6/1/2014 ieng 471 facilities planning 1 ieng 471 - lecture 17 introduction to order profiling major...
TRANSCRIPT
04/18/23 IENG 471 Facilities Planning 1
IENG 471 - Lecture 17
Introduction to Order Profiling
Major portion courtesy of
Dale T. Masel, Ohio University and the
2009 Material Handling Teacher’s Institute
Order Profile
Definition: Order ProfilingA summary of the important characteristics of
the orders that a warehouse needs to fill
Examples of important characteristicsDemand for items What’s popular?Quantities ordered What’s the workload?Unit loads What equipment is needed?
Importance of Order Profiling
Provides information about our population, which is what we usually need when we design anythingWe don’t design cars for individual driversWe don’t design clothes for individual wearersWe don’t design warehouses for individual orders
Profile gives us insight on the characteristics of the individuals that comprise the population
Order Profiling as Art & Science
ArtDetermining which
characteristics are relevant for a particular situation
Turning the characteristics of the order population into an order fulfillment system
Requires expertise in warehouse design
ScienceConverting available
data into data required for a profile
Summarizing the order population from the available data
Focus of this presentation
Where to Start: Data Requirements
SKUsWhat’s being stored, and possibly how it is
being contained
InventoryHow much is being stored
OrdersWhat’s being processed, andHow much is being processed
Why bother profiling?
Trying to sort through data can be overwhelmingProfiles are ways to organize the data
Don’t want to just rely on averagesDemand would exceed capacity 50% of the time
Value of profiling is that it provides a quantitative description of what a distribution center needs to be designed to handle
Example of a Typical Order
Order#8
# of Lines SKU # Qty
6 1481 15
1979 12
2777 6
3927 9
3979 7
2840 9
A month’s worth of orders...
Order#1 # of Lines
SKU # Qty
3 1481 6 1979 24 1524 18
Order#2 # of Lines
SKU # Qty
2 1481 3 3979 6
Order#4 # of Lines
SKU # Qty
2 1481 18 2777 15
Order#3 # of Lines
SKU # Qty
2 1481 11 2840 4
Order#5 # of Lines
SKU # Qty
6 1481 12
1979 12
1955 6
1972 12 1901 6 1524 6
Order#6 # of Lines SKU # Qty
1 2840 3Order#7
# of Lines
SKU # Qty
3 2777 6 2705 27 2840 6
Order#8 # of Lines
SKU # Qty
6 1481 15 1979 12 2777 6
3927 9
3979 7
2840 9
Order#9 # of Lines
SKU # Qty
1 2705 9Order#10 # of Lines SKU # Qty
1 2839 9Order#11 # of Lines SKU # Qty
5 1481 8 2840 18 3906 18 3079 15 5422 18
Order#12
# of Lines
SKU # Qty
5 1524 13 2840 34 3927 12 1481 3 6079 18
Order#13
# of Lines
SKU # Qty
2 2840 24 1481 6
Order#25
# of Lines
SKU # Qty
3 3122 15 5422 6 6079 12 4817 24 6717 12
Order#15
# of Lines
SKU # Qty
4 1972 13 1524 18 1481 9 1956 36
Order#16
# of Lines
SKU # Qty
1 1979 12
Order#17 # of Lines SKU # Qty
4 1979 11 3906 13 1481 15 2840 14
Order#18
# of Lines
SKU # Qty
4 1979 9 6079 18 1481 17 5100 13
Order#19
# of Lines
SKU # Qty
4 1901 12 1481 6 4800 24 5100 6
Order#20
# of Lines
SKU # Qty
2 2705 18 2840 12
Order#21
# of Lines
SKU # Qty
4 1972 6 1524 10 1481 9 1979 18
Order#22
# of Lines
SKU # Qty
1 1481 12
Order#23
# of Lines
SKU # Qty
3 1901 24 5340 12 1481 18
