STORAGE &

WAREHOUSING
FACILITIES PLANNING

Missions of a Warehouse
Functions that a warehouse may serve:
1.

2.
3.

Balance and buffer the variation

between production schedules and
demand
Accumulate and consolidate products
from various points of manufacture
Permit rapid response.

Functions in the Warehouse

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Receiving
Inspection
Prepackaging
Put away
Storage
Order Picking
Postponement
Sortation
Packing and shipping
Cross-docking
Replenishing

Design Consideration

Ideal Facility for Pure

Supplier Consolidation
(Full Pallet Movement)

Warehouse Space
Requirements

Storage Operations

There are two main objectives in storage

and warehousing functions:
Maximize

resource utilization, such as space,

equipment, and personnel, while sustaining the
ability to obtain goods quickly.
Maximize customer service subject to resource
constraints.

Goals in designing storage and

warehousing systems

Maximize space utilization

Maximize equipment utilization
Maximize labor utilization
Maximize accessibility of materials
Maximize protection of materials
To achieve these goals certain requirements must
be fulfilled. The adequate space, equipment,
personnel services and offices, well trained
personnel, and a properly planned layout.

Storage space planning

The two storage location methods

that are sometimes thought of as the
extreme points of view are:
Randomized

Storage
Dedicated Storage

Randomized storage is when a load arrives for storage;

the closet-available-slot is designated as the storage
location. Retrievals are performed on a first-in, first-out
(FIFO) basis. The FIFO policy provides for a uniform
rotation of stock
Dedicated storage is use when stock-keeping-unit (SKU)
is assigned a specific storage location.
There are two variations of dedicated storage:
Storage of items by part number.
Storage of items based on level of activity and
inventory.
The amount of space required for the Randomized
Storage is the maximum of the aggregate inventory
level. The space required for the dedicated storage is
the sum of the inventory.

Storage Layout Planning

Objectives:
To utilize space effectively
To provide efficient materials handling
To minimize storage cost while
providing the required levels of service
To provide maximum flexibility
To provide good housekeeping

Principles:
Popularity, storing of popular in such away the travel
distance is minimized
Similarity, the layout of storage area related to the
similarities of the items being stored
Size, a variety of storage location sizes should be provided
Characteristics, divided into categories of:
Perishable materials
Oddly shaped and crushable items
Hazardous materials
Security items
Compatibility
Space utilization, maximize space utilization as well as
maximize the level of service provided while keeping these
factors in mind:
Conservation of space
Limitation of space
Accessibility