04/19/23 IENG 471 Facilities Planning 1

IENG 471 - Lecture 16

Warehouse Operations – Facility

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Warehousing Terms

SKU – Stock Keeping Unit Product in (packaged) form for warehouse operations

Value-Added A modification to the product to obtain business

(a product enhancement from the customer’s perspective or an enhancement to the customer’s experience in getting the item)

Cross-Docking Transforming incoming product to outgoing product without

moving the product to production or storage Spotting

Locating and positioning a carrier vehicle within the loading / unloading areas of the facility

ASN – Advance Shipping Notice Information about a shipment sent from the shipping firm to the

receiving firm, directly through EDI (electronic data interchange)

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Warehousing Metrics

Order-picking Improvement Productivity Improvement Space Utilization Improvement Value-Added Improvement Safety Improvement

Personnel & Equipment Cargo

Most plants do not make their money in the warehouse… For some, the warehouse IS the plant!

Distribution centers (Target, x-Mart; grocers; airports; …)Shipping businesses (Fed Ex, UPS; shipping ports; movers; …)

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Warehousing Functions

ReceivingQuality InspectionRepackagingPut-awayStorageOrder-picking (postponement)Sortation & AccumulationPackaging & ShippingCross-DockingReplenishment

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Receiving Operations

All or a subset of the following sequence:1. Inbound delivery scheduling and information exchange2. ASN verification and confirmation3. Delivery arrival and spotting4. Vehicle secured at the receiving dock5. Seal inspection / breaking6. Initial delivery inspection – accepted / refused7. Merchandise unloaded (unitized or loose)8. Unloaded material is staged for final inspection9. Determination & disposition of carrier damage10. Load storage & over-pack disposal activities

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Shipping Operations

All or a subset of the following sequence:1. Order accumulation & packing

2. Order staging for loading / labeling & out-going inspection / counting

3. Customer order & shipping release reconciliation

4. Spotting carrier to a dock

5. Securing carrier vehicle at dock

6. Loading vehicle

7. Dispatching the vehicle

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Facility Accommodations for S & R

Carrier spotting areas

Staging & inspection areas

Dock levelers & locking devices

Loading / unloading areas

Palletizing / repackaging space

Information system access for ASN / EDI

Carrier personnel space

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Shipping & Receiving Analysis

Analysis of requirements for: What is to be received and shipped

Peak product volumesTiming of peaks, and growth

How many docks to be plannedCarrier vehicle quantitiesTiming of arrivals & departures

What kinds of dock equipment to be usedCarrier vehicle types and variantsEnvironmental conditions for loading / unloading

How much space is required for shipping and receiving activitiesSKU container volumesShipping debris volumesMaterial handling equipment spaceCarrier vehicle dock access and spotting spaceCarrier personnel space

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SKU Analysis

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Truck Access

Service roads should be at least 24 ft wide if two-directional, and at least 12 ft wide if the road is one-directional

Add at least 4 ft to the road width if gate openings are needed

Provide a 4 ft wide walk, physically removed from the road, if pedestrian traffic is required along service roads

Increase gate openings by 6 ft if pedestrians will pass through

Right angle intersections should have at least a 50 ft radius

Prefer counterclockwise traffic circulation because left turns are safer than right turns** (UPS study suggests right turns!)

Truck waiting areas should be designed to hold the maximum expected number of trucks, and should be located adjacent to the dock apron

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90o Apron Space

Aprons are space allotted for spotting a vehicle – maneuvering room to align with the dock

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Angled Apron Space (Finger Docks)

Angled Aprons allow for access to tighter spaces

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Material Handling Equipment Space

MHE SpaceIs in addition to staging, storage, dock, and personnel space; and allows for maneuvering the MHE vehicle …

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Storage Space Analysis

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Design of Warehousing Space

Similar to design of the rest of the facility:Efficiency of space utilization should not

detract from the function of the facilityStorage space may be allocated similar to

production spacePareto principal (80/20 Rule)Group Technology applies

Information Systems improve picking operations

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Questions & Issues