Order#24
# of Lines
SKU # Qty
2 3122 18 2811 18
Order#26
# of Lines
SKU # Qty
3 3927 18 5422 12 6717 24
Order#27
# of Lines
SKU # Qty
3 4060 12 5422 24 6079 12
Order#28
# of Lines
SKU # Qty
3 1481 16 1979 18 1956 12
Order#29
# of Lines
SKU # Qty
4 1981 24 1955 12 1481 12 1524 6
Order#30
# of Lines
SKU # Qty
5 1901 13 1481 14 1524 7 1972 7 1955 15
Order#31
# of Lines
SKU # Qty
2 2839 3 1481 6
Order#32
# of Lines
SKU # Qty
2 3906 17 1481 9
Profiling gives us a way to make sense out of all this data
Examples of Order Profiles
Item Family ProfileOrder quantity Unit LoadLines per orderCube per order
Item Family Profile
Want to find families of SKUsFamily = group of SKUs that can completely
fill a large number of orders
Items in a family are stored together and not spread over facilityReduces travel for pickers to get all items
for the order
Orders by Item FamilyOrder#1
# of Lines
SKU # Qty
3 1481 6 1979 24 1524 18
Order#5
# of Lines
SKU # Qty
6 1481 12 1979 12 1955 6 1972 12 1901 6 1524 6
Order#15
# of Lines
SKU # Qty
4 1972 13 1524 18 1481 9 1956 36
Order#21
# of Lines
SKU # Qty
4 1972 6 1524 10 1481 9 1979 18
Order#29
# of Lines
SKU # Qty
4 1981 24 1955 12 1481 12 1524 6
Order#22
# of Lines
SKU # Qty
1 1481 12
Order#28
# of Lines
SKU # Qty
3 1481 16 1979 18 1956 12
Order#30
# of Lines
SKU # Qty
5 1901 13 1481 14 1524 7 1972 7 1955 15
Family – A0000-2500
Order#6
# of Lines
SKU # Qty
1 2840 3
Order#7
# of Lines
SKU # Qty
3 2777 6 2705 27 2840 6
Order#9
# of Lines
SKU # Qty
1 2705 9
Order#20
# of Lines
SKU # Qty
2 2705 18 2840 12
Order#24
# of Lines
SKU # Qty
2 3122 18 2811 18
Order#27
# of Lines
SKU # Qty
3 4060 12 5422 24 6079 12
Family – B2501-4000
Family – C4001-7000
Order#2
# of Lines
SKU # Qty
2 1481 3 3979 6
Order#3
# of Lines
SKU # Qty
2 1481 11 2840 4
Order#4
# of Lines
SKU # Qty
2 1481 18 2777 15
Order#8
# of Lines
SKU # Qty
6 1481 15 1979 12 2777 6 3927 9 3979 7 2840 9
Order#13
# of Lines
SKU # Qty
2 2840 24 1481 6
Order#16
# of Lines
SKU # Qty
1 1979 12
Order#17
# of Lines
SKU # Qty
4 1979 11 3906 13 1481 15 2840 14
Order#31
# of Lines
SKU # Qty
2 2839 3 1481 6
Order#32
# of Lines
SKU # Qty
2 3906 17 1481 9
Order#14
# of Lines
SKU # Qty
5 1972 18 1481 12 6079 12 4817 24 6717 12
Order#18
# of Lines
SKU # Qty
4 1979 9 6079 18 1481 17 5100 13
Order#19
# of Lines
SKU # Qty
4 1901 12 1481 6 4800 24 5100 6
Order#23
# of Lines
SKU # Qty
3 1901 24 5340 12 1481 18
Order#10
# of Lines
SKU # Qty
1 2839 9
Order#25
# of Lines
SKU # Qty
3 3122 15 5422 6 6079 12
Order#26
# of Lines
SKU # Qty
3 3927 18 5422 12 6717 24
Order#11
# of Lines
SKU # Qty
5 1481 8 2840 18 3906 18 3079 15 5422 18
Order#12
# of Lines
SKU # Qty
5 1524 13 2840 34 3927 12 1481 3 6079 18
Family-A & B & C Family-A & B
Family-B & C
Family-A & C
Plotting Item Family Percentages
Information from the Profile
We get a lot of orders for only family A items and only family B items
Items from family C are usually ordered with items from family A or family B—rarely alone
Use this information to group items by family in separate areas Maximize number of orders that can be filled from a single area Minimize the size of each area (to keep travel distance small)
If room for three aisles, where would you put aisles for A, B, C?
