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BM_M0110/GSLM52700Warehouse Planning and
Operations Systems
Yat-wah Wan Room: C317; Email: ywan; Ext: 3166
Office Hour: Wed 3 5 pm, or by appointment
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Outline
importance of warehouses housekeeping issues functions and types of warehouses operations in warehouses
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The Importance of Warehouses
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A Supply Network
Raw Material
WH
FactoryWIP WH
Finished Goods WH
Distribution
Center
Retailer … Retailer
… Factory
Raw Material
WH
WIP WH
Finished Goods WH
Local WH Fulfillmen
t Center
Home Home…
…
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A Supply Network
Raw Material
WH
FactoryWIP WH
Finished Goods WH
Distribution
Center
Retailer … Retailer
… Factory
Raw Material
WH
WIP WH
Finished Goods WH
Local WH Fulfillmen
t Center
Home Home…
…
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Warehousing & Storage Industryin Taiwan#1
#1 http://win.dgbas.gov.tw/dgbas04/bc5/earning/ht4561e.asp
# of Employees Earning (NT$/M)
male female male female
Industry 1,976,818 1,136,561 49,245 34,729
Services 1,713,415 1,979,479 51,569 43,546
Year 2011
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Warehousing & Storage Industryin Taiwan#1
#1 http://win.dgbas.gov.tw/dgbas04/bc5/earning/ht4561e.asp
# of Employees Earning (NT$/Mon)
male female male female
Manufacturing 1,562,495 1,055,992 49,459 34,763
Wholesale & retail trade 714,473 761,036 46,272 39,633
Transportation & storage 184,046 78,362 52,574 45,432
Year 2011
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Warehousing & Storage Industryin Taiwan#1
#1 http://win.dgbas.gov.tw/dgbas04/bc5/earning/ht4561e.asp
Warehousing & storage
Truck freight transportation
Retail sale of general merchdise
Retail trade
Wholesale trade
Computer, electronic & optical products manufact
Electronic parts & components manufacturing
Earnings (NT$/Mon)# of Employ.
40,0558,374
34,94267,285
37,513137,543
34,401381,036
46,977956,930
50,423208,208
50,967561,485
Year 2011
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The Unimportance of Warehouses?
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Competition of Two Companies
1979 Kmart
best national discount retailer 1,891 stores, ave. annual revenue $7.25 mill/store
Wal-Mart a small local discount retailer 228 stores, each being about half as profitable as
Kmart’s
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Competition of Two Companies
Wal-Mart in 2011 number of stores (worldwide): number of employees: sales:
January 22, 2002, Chapter 11 (of the US Bankruptcy Code) for Kmart Corporation merged with Sears in 2005
Reasons? (Stalk et al. (1992) Competing on Capabilities: the New Rules of Corporate Strategy, Harvard Business Review, March-April, 57-69)
8979
2.1 millions
US$421.849 billions
GDP of Taiwan:
$423.0 billion
(2010, Wiki)
$504.6 billion
(2011, CIA Factbook)
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Strategy of Amazon
fulfillment centers /warehouses/distribution centers
1 3 5 7 9 11 13 15 170
10
20
30
40
50
60
Num.
Total Num.
