L_SMS L-Supply systems management

Storage systems and warehousing in the supply chain.

Key words:

Warehouses, storage, commissioning, logistics objects

Chapter objectives:

  • To explain functions of warehouses,
  • To specify types of warehouses,
  • To assess ways of commissioning,
  • To define the concept of a logistic objec

Time required to study the chapter: 8 hours

Interpretation:


Functions and types of warehouses
Storage fulfills important functions in value-creating chains. If chain processes are to be optimal, it is necessary to balance capacity and time disproportion among raw material suppliers and their processors, among individual technological or logistics processes in the production or assembly, among the rhythm of production and requirements of the products users, among the dates of supplies of construction materials and the construction procedures, etc.

Requirements for the warehouse are of three kinds:
  • the order resulting from the nature of users´ orders of stored material and the nature of orders addressed to suppliers for stocks replenishment in the warehouse,
  • flow and warehouse capacity requirements resulting from the amount of revenue and expense depending on time,
  • assortment requirements, i.e. requirements for type, properties and number of items, parameters of handling units, movement of articles, etc.
Warehouses are divided according to many criteria:
In terms of warehousing type:
  • free
  • stacking
  • warehousing in racks
In terms of construction, we distinguish warehouses:
  • free, adjusted surfaces
  • covered
  • open
  • closed
Whereby, such warehouses may be (fig. 9-1):
  • flat
  • layered
  • high
  • inflatable halls, etc.
Figure 9- 1: Warehouses kinds

 
Organization and communication in the warehouse management
Warehouses and warehouse management organizations are one of the relevant factors influencing the quality level of processes in elements of the value-creating chain, and thus, the level of enterprise logistics. What requirements are placed on the organization of warehouses? We can divide them into two fields:
  • warehouse regime field,
  • administrative field.
The first field consists of:
  • stocks and storage places management,
  • handling and auxiliary equipment management,
  • receipt and management of orders,
  • orders formulation,
  • assignment of orders and handling equipment,
  • orders issue.
The second field consists of:        
  • invoicing,
  • inventorying,
  • statistics.
In order to ensure the optimal operation of the warehouse, it is necessary to monitor a number of static and dynamic variables.

Picking
Picking (commissioning) is to assemble (collate) a certain amount of logistics objects from the prepared quantity of required assortment based on information about the assigned requirements. This activity can be done through employees or using the equipment.
 
Logistics objects
The most important effect on the method of logistics processes realization and on the handling machines and equipment selection has for obvious reasons the material itself - a logistics object. Thus, the material is one of the decisive factors influencing the character of the logistics chain. If only one kind of logistics objects appears in the logistics process, we are talking about a sigle-type problem, otherwise (and such cases are in the majority) we are talking about a multi-type problem. Not all kinds of material can be effectively handled by the same handling equipment. Therefore, we pay a greater attention to their classification in terms of handling, since they create a necessary prerequisite for successful selection and appropriate assignment of storage and handling equipment.

Study materials:

Basic literature:
JEŘÁBEK, Karel. Logistika: study support for combined study. 1. ed. České Budějovice: Institute of Technology and Business in České Budějovice, 2012. 96p. ISBN 978-80-7468-016-8.
BAZALA, J. et al. Logistika v praxi. Prague: Verlag Dashöfer, 2004. ISBN 80-86229-71-8. 
MACUROVÁ, L. et. Logistika. A collection of examples. Study materials for part-time study. Zlin, Tomas Bata University, 2008. ISBN 978-80-3718-745-3.

Recommended study materials:
SCHULTE, CH.: Logistika. Prague, Victoria publishing, 1994. ISBN 80-85605-87-2.
 

Questions and tasks

  1. What is the main function of storage?
    1. to assemble (collate) a certain amount of logistics objects from the prepared quantity of required assortment based on information about the assigned requirements
    2. stocks and storage places management
    3. to balance capacity and time disproportion among raw material suppliers and their processors, among individual technological or logistics processes in the production or assembly, among the rhythm of production and requirements of the products users, among the dates of supplies of construction materials and the construction procedures, etc.
  2. Requirements for the warehouse do not include:
    1. commissioning
    2. flow and warehouse capacity requirements resulting from the amount of revenue and expense depending on time
    3. assortment requirements
  3. In terms of warehousing type, warehouse can be divided into:
    1. free, covered and open
    2. free, stacking, warehousing in racks
    3. flat, layered, high
  4. What requirements are placed on the organization of warehouses? We can divide them into two fields:
    1. billing and inventory field
    2. warehouse regime field, administrative field
    3. assortment requirements and order
  5. Picking is:
    1. to balance capacity and time disproportion among raw material suppliers and their processors
    2. to assemble (collate) a certain amount of logistics objects from the prepared quantity of required assortment based on information about the assigned requirements
    3. ensuring the optimum operation of the warehouse

Key to solve the questions:

  1. c
  2. a
  3. b
  4. b
  5. b