Warehousing - Warehouse decisions

4 important questions on Warehousing - Warehouse decisions

Planning issues establish the character of the warehouse (size, type and shape), which will in turn determines attainable handling efficiency.

Define site selection.

Site selection: identifying both the general area (broad geography) and then the specific warehouse location. The factors driving site location are service availability and cost. Utility hookups, taxes and Insurance rates require evaluation as well.

Design decision: warehouse design must consider product movement characteristics. Which three factors must be determined?

1. The number of floors to include
2. A cube utilization plan (make optimal use of space, also in height)
3. Product flow (a logical setup for product improvement)

What are other warehouse decisions?

- Product-mix
- Expansion
- Handling
- Layout
- Sizing
- Warehouse management system (WMS)
- Yard Management Systems
- Accuracy and audits
- Security
- Safety and maintenance
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Describe the 3 categories of decision problems (lecture)

1.  Strategic (5+ year)
- Warehouse location problem
- Size and shape
- Equipment selection (invest in robot? which robot?)
- Warehouse design problem (process design, functional area sizing)
2.Tactical (6 months – 2 years):
- Space allocation
- Storage assignment
- Replenishment policies
- Order picking policies
3.Operational
-Dock doors scheduling and assignment
-Workforce scheduling
-Order batching
-Routing
-Chute assignment

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