Warehouse Operating Principles

27/08/2020 0 By indiafreenotes

Once it has been determined to use a warehouse, the next step is designing it. Whether the warehouse is a small manual operation or a large automated facility, the following three principles are relevant:

  • Design criteria
  • Handling technology
  • Storage plan

Design Criteria

Warehouse design criteria address physical facility characteristics and product movement. Three factors to be considered in the design process are:
The number of stories in the facility: 

  • The ideal warehouse design is limited to a single story so that product does not have to be moved up and down. 
  • The use of elevators to move product from one floor to the next requires time and energy. 
  • The elevator is also often a bottleneck in product flow since many material handlers are usually competing for a limited number of elevators. 
  • While it is not always possible, particularly in central business districts where land is restricted or expensive, warehouses should be limited to a single story.

Height utilization:

  • Regardless of facility size, the design should maximize the usage of the available cubic space by allowing for the greatest use of height on each floor. 
  • Most warehouses have 20- to 30-foot ceilings (1 foot = 12 inch; 1 inch = 2.54 cm), although modern automated and high-rise facilities can effectively use ceiling heights up to 100 feet. 
  • Through the use of racking or other hardware, it should be possible to store products up to the building’s ceiling. 
  • Maximum effective warehouse height is limited by the safe lifting capabilities of material-handling equipment, such as forklifts.

Product flow:

  • Warehouse design should also allow for straight product flow through the facility whether items are stored or not. 
  • In general, this means that product should be received at one end of the building, stored in the middle, and then shipped from the other end. 
  • Straight-line product flow minimizes congestion and confusion.

Handling technology

The second principle focuses on the effectiveness and efficiency of material-handling technology.  The elements of this principle concern, i.e.:

Movement continuity: 

  • Movement continuity means that it is better for a material handler or piece of handling equipment to make a longer move than to have a number of handlers make numerous, individual, short segments of the same move. 
  • Exchanging the product between handlers or moving it from one piece of equipment to another wastes time and increases the potential for damage. 
  • Thus, as a general rule, fewer longer movements in the warehouse are preferred.

Movement scale economies:

  • Movement scale economies imply that all warehouse activities should handle or move the largest quantities possible. 
  • Instead of moving individual cases, warehouse activities should be designed to move groups of cases such as pallets or containers. 
  • This grouping or batching might mean that multiple products or orders must be moved or selected at the same time. 
  • While this might increase the complexity of an individual’s activities since multiple products or orders must be considered, the principle reduces the number of activities and the resulting cost.

Storage Plan

According to the third principle, a warehouse design should consider product characteristics, particularly those pertaining to volume, weight, and storage. Product volume is the major concern when defining a warehouse storage plan. High-volume sales or throughput product should be stored in a location that minimizes the distance it is moved, such as near primary aisles and in low storage racks. Such a location minimizes travel distance and the need for extended lifting. Conversely, low-volume product can be assigned locations that are distant from primary aisles or higher up in storage racks. 

Similarly, the plan should include a specific strategy for products dependent on weight and storage characteristics. Relatively heavy items should be assigned to locations low to the ground to minimize the effort and risk of heavy lifting. Bulky or low-density products require extensive storage volume, so open floor space or high-level racks can be used for them. On the other hand, smaller items may require storage shelves or drawers. The integrated storage plan must consider and address the specific characteristics of each product.