Warehouse Layout and Management Overview
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ScribdTranslationsWarehouse Layout and Management Overview
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ScribdTranslationsLOGISTICS MANAGEMENT OF THE COMPANY II
UNIT I
STORAGE
Definition of Warehouse
A warehouse is basically a space, area, building, or facility where goods are usually stored.
merchandise, but at the same time it can perform other functions, such as conditioning.
of specific products, make replacements (both for maintenance and for stock)
technique), etc., more deeply we would say that the term warehouse is derived from the Arabic (almaizan)
It is a house or building where goods of any kind are stored.
They are the places where different types of merchandise are stored. They are managed through
an inventory policy. This function controls and maintains all items
inventory. When developing the storage strategy, it is necessary to define in a coordinated manner the
warehouse management system and storage model.
Definition of Storage
The concept of storage has been changing and expanding its scope of competence. The warehouse
Yes, today, a service and support unit in the organizational and functional structure of a company.
commercial or industrial, with well-defined purposes of custody, control and supply of materials
and products. Currently, what was previously characterized as a space within the company
destined for the exclusive use of merchandise stacking, is a key structure that provides elements
physical and functional elements capable of generating added value.
What is warehouse management?
Warehouse management can be defined as the logistical process responsible for receiving, the
storage and movement within the same warehouse to the point of consumption of any
logistics unit, as well as the processing of information from the data generated in each of the
processes.
Warehouse management aims to optimize a functional logistics area that acts
in two stages of flow such as: supply and physical distribution, thus constituting the
management of one of the most important activities for the functioning of the chain
supply.
The general objective of warehouse management is to ensure continuous and timely supply.
of the materials and means of production required to ensure services in a timely manner
uninterrupted, so that the production flow of an organization is greatly
measure conditioned by the rhythm of the warehouse.
Warehouse management is located on the Logistics Process Map between Inventory Management and the
Order Management and Distribution. In this way, the area of responsibility of the warehouses.
born in the reception of the physical unit in its own facilities and extends until the
maintenance of it in the best conditions for its subsequent treatment.
Source: [Link]
Warehouse location
The location of warehouses is approached from a dual perspective:
✔ An overview of the market: To geographically limit to a broad area, and✔ A local vision
from the market: That considers particular aspects of the restricted areas in the overall vision
Size of warehouses
A warehouse must be sized mainly based on the products to be stored.
size, specific characteristics and number of references) and demand (especially in sectors
affected by the seasonality of demand). But besides these, other factors come into play that
must be considered when sizing a warehouse. The factors to take into account
The factors for calculating the size of a warehouse are:
✔ Products to be stored (quantity and sizes)
✔ Market demand
✔ Customer Service Levels
✔ Handling and storage systems to be used
✔ Production times
✔ Economies of scale
✔ Inventory layout
✔ Requirements for corridors
✔ Necessary offices
It is important to consider the three dimensions to determine the capacity of the warehouse, it is
to determine the magnitude in cubic meters. In the Design, Size and Layout module
we will mathematically address the aspect known as dimensioning of warehouses
wineries.
• Design and layout of warehouses: Once the types of warehouses and their locations have been determined
defined, efforts should be made to achieve the most efficient and effective flow of materials within the
Warehouses. In this sense, an effective design optimizes the activities of a warehouse.
Movement
It is the operational subprocess of the warehouse related to the transfer of materials/products from
from one area to another within the same warehouse or from the reception area to the storage location.
The activity of physically moving goods can be achieved by different means, using a
a wide variety of material handling equipment. The type of tools used depends on
a series of factors such as:
✔ Volume of the warehouse
✔ Volume of the goods
✔ Life of goods
✔ Cost of the equipment versus the purpose
✔ Number of special manipulations and required expeditions
✔ Distance of movements
From the perspective of the characteristics of the goods, the incoming and outgoing flows of the warehouse.
The goods are varied, such as:
• Last In – First Out (LIFO): the last merchandise that enters the warehouse is the first to leave for
expedition. This mode is frequently used in fresh products.
First In – First Out (FIFO): the first goods that enter the warehouse are the first to be removed.
warehouse. It is the most used modality to avoid obsolescence.
First Expired – First Out (FEFO): the one with the nearest expiration date is the first to go out.
Information
While the main function of Warehouse Management is efficiency and effectiveness in the physical flow, its
achievement is dependent on the flow of information, this is a transversal axis of the processes of
logistics management, and warehouse management are no exception. Their optimization must be, therefore,
first order objective in Warehouse Management. Its scope extends to all processes
previously described – Planning and organization, reception, storage and movement – and are
develops in parallel with them along three paths:
✔ Information for management.
✔ Identification of locations.
✔ Identification and traceability of goods.
Included in the management information are:
✔ Warehouse configuration: facilities, layout...
✔ Data related to the available resources
✔ Technical data of the stored goods
✔ Activity reports for Management
✔ Evolution of indicators