Material handling and Storage Systems
Warehousing 4.0
1
Warehouse slotting is the strategic organization of inventory within a
warehouse to optimize storage, picking, and overall efficiency. It involves
determining the best locations for products based on factors like size,
weight, demand, and frequency of access.
Order Lead Time:
•The period from when a customer places an order to when they receive it.
Procurement Lead Time:
•The time it takes from ordering inventory from a supplier to when it reaches the warehouse.
Supplier Lead Time:
•A crucial component of procurement, this is the time it takes for a supplier to deliver the requested
items.
Warehouse Lead Time:
•Once the inventory arrives, it takes time to process, inspect, and make the items available in the
warehouse for customer orders.
Factors Affecting Lead Time
•Supplier Performance: Suppliers' ability to deliver on time.
•Transportation Delays: Issues with freight, shipping, and transit.
•Customs and Border Checks: Delays at international borders.
•Market Conditions: High demand can lead to longer production and delivery times.
•Operational Inefficiencies: Delays in warehouse order processing, picking, packing,
and shipping.
Customer lead time is a sum of various sub-lead times, including:
1.Order Placement: The customer places an order.
2.Order Processing: The order is verified, and payment details are confirmed
before being sent to the warehouse.
3.Picking and Packing: Warehouse staff locate the ordered product, pick it
from the shelf, and package it for shipping.
4.Shipping/Transportation: The packaged order is sent from the warehouse to
the customer.
5.Delivery: The final receipt of the product by the customer.
Factors Influencing Warehouse Layout
Design
• Inventory turnover
• Storage method
• Product configuration
• Product characteristics
• Material handling methods
• Safety and security
Source: Logistics Management by V. V. Sople
Material Handling Stages
• Unloading the incoming material from transport vehicle.
• Moving the unloaded material to assigned storage place in the warehouse.
• Lifting the material from storage place during order picking.
• Moving material for inspection and packing.
• Loading the boxes/cartons on the transport vehicle.
Material Handling Principles
• Standard equipment should be preferred to keep low capital investments.
• Equipment designed for maximum continuous flow should be preferred.
• Portable or movable equipments to be preferred.
• Ratio of dead-weight to pay-load should be minimum for handling equipment.
• Gravity flow should be incorporated in the system design.
Material Handling Systems
• Manual
• Mechanical
• Semi-automatic
• Automatic
• Information guides
Selection Criteria: Material Handling Systems
• Volumes to be handled
• Speed in handling
• Productivity
• Product characteristics—weight, size and shape
• Nature of the product—hazardous, perishable and
crushable
Material Handling
Manual trolley
• Versatile
• For smaller loads
• For short distance
Material Handling
Forklift
• Manual or mechanized
• Portable
• Large distance travel
• Medium and large loads
handling
• Vertical movement
• Intermittent duty
• Directional undeliverable
Source: https://www.slideshare.net/thesaifeye/material-handling-storage-system
Source: https://www.slideshare.net/thesaifeye/material-handling-storage-system
Material Handling
Material handling at sea ports
Fig. Robotic mobile fulfillment system
Source: https://doi.org/10.1007/978-981-16-5644-6
Benefits of Scientific Storage
• Ensures space economy
• Enhances warehouse throughput
• Ease in material location and tracing
• Ensures security, safety and housekeeping
Storage Methods
Advantages
• Simplest system
• No investment
• Stacking on platform or floor
• Wide variety of products can be stored
Disadvantages
• Limitation on stack height
• Loading/unloading problem
Block storage
Storage Methods
Rack storage
Load Unitization
• The unit load is constructed by bringing together large number of individual items of identical
configuration, so as to make a large load, which ensures convenience during storage, handling and
transportation.
Advantages
• Helps in optimum utilization of storage space.
• Increases stability of products during transportation.
• Lower handling cost due to unitizing.
• Increases speed of material flow.
• Reduces frequency of material handling.
