Introduction into Logistics
PhD Natasha Lutovinova
Logistics Lecturer
E-mail: Lutovinova.N@nhtv.nl
Room: G1.006
Handbook: Paul R. Murphy & Donald F. Wood,
Contemporary logistics (New Jersey 2011), 10th edition
3
Introduction into Logistics Course Outline
12.05 Introduction
13.05 SCM Concept, Inventory
14.05 Demand Management, Warehousing Management
15.05 Transportation Management, International Logistics
16.05 Poster Session
CHAPTER 10
Warehousing
Management
5-5
Learning Objectives
• To understand the role of warehouses and
distribution centers in a logistics system
• To identify the various types and functions of
warehouses
• To distinguish the various alternatives
available in warehouse design
• To examine the different types of handling
equipment available
6-5
Visser, Logistics: Principles, fig.1.8 cost structure of physical distribution
7-5
Cost structure of physical distribution
Warehousing, packaging, handling
External transport
Others
Inventory costs
22%
38%
6%
34%
Warehousing Management
Transportation at zero miles per hour
8-5
• Warehousing emphasizes storage of
products
• Distribution centers emphasize rapid
movement of products through the facility
• Throughput is the amount of product
entering and leaving a facility in a given time
period
• Regrouping function:
• - Accumulating (bulk making)(increasing
quantity)
• - Allocating (bulk breaking) (reducing
quantity)
9-5
Figure 10-2: Ideal facility
for pure supplier
consolidation (Full pallet
movement)
10 - 5
Fig. 10-1 Adding a Warehousing Facility: shorter-Haul Transporation
11 - 1
Producer
(Manufacturing)
Warehouse
facility
(Inventory)
Sales
Retailer A
Transportation
(Distribution)

Retailer B
Retailer C
Warehousing management
Retailer A
Transportation
(Distribution)
(Volume
shipment)
Transportation
(Distribution)
Retailer B
Retailer C
Visser, Logistics: Principles, fig.10.4 Overview of the warehouse function
Incoming transport
Receipt + inspection
Put away
Storage
Order picking
Inspection + inspection
Outbound transport
12 - 5
Overview of the warehouse
functions
Warehouse functions
Figure 7-7: The Transportation Manager Consolidates Shipments
Whenever He or She Can
13 - 5
Public, Private, Contract, and Multiclient
Warehousing
• Private warehousing
– Owned or occupied on a long-term lease
– Offers control to owner
– Assumes both sufficient demand volume and
stability so that warehouse remains full
– High fixed costs
14 - 5
Public, Private, Contract, and Multiclient
Warehousing
• Public warehousing
– Public warehouses
– Occupational Safety and Health Administration
(OSHA)
– Bonded storage warehouses
– Field warehousing
15 - 5
Public, Private, Contract, and Multiclient
Warehousing
• Contract warehousing
– Contract warehousing (3PL warehousing) is a
long-term arrangement providing unique
warehousing services to one client
– Both vendor and client share the risks associated
with the warehousing
– Less costly than private warehousing and more
costly than public warehousing
16 - 5
Public, Private, Contract, and Multiclient
Warehousing
• Multiclient warehousing
– Multiclient mixes attributes of contract and public
warehousing
– Limited number of customers
17 - 5
Design Considerations in Warehousing
• General considerations
– Quantity and character of goods must be known—
product profiling
– Know the purpose to be served
• Storage
• Distribution
• Cross-docking
18 - 5
Design Considerations in Warehousing
• Trade-offs
– Product / material – What will be
moved?
– Quantity / volume – How much will be
moved?
– Route process sequence - Where will
be moved to?
– Supporting services – Which support
will the movements be made with?
– Time – When will the movements be
made?
19 - 5
20 - 5
Design Considerations in Warehousing
• Trade-offs
• Fixed versus variable slot locations for
merchandise
– Fixed slot location
– Variable slot location
21 - 5
Design Considerations in Warehousing
– Build out (horizontal) versus build up
(vertical)
– Order-picking versus stock-replenishing
functions
– Two-dock versus single-dock layout
– Space devoted to Aisles versus Space
Devoted to Storage
– Paperless Warehousing
• Virtual warehouse versus real warehouse
– Retail Storerooms
22 - 5
Warehousing Operations
•
•
Storage and handling equipment
Warehouse management systems (Auto ID Data Capture
technology: barcode scanners, mobile computers, Wireless
LANs, RFID)
• Employee safety
– Proper handling of waste materials
• Dunnage
•
•
•
•
23 - 5
Hazardous materials
Warehousing security
Sanitation issues
Stock controls
24 - 5
Figure 10-8: Workplace safety issues
25 - 5
Warehousing Operations
• Labor-intensive versus mechanization
versus automation
• Space devoted to aisles versus space
devoted to storage
• Picker-to-part versus part-to-picker
systems
26 - 5