Order Quantity Profile
Look at what unit loads are needed to fill an order Pallets Cases Eaches A mix of these (progressive dimension system)
Store in quantities to make appropriate unit loads available for picking Easier for picker to handle Efficient to pick Improve picking accuracy
Plotting Order Quantity Percentages
Information from the Profile
Most orders are filled with full cases, so most of the inventory will be stored as cases stacked on a pallet Storage equipment will be some kind of pallet rack
For less than pallet quantities, different storage equipment is possible, depending on conditions Pick from an open carton stacked on pallet with rest of full
cartons Store individual cartons on separate shelving or bins
Unit Load Profiling
Look at what unit loads (full or partial) customers order
The unit loads that SKUs are shipped in should be the unit loads you storeAvoids wasted time repacking the SKUs
Unit LoadFor SKU 1481
the most-ordered SKU in this example
Order#1
# of Lines
SKU # Qty
3 1481 6 1979 24 1524 18
Order#13
# of Lines
SKU # Qty
2 2840 24 1481 6
Order#19
# of Lines
SKU # Qty
4 1901 12 1481 6 4800 24 5100 6
Order#5
# of Lines
SKU # Qty
6 1481 12 1979 12 1955 6 1972 12 1901 6 1524 6
Order#22
# of Lines
SKU # Qty
1 1481 12
Order#29
# of Lines
SKU # Qty
4 1981 24 1955 12 1481 12 1524 6
Order#14
# of Lines
SKU # Qty
5 1972 18 1481 12 6079 12 4817 24 6717 12
Order#4
# of Lines
SKU # Qty
2 1481 18 2777 15
Order#8
# of Lines
SKU # Qty
6 1481 15 1979 12 2777 6 3927 9 3979 7 2840 9
Order#12
# of Lines
SKU # Qty
5 1524 13 2840 34 3927 12 1481 3 6079 18
Order#31
# of Lines
SKU # Qty
2 2839 3 1481 6
Order#15
# of Lines
SKU # Qty
4 1972 13 1524 18 1481 9 1956 36
Order#21
# of Lines
SKU # Qty
4 1972 6 1524 10 1481 9 1979 18
Order#32
# of Lines SKU # Qty
2 3906 17
1481 9
Order#17
# of Lines
SKU # Qty
4 1979 11 3906 13 1481 15 2840 14
Order#2
# of Lines SKU # Qty
2 1481 3
3979 6
Order#23
# of Lines
SKU # Qty
3 1901 24 5340 12 1481 18
3 units ordered(½ case)
6 units ordered(1 case)
15 units ordered(2½ case)
12 units ordered(2 case)
9 units ordered(1½case)
18 units ordered(3 case)
Plotting Unit Load PercentagesFor a single SKU
Information from the Profile
50% of orders for this SKU require only full-carton quantities6, 12, 18 items
More than 75% of orders require a mix of only full-carton and half-carton quantities3, 6, 9, 12, 15, 18 itemsPackaging the items in bundles of 3 within the main
carton would reduce picking time for orders needing 3, 9 , or 15 items
1 move to get 3 items
Lines per Order Profile
Each SKU on an order represents a “line”No. Lines = No. Locations a picker must visit
May need to pick multiple units of each line itemNo. Lines ≠ No. Units ordered by a customer
Lines per Order
Order#1
# of Lines
SKU # Qty
3 1481 6 1979 24 1524 18
Order#13
# of Lines
SKU # Qty
2 2840 24 1481 6
Order#14
# of Lines
SKU # Qty
5 1972 18 1481 12 6079 12 4817 24 6717 12
Order#16
# of Lines
SKU # Qty
1 1979 12
Order#19
# of Lines
SKU # Qty
4 1901 12 1481 6 4800 24 5100 6
Order#20
# of Lines
SKU # Qty
2 2705 18 2840 12
Order#22
# of Lines
SKU # Qty
1 1481 12
Order#23
# of Lines
SKU # Qty
3 1901 24 5340 12 1481 18
Order#24
# of Lines
SKU # Qty
2 3122 18 2811 18
Order#29
# of Lines
SKU # Qty
4 1981 24 1955 12 1481 12 1524 6
