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
 Receiving
 Quality Inspection
 Repackaging
 Put-away
 Storage
 Order-picking (postponement)
 Sortation & Accumulation
 Packaging & Shipping
 Cross-Docking
 Replenishment
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Receiving Operations

All or a subset of the following sequence:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
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Inbound delivery scheduling and information exchange
ASN verification and confirmation
Delivery arrival and spotting
Vehicle secured at the receiving dock
Seal inspection / breaking
Initial delivery inspection – accepted / refused
Merchandise unloaded (unitized or loose)
Unloaded material is staged for final inspection
Determination & disposition of carrier damage
Load storage & over-pack disposal activities
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Shipping Operations

All or a subset of the following sequence:
1.
2.
3.
4.
5.
6.
7.
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Order accumulation & packing
Order staging for loading / labeling & out-going
inspection / counting
Customer order & shipping release reconciliation
Spotting carrier to a dock
Securing carrier vehicle at dock
Loading vehicle
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 volumes
 Timing of peaks, and growth
 How many docks to be planned
 Carrier vehicle quantities
 Timing of arrivals & departures
 What kinds of dock equipment to be used
 Carrier vehicle types and variants
 Environmental conditions for loading / unloading
 How much space is required for shipping and receiving activities
 SKU container volumes
 Shipping debris volumes
 Material handling equipment space
 Carrier vehicle dock access and spotting space
 Carrier 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 Space
Is 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 facility
 Storage space may be allocated similar to
production space
 Pareto principal (80/20 Rule)
 Group Technology applies
 Information Systems improve picking
operations
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Questions & Issues
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