• Facilitates handling loads with machines.
Disadvantages
• Does not give compete protection to product from environmental effects.
Pallet storage
Some Tips Add automation wisely:
•Use forklifts that enable workers to move pallets and larger items.
•Make the most of conveyor belts, sorters, and automated packing stations. These tools not only
improve efficiency, but they also increase speed and ensure picking accuracy.
•Be careful not to overdo it with technology. Once put in place these expensive automation
systems typically cannot be easily upgraded and changed.
•To make the most of your WMS, provide your workers with hand-held RF readers telling them
what and how many to pick at each location.
Maximize vertical space:
•Take advantage of every inch of available space (floor to ceiling
•Pallet racking lead to safer working conditions as well as increased efficiency
Warehouse Automation:
Number of AGV Required
Dd = total average loaded travel distance
De = total average empty travel distance
Ndr = number of deliveries required per hour
Th = loading and unloading time
Tf = traffic factor that accounts for blocking of vehicles and waiting of vehicles in line and at intersections. If there is no
congestion, the traffic factor is 1. when more vehicles are involved, the traffic factor value will certainly be less than 1.
Normally, Tf lies between 0.85 to 1.
v = vehicle speed
The total time per delivery per vehicle, Tdv
Dd De
Tdv = + Th +
v v
Number of deliveries per vehicle per hour
60T f
Nd =
Tdv
N dr
Number of automated guided vehicles nagv =
Nd
Flipzon (FZ) is planning to integrate the mobile robots in their warehousing
operations. FZ is interested in estimating the number of bots required to satisfy
the needs of the warehousing system which must be capable of picking 100 pods
per hour. FZ has already decided to adapt a parts-to-picker system and the bots
serves the purpose.
Bot Speed= 9ft/s
Average loaded travel distance per delivery = 362 ft
Average empty travel distance per delivery = 260 ft
Pickup time =30 s
Drop-off time = 60 s
Traffic Factor = 0.85
Planning a Robot-Human Coordinated Parts-to-Picker
Order Picking System in an e-commerce Warehouse
Essential Warehouse KPIs
for optimal operation
Warehousing Excellence Toolkit
Audit checklist for a warehouse and its operations
Carried Out by: Location: Date:
The audits are based on what we see as best practice in a
Item No Poor Good Excellent N/A Comments
warehouse. A
Comprehensive signage for delivery drivers in multiple
Languages
Stock adequately protected from theft and Pilferage
Escape routes clearly marked and obstruction Free
Is there disabled access into the building?
Racking condition is checked regularly and reported
Are there any overhanging pallets in the racks?
Weight capacity visible on the end of the racks
Are sufficient security measures in place for high-value
items?
Staff have correct license for type of truck Operated
Record of safety training kept up to date
Are sufficient safety measures in place for hazardous items?
5S or Gemba Kanri
When to use
When a company is looking to improve efficiency within the
warehouse and instil a culture of continuous improvement
35
https://www.ibtimes.co.uk/mind-gap-industry-4-0-future-manufactu
ring-1665243.
Fig. The four stages of the warehousing revolution
Source: https://doi.org/10.1007/978-981-16-5644-6
Fig. The four levels of warehouse handling systems
Source: https://doi.org/10.1007/978-981-16-5644-6
Warehouse 4.0
A modern warehouse is expected to leverage technologies-
• RFID
• QR code
• Bio-metrics
• Warehouse management software solutions
• Autonomous ground vehicles
• Pick-and-place robots
• Computer vision
• Networked sensors
Source: FlytBase, Inc. 2019
https://www.ncl.ac.uk/media/wwwnclacuk/pressoffice/files/pressreleaseslegacy/DHLTrendReport_Internet_of_things.pdf
https://www.ncl.ac.uk/media/wwwnclacuk/pressoffice/files/pressreleaseslegacy/DHLTrendReport_Internet_of_things.pdf
Focussed Group Discussion
30th August (Tuesday)