Order#5
# of Lines
SKU # Qty
6 1481 12 1979 12 1955 6 1972 12 1901 6 1524 6
Order#26
# of Lines
SKU # Qty
3 3927 18 5422 12 6717 24
Order#27
# of Lines
SKU # Qty
3 4060 12 5422 24 6079 12
Order#9
# of Lines
SKU # Qty
1 2705 9
Order#17
# of Lines
SKU # Qty
4 1979 11 3906 13 1481 15 2840 14
Order#30
# of Lines
SKU # Qty
5 1901 13 1481 14 1524 7 1972 7 1955 15
Order#32
# of Lines
SKU # Qty
2 3906 17 1481 9
Order#3
# of Lines
SKU # Qty
2 1481 11 2840 4
Order#6
# of Lines
SKU # Qty
1 2840 3
Order#10
# of Lines
SKU # Qty
1 2839 9
Order#7
# of Lines
SKU # Qty
3 2777 6 2705 27 2840 6
Order#8
# of Lines
SKU # Qty
6 1481 15 1979 12 2777 6 3927 9 3979 7 2840 9
Order#11
# of Lines
SKU # Qty
5 1481 8 2840 18 3906 18 3079 15 5422 18
Order#12
# of Lines
SKU # Qty
5 1524 13 2840 34 3927 12 1481 3 6079 18
Order#15
# of Lines
SKU # Qty
4 1972 13 1524 18 1481 9 1956 36
Order#18
# of Lines
SKU # Qty
4 1979 9 6079 18 1481 17 5100 13
Order#21
# of Lines
SKU # Qty
4 1972 6 1524 10 1481 9 1979 18
Order#25
# of Lines
SKU # Qty
3 3122 15 5422 6 6079 12
Order#28
# of Lines
SKU #
Qty
3 1481 16 1979 18 1956 12
Order#31
# of Lines
SKU # Qty
2 2839 3 1481 6
Order#2
# of Lines
SKU # Qty
2 1481 3 3979 6
Order#4
# of Lines
SKU # Qty
2 1481 18 2777 15
Plotting Lines per Order Percentages
Information from the Profile
Provides insight on amount of travel involved collecting all of the items for an order
Provides insight on equipment / method for carrying items picked by pickers
Profile also indicates percentage of items that consist of just 1 lineThese orders could be packed as they are picked,
since items from other zones aren’t neededMay have a dedicated area for packing these orders
since they don’t need sortation (most appropriate when 1 unit of a line is ordered)
Cube per Order Profiling
Cube is used to describe the space in a warehouseAll three dimensions are used for storage,
so we’re concerned about volume, not area
Can be…Amount of space occupied by a unit loadAmount of space available for storage in
the racks/shelves
Cube per Orderassuming0.1 ft3/unit for all SKUs
Order#16
# of Lines
SKU # Qty
1 1979 12
Order#22
# of Lines
SKU # Qty
1 1481 12
Order#9
# of Lines
SKU # Qty
1 2705 9
Order#6
# of Lines
SKU # Qty
1 2840 3
Order#10
# of Lines
SKU # Qty
1 2839 9
Order#2
# of Lines
SKU # Qty
2 1481 3 3979 6
Order#4
# of Lines
SKU # Qty
2 1481 18 2777 15
Order#3
# of Lines
SKU # Qty
2 1481 11 2840 4
Order#31
# of Lines
SKU # Qty
2 2839 3 1481 6
Order#13
# of Lines
SKU # Qty
2 2840 24 1481 6
Order#20
# of Lines
SKU # Qty
2 2705 18 2840 12
Order#24
# of Lines
SKU # Qty
2 3122 18 2811 18
Order#32
# of Lines
SKU # Qty
2 3906 17 1481 9
Order#1
# of Lines
SKU # Qty
3 1481 6 1979 24 1524 18
Order#23
# of Lines
SKU # Qty
3 1901 24 5340 12 1481 18
Order#26
# of Lines
SKU # Qty
3 3927 18 5422 12 6717 24
Order#27
# of Lines
SKU # Qty
3 4060 12 5422 24 6079 12
Order#28
# of Lines
SKU # Qty
3 1481 16 1979 18 1956 12
Order#29
# of Lines SKU # Qty
4 1981 24 1955 12 1481 12 1524 6
Order#17
# of Lines
SKU # Qty
4 1979 11 3906 13 1481 15 2840 14
Order#18
# of Lines
SKU # Qty
4 1979 9 6079 18 1481 17 5100 13
Order#30
# of Lines
SKU # Qty
5 1901 13 1481 14 1524 7 1972 7 1955 15
Order#5
# of Lines
SKU # Qty
6 1481 12 1979 12 1955 6 1972 12 1901 6 1524 6
Order#8
# of Lines
SKU # Qty
