FRAZELLE Introduction Why have a warehouse Introduction...

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FRAZELLE Introduction: Why have a warehouse?
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Introduction- Chapter 1 1.1 Supply Chain Imbalances 1.1 Supply Chain Imbalances 1.2 High- Speed, Zero Defect Supply Chains 1.2 High- Speed, Zero Defect Supply Chains 1.3 Value Added Warehouses 1.3 Value Added Warehouses 1.4 Rising Warehouse costs 1.4 Rising Warehouse costs
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1.1 Supply Chain Imbalances The supply chain integration will never be so well coordinated that the warehouse will be completely eliminated. Balance supply and demand Protect against uncertainty Allow quantity discounts Support production Promote transport economies Provide customer service Reduce costs Align business activities
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1.3 Value Added Warehouses Warehouses (WH) add value to the supply chain Contribute to a competitive advantage Raw Material (RM) and component warehouses - Work-in-process WH - Finished foods WH - Distribution WH and distribution centers - Fulfillment WH/centers - Local WH - Value-added service WH
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1.4 Rising Warehouse costs W hy are warehouses so expensive? Represent between 2-5% cost of sales The warehouse manager has to focus on increasing service and decreasing the costs Issues such as smaller transactions, increased items, increasing customization, Value adding Returns and International orders. As well as Decreasing time to process the order Decreasing margins for error
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WAREHOUSE MASTER PLANNING METHODOLOGY Master Planning Warehouse Management System Warehouse Workforce Measures & Goals Processes INVESTIGATE INNOVATE IMPLEMENT Critical for warehouses to work efficiently, quickly and error free
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Warehouse framework warehousing is dependent on other logistics activities
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Warehouse Fundamentals Receiving Pre-packaging Put-away Storage Order picking Packaging and/or pricing Sortation and/or accumulation Unitizing and shipping
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Warehouse Activity Profiling: Chapter 2 Warehouse activity profiling is the systematic analysis of item and order activity and serves as the basis for decision making, areas for improvements/reengineering, opportunities for planning/design, justifications for investments/funds allocation.
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Planning and Design Issue Key Questions Required Profile Profile Components 1. Order picking and shipping process design • Order batch size • Pick wave planning • Picking tour construction • Shipping mode disposition Customer order profile • Order mix distributions • Lines per order distribution • Lines and cube per order distribution 2. Receiving and putaway process design • Receiving mode disposition • Putaway batch sizing • Putaway tour construction Purchase order profile • Order mix distributions • Lines per order distribution • Lines and cube per order distribution 3. Slotting • Zone definition • Storage mode selection and sizing
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