shipping department), identification (if it was not done during acceptance), assignment of the storage bin and put-away which is a simple determination of a storage bin concerning the physical dimensions and the weight of goods; storage monitoring is also a part of management systems – to know which goods are available and where.

Put-away is a process which requires a strictly determined storage location. This is very important, because the information system has to know all the time what storage locations are available, what is the location of a specific type of goods and where each particular pallet is stored. This information is also used for an efficient design of a pick-list
Picking (also called Retrieval) is a process which covers lots of issues. First, a pick-list is given to an employee. The picking takes about 55% of the warehouse operating costs and consists of: Traveling Searching Extracting and Paperwork. Picking can be of two types, homogeneous and heterogeneous. Homogeneous picking is quite simple; the picker operates simply with a whole pallet. In heterogeneous picking the picker is told where and what to pick, in what quantity
And units. Due to customer needs, the heterogeneous picking is logically more frequent. The disadvantage of heterogeneous picking is that a smaller unit means higher costs. The pick-list
Is still quite often a sheet of paper, but in some warehouses the pickers use the smart embedded devices such as the Bar-Code Reader, Personal Digital Assistant etc.

The planning of the picking process is based on orders and supported by picker routing methods. Picking of goods can be done by many ways. The special case of picking is order-picking which a consolidation of a customized quantity of one is or more articles related to a specific order. Sharing of order-picking is also a quite frequent way of picking. The sharing of an order is much related to batching, grouping, and zoning. The order-picking was also designed by algorithm based on Traveling Salesman Problem (TSP) heuristics, which performs better for multiple picking than routing methods. In 40 it was discovered that appropriate sequencing of picking is one of the crucial factors to achieve a high efficiency of picking. Since the traveling is the most time consuming part of the process, the scientists paid attention mostly to this part of the problem.

Checking of an order is a process that checks if the order is complete and accurate. Packing ensures that the picked and consolidated goods, also checked for the completeness of an order, are packed for transportation and given to the shipping department. Packing can also be ensured by an autonomous packing department in the warehouse, and then the consolidation and checking are usually part of this department. Shipping ensures that the packed consignment is provided by transport destinations, assigned to the truck and optimally loaded on the truck. The shipping process is ensured by the shipping department that can also secure three preceding jobs.
Cross-docking is a process which minimizes the storage and order-picking time while the receiving and shipping operations are still allowed to a full extent. The basic idea is to transfer goods directly from the incoming to the outgoing department without any other warehouse operations in between the analytical models for pre-distribution cross-docking (on the side of a manufacturing company) and post-distribution cross-docking (on the side of warehousing company) proposed in.

Warehousing costs being part of supply chain warehousing brings costs to the company’s financial reports. General overhead cost this cost involves the cost of used space per cubic meter and supporting infrastructure. Security devices and safety equipment also belong here. Delivery cost This cost includes the cost of transportation of the product by some outside company. It includes cost of fuel, delivery truck and insurance. Labour cost This is the cost, which involves the cost of the labor operating in the facility on ? daily basis performing both physical and administrative activities. Processing costs These are the costs of such activities as receiving, storing, picking, packaging and shipping. Some costs from the assembly activities could be involved here. Storage costs These are the costs needed to store and handle the products and they are also known as inventory handling costs. (Ezinearticles.com)

StorageStorage is the process of allocating items in the warehouse. Since warehouse storage locations and pickers are generally scarce resources, therefore high allocation efficiency is required in terms of utilization of both picker effort and storage capacity. Storage includes the following interrelated activities: sequencing and consolidation, storage location assignment, and shuffling. 8 Item sequencing determines the order, according to which items are sorted to be processed, e.g., allocated or shuffled. Item sequencing is typically based on a first come, first served or on an earliest due date order. However, items can be consolidated (or clustered) according to decisions and restrictions determining whether different items can be placed in the same compartment. A dedicated compartment accommodates only one item. While in a mixed compartment, more items can be allocated. E.g., a stored pallet may consist of several different products, or a rack location may cover several slots and a product can be assigned to each slot. Item consolidation may yield both improved storage utilization and increased complexity (Anken et al., 2011). Steudel (1979) presents a heuristic for the pallet loading problem, where units of a single product are placed on a pallet forming a layout that minimizes the unused area. The problem is formulated as a two-dimensional cutting stock problem, where the original area is partitioned into sub-areas. Tsai et al. (1988) present stylized model with an LP formulation for the two dimensional palletizing problem with products of different size. However, item consolidation is frequently limited by compliance restrictions among products or between product and location, e.g., product-to-product restriction is common in industries where products can pollute or damage each other (Heskett, 1964). The storage location assignment policy determines where a given item is stored. The main difference between the product allocation and the storage location assignment problems is that the former considers the reserve and forward storage areas and product volumes, while latter focuses typically on multiple locations and individual items. Storage location assignment policies can be classified into two main groups, namely, dedicated and shared policies. Dedicated storage location assignment commits compartments to products during the planning horizon. This policy requires a high storage capacity to store the maximum inventory of each product (Tompkins et al., 2010). However, once the products and the locations are matched, only the quantity has to be updated at every transaction, therefore this policy improves the transparency and the picker’s familiarity with the locations of the different products. Shared storage location assignment allows the compartment to accommodate different products; therefore the location 9 may be potential for any product upon necessary capacity and product-location compliance. This policy can be computationally intensive. However, the main advantage of it is that the storage capacity required must only fulfil the peak inventory level of all products during the planning horizon (Tompkins et al., 2010). That is, the storage capacity requirement with the shared storage location assignment is lower

Warehouse optimization strategies.Reduce time wasted travelling-depending on the size of the operation, a significant portion of an order pickers time is spent travelling between picks deploy methods that reduce travel time, condense the pick phase and allow staff to work smarter. Potential solution such as flow racks, optimised flow paths and dynamic slotting can be used to reduce the travel time and ensure a smooth efficient process.

