Storage and Handling Decisions

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Storage and Handling Decisions
Perfection is not attainable, but if we chase
perfection, we catch excellence.
Vince
Lombardi
Chapter 12
CR (2004) Prentice Hall, Inc.
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Storage/Handling Decisions in Inventory Strategy
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Storage Decisions
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Storage Decisions (Contd)
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Storage Decisions (Contd)
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Storage Decisions (Contd)
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When is a Pool Point Likely to be an Advantage?

• When shipment sizes are small
• When demand is far from source points
• When transportation rate economies are
  significant
• When pool point operating costs are low relative
  to transportation costs
• When transfer times are insignificant to service

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Handling Decisions
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Handling Decisions (Contd)
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Handling Decisions (Contd)
CR (2004) Prentice Hall, Inc.
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Handling Decisions (Contd)

Cube
-
per
-
order index


The cube-per-order index is the ratio of a
products average required cubic footage for
storage to the average number of daily orders on
which the item is requested. The products with
the lowest index value are located nearest the
outbound dock.

Layout example


By popularity
-


By cube
-


By CPO
-


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Handling Decisions (Contd)

• Order handling for increased handling efficiency
• Product sequencing on picker list
• Picker zoning and the bucket brigade
• Order splitting
• Multiple order picking per picking pass
• Stock Arrangement
• On-the-square layout
• Angular pallet placement

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Storage bay
Top-down view of storage bays
Center line of aisle
Pallet Layout in Warehouses
(a) On-the-square pallet placement
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Handling Decisions (Contd)
Increases cube utilization
CR (2004) Prentice Hall, Inc.