Area
Total Area
Num. Total Num. Area (m ft2) Total Area
1997 1 1 0.2 0.21998 0 1 0 0.21999 3 4 2.31 2.512000 1 5 0.6 3.112001 0 5 0 3.11
2002 0 5 0 3.11
2003 0 5 0 3.112004 0 5 0 3.112005 3 8 1.08 4.192006 2 10 1.78 5.972007 3 13 2.02 7.992008 4 17 2.85 10.842009 0 17 0 10.842010 5 22 4.22 15.062011 10 32 8.68 23.742012 9 41 8.45 32.192013 6 47 6.3 38.492014 1 48 1 39.49
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Course Objectives
to enable students to have the basic knowledge to manage and to improve modern warehousees
to understand roles of warehouses in a supply chain more from the business and management perspective
issues to learn operations and processes in different types of warehouses equipment for warehouses
material handling, communication, information processing and system control
design, status assessment, benchmarking, and improvement of warehouses
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Words of Caution
learning is … (teaching is also …)
learning is … The real battlefield is out there …
Be prepared
Always try your best, and your best only
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House-Keeping Issues
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Structure of the Course
introduction (1 lecture) examples of warehouses (3 lectures) functions of warehouses (0.5 lectures) material handling equipment in warehouses (2.5 lectures) special functions & equipment of warehouses (2 lectures) benefit analysis & benchmarking of warehouses (2
lectures) papers and cases (3 lectures)
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Structure of the Course
introduction (1 lecture) examples of warehouses (3 lectures)
warehouses for standardized goods completely automated warehouses distribution centers cargo freight stations
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Structure of the Course
functions of warehouses (0.5 lectures) material handling equipment in warehouses
(2.5 lectures) storage and retrieval of
pallets cases small pieces
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Structure of the Course
special functions and equipment of warehouses (2 lectures) identification and communication equipment layout of warehouses
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Structure of the Course
benefit analysis and benchmarking of warehouses (2 lectures) benefit analysis and justification profiling and benchmarking
papers and cases (3 lectures) papers and cases also in other lectures
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Assessments
assignment 50% various forms: literature search, literature
review, essay, problems, presentation, etc.
project 50% proposal presentation report
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References
Books Abernathy, Frederick H., et al. [1999] A Stitch in Time: Lean Retailing
and the Transformation of Manufacturing -- Lessons from the Apparel and Textile Industries, New York: Oxford University Press.
Adams, Nicholas D., et al. [1996] Warehouse and Distribution Automation Handbook, New York: McGraw-Hill.
Bartholdi, John J. and Steven T. Hackman [2011] Warehouse and Distribution Science, http://www.warehouse-science.com.
Frazelle, H. Edward [2001] World-Class Warehousing and Material Handling, McGraw Hill: New York.
Heragu, Sunderesh [1997] Facilities Design, PWS Publishing Company, Boston, MA.
webpages: many
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Functions and Types
of Warehouses
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Types and Functions of Warehouses
Value-added service
ConsolidationStorage Distribution Increase Service Level
Inter-modal Interface
distribution centers
e-fulfillment
centers
3PL warehouses
private warehouses
warehouse operators
cargo terminals
courier services
…
…
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Operations in Warehouses
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Operations in Warehouses
receiving prepackaging (optional) putaway storage order picking packaging and/or pricing (optional) sorting and/or accumulation unitizing and shipping
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An Example
http://www2.isye.gatech.edu/~jjb/wh/sites/sites.html
a telecommunications DC in Denmark
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Examples
Eslite (誠品開發物流)
Shiseido (台灣資生堂:資生堂物流中心)
Anway (台灣安麗 : 安麗體驗廣場)
Yes Logistics (好好國際物流)
Cold Chain (嘉豐冷凍冷藏股份有限公司)
Taoyuan Free Trade Zone (遠雄自由貿易港區)
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Preparation for Next Week
container terminals: warehouses with standardized goods
Hongkong International Terminal Limited (HIT) & MPA (The Maritime Port Authority of Singapore)
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A Supply Network
Raw Material
WH
FactoryWIP WH
Finished Goods WH
Distribution
Center
Retailer … Retailer
… Factory
Raw Material
WH
WIP WH
Finished Goods WH
Local WH Fulfillmen
t Center
Home Home…
…
stores or (private)
warehouses in manufacturers and retailers
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A 3PL Warehouse
3 PL: e.g., members of HAFFA travel agents of cargoes consolidation of cargoes value-added services …
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Warehouse Operators
operators providing warehousing services storage, distribution, consolidation, value-added
services … for example, Kerry Logistics
offices: 600+, in six continents area of logistics facility: 3 mill m2 (3 km2; 300 h; 300
Jia) employees: 19,000 2011 revenue: US$2 bill
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Cargo Terminals
inter-modal interface, e.g., between air and land, or between sea and land temporary storage, information processing,
value-added service, … examples for air and sea
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Learning is Far More Important than …
sin () = x