Move orders to zones- consider methods that arrange the flow of materials, for faster and more efficient assembly and consolidation. Send order containers only to zones where the picking activity is required. Potential solutions such as zone route conveyor networks and picking carts can be applied.

Batch orders and sort- by grouping and concurrently picking SKU’s for multiple orders the pickers become more productive. The order pickers don’t need to visit the same location over and over again therefore pick multiple SKU in one pass and sort the orders accordingly. Potential solutions such as pick carts using the correct route and sort.

Eliminate travel, split case section and replenishment- instead of the pickers going out into the warehouse to locate and pick split case item, and consider systems that bring the inventory to the picker, who remains in one location. Potential solutions such as goods to person pick stations supported with automated staging system for the inventory.

Eli mate travel, full case selection and inventory- as an alternate to pickers going out into the warehouse to locate and pick cases, consider systems that bring the cases directly to the palletizer. Release cases in the best sequence to build pallets. Potential solutions such as a buffer system with semi-automated palletizing.

Buffering and sequencing- as portions of customer picked, the items or cases should be consolidated onto a buffer storage system as a method of optimising the process, furthermore they may be a need to organise the content of each order into sequence. Potential solution such as automated staging can be applied.

Free picking- by making the SKU you don’t pick become the SKU that you pick, you can silently pick one and get one for free. For example, transfer 5 cases from one pallet to create an order, thereby giving another order with the remaining cases therefore a negative picking software solution can be applied to the problem t hand.

Layer pick- optimises picking activity with layer picking, a system for the automated handling of whole layers from pallets. Get more order assembly faster than with labours therefore can make use of automated layer picking robots.

Go real time – making sure that paper is eliminated and operate with a real time system. In this way you will be able to gain more visibility, obtain real time operational status, and monitor labour productivity. Potential solutions such as warehouse control systems, dash boards and voice and light directed activities. ConclusionThe optimal operation of a warehouse is achieved when each customer is satisfied completely according to their order, in due time and when all warehouse and logistic processes are done in the shortest possible time, with minimal cost and optimal utilization of resources under dynamically changing conditions. This gives us great ideas of warehousing optimization, but only some of them are really applied in real-world warehouses and used. The problem of warehouse layout lies mainly in the effective use of space so the typical rectangular warehouses with narrow-aisles are most utilized. There is also a critical pressure on effective
Utilization of equipment and labour and its minimal quantity in the warehouse, which can also save the costs significantly. We do not take into account the real conditions as the blocking and congestion are, but there are dozens of workers working simultaneously in the real warehouse or multiple block warehouse and the congestion or even a collision must be taken into account in everyday operation. The result of this review of warehouse optimization is that the real-world conditions should be applied instead of their relaxation for the sake of application. The work can be shared by many more employees than two, which was mostly investigated in the papers.
The idea of how to apply this optimization is to utilize the shop scheduling techniques combined with Vehicle Routing Problems solving techniques. The shop scheduling techniques can be employed when the work is scheduled in the warehouse, even when the work must
By scheduled dynamically. The machines in shop scheduling problem are represented in the warehouse by any equipment needed for each job, such as trucks driven by workers (forklift
Hand pallet truck, fork-lift low truck, fork-lift high truck), checking units (workers), packing units (workers with special equipment) and others. The operations in the warehouse, called jobs in the scheduling, represent a single assignment given to the worker by operational manager e.g. The employee has to unload a pallet from a lorry, go through the warehouse and store it on a shelf. The job is composed of sub-operations called tasks. A task represents a single operation of job, e.g. Receiving, unloading, put-away, moving and storing etc. The tasks can be done by several workers. So, the job is spread in few machines working in sequence in the language of shop scheduling problems. Transports, moving and routing of trucks in warehouse could be inspired by Automated Guided Vehicles (AGV) techniques transformed from open space Vehicle Routing Problem (VRP) techniques to warehouse environment. Application of these methods could further reduce the blocking and congestions as well as collisions of trucks.

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Designed on the basis of dozens optimization studies
Modern logistic warehouses and distributions centres are
Designed on the basis of dozens optimization studies
Modern logistic warehouses and distributions centres are
Designed on the basis of dozens optimization studies
Modern logistic warehouses and distributions centres are
Designed on the basis of dozens optimization studies
Modern logistic warehouses and distributions centres are
Designed on the basis of dozens optimization studies
Modern logistic warehouses and distributions centres are
Designed on the basis of dozens optimization studies
Modern logistic warehouses and distributions centres are
Designed on the basis of dozens optimization studies
Modern logistic warehouses and distributions centres are
Designed on the basis of dozens optimization studi