6 1481 15 1979 12 2777 6 3927 9 3979 7 2840 9
Order#25
# of Lines
SKU # Qty
3 3122 15 5422 6 6079 12
Order#7
# of Lines
SKU # Qty
3 2777 6 2705 27 2840 6
Order#19
# of Lines
SKU # Qty
4 1901 12 1481 6 4800 24 5100 6
Order#21
# of Lines
SKU # Qty
4 1972 6 1524 10 1481 9 1979 18
Order#15
# of Lines
SKU # Qty
4 1972 13 1524 18 1481 9 1956 36
Order#11
# of Lines
SKU # Qty
5 1481 8 2840 18 3906 18 3079 15 5422 18
Order#12
# of Lines
SKU # Qty
5 1524 13 2840 34 3927 12 1481 3 6079 18
Order#14
# of Lines
SKU # Qty
5 1972 18 1481 12 6079 12 4817 24 6717 12
0.1 to 2.5 ft3
5.1 to 7.5 ft3
2.6 to 5.0 ft3
≥ 7.6 ft3
Plotting Cube per Order Percentages
Information from the Profile
Cube of an order represents size of shipment to the customer
Can affect method used to pack the orderPallet vs. CartonSize of carton
May also affect shipping methodParcel delivery vs. Less-than-Truck Load (LTL)
Item Activity Profile
Item Activity reflects how frequently it’s ordered and picked
Each order for an item represents additional work for warehouse Travel to storage Retrieval from storage
Considering Item Activity when assigning a storage location can reduce the amount of work when the item is ordered Especially for travel
Typical Item Activity
SKU #1481
Units 21,330/week
Pallets 150 units
Cube 0.6 ft3/carton
Activity of many SKUs…
SKU #1481
Units
Pallets
Cube
SKU #1979
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/carton
SKU #2840
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/carton
SKU #1901
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/carton
SKU #2705
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/carton
SKU #3906
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/carton
SKU #6079
Units 48/week
Pallets 90units
Cube 1.2 ft3/carton
SKU #1524
Units 48/week
Pallets 90units
Cube 1 ft3/carton
SKU #5422
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/carton
SKU #1956
Units 48/week
Pallets 90units
Cube 1 ft3/cartonSKU #1972
Units 1,2400/week
Pallets 90 units
Cube 1 ft3/carton
SKU #3927
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/cartonSKU #6717
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/carton
SKU #1955
Units 1,2400/week
Pallets 45 units
Cube 1.2 ft3/carton
SKU #3122
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/carton
SKU #2777
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/carton
SKU #1981
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/cartonSKU #4800
Units 1,2400/week
Pallets 90 units
Cube 1ft3/carton
SKU #4817
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/carton
SKU #5100
Units 19/week
Pallets 45 units
Cube 1.2 ft3/cartonSKU #2811
Units 18/week
Pallets 45 units
Cube 1.2 ft3/carton
SKU #3079
Units 1,2400/week
Pallets 150 units
Cube 1.2 ft3/carton SKU #3979
Units 1,2400/week
Pallets 150 units
Cube 1ft3/cartonSKU #2839
Units 12/week
Pallets 150 units
Cube 1.2 ft3/cartonSKU #4060
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/carton
SKU #5340
Units 12/week
Pallets 45units
Cube 1.2ft3/carton
Creating the Item Profile
Rank SKUs from most units/week to least
Usually divided into three classes (A, B, C)A – Fastest movers
Probably 5% – 10% of SKUsConsider keeping these in a special “Forward Pick Area”
B – Average Probably 10% - 15% of SKUsConsider keeping these near front end of aisles
C – Slowest moversProbably 80% or more of SKUsStore these in longer travel locations
Demand Profile
SKU #1481
Units
Pallets
Cube
SKU #1979
Units
Pallets
Cube
SKU #2840
Units 1,2400/week
Pallets 150 units
Cube 0.6 ft3/carton
SKU #1901
Units
Pallets
Cube
SKU #2705
Units
Pallets
Cube
SKU #3906
Units
Pallets
Cube
SKU #6079
Units
Pallets
Cube
SKU #1524
Units
Pallets
Cube
SKU #5422
Units
Pallets
Cube
SKU #1956
Units 48/week
Pallets 90units
Cube 1 ft3/carton
SKU #1972
Units
Pallets
Cube
SKU #3927
Units
Pallets
Cube
SKU #6717
Units
Pallets
Cube
SKU #1955
Units
Pallets
Cube
SKU #3122
Units
Pallets
Cube
SKU #2777
Units
Pallets
Cube
SKU #1981
Units
Pallets
Cube
SKU #4800
Units
Pallets
Cube
SKU #4817
Units
Pallets
Cube
SKU #5100
Units
Pallets
Cube
SKU #2811
Units
Pallets
Cube
SKU #3079
Units
Pallets
Cube
SKU #3979
Units
Pallets
Cube
SKU #2839
Units
Pallets
Cube
SKU #4060
Units
Pallets
Cube
SKU #5340
Units 12/week
Pallets 45units
Cube 1.2 ft3/carton
Plotting the Demand Profile
A
Information from the Profile
Most popular SKUs represent most of demand, but a small portion of total SKUsPareto’s Law: 20% of the SKUs account for 80%
of the items ordered We need to do a good job storing and picking these SKUs
because they represent most of the work
A large percentage of SKUs (maybe even more than half) represent the smallest category of demand
Applications of the Item Profile
Grouping SKUs into classes for storage
Identifying assignments in Forward and Reserve storage areas
Storage and material handling strategies
Getting Started
Profiling requires data Need several months, to provide a picture of the long-term
situation (seasonality)
Data will probably require preparation Identify which data fields in the Work Management System
(WMS) contain the needed data May have data values that need to be fixed
Design shouldn’t start until you have a profile that describes your warehouse situation
Data Preparation
Data may not be completeEmpty fields where data wasn’t available or recorded
Data may not be accurateInvalid SKUsNegative inventory levels
Need to clean up this informationFix values where possibleDelete entries if fix isn’t possibleProbably will need to be done manually
What comes next…
Completed profiles give data that is needed for an effective facility designAmount of space (cube) for storageTypes of storage equipment
Profiles are also used to design operationsMethods for order pickingEquipment for order picking
In Summary
Order profiling… … needs to be done before a warehouse is
designed (or redesigned)
… is never complete because the order characteristics change and the warehouse design and management need to be updated to reflect these changes
… if done accurately, yields excellent results and useful information
… if done incorrectly, can produce inaccurate conclusions and lead to bad decisions
Sources for further reading
Warehouse and Distribution Science, John Bartholdi and Steven Hackman (2008).
Available on-line at http://www2.isye.gatech.edu/~jjb/wh/
Facilities Planning, James Tompkins, John White, Yavuz Bozer, and Jose Tanchoco, 3rd Edition (2002) Wiley.
World-Class Warehousing and Material Handling, Edward Frazelle (2001) McGraw-Hill.
04/18/23 IENG 471 Facilities Planning 42
Questions & Issues?