CHAPTER 9 PHYSICAL INVENTORY AND WAREHOUSE MANAGEMENT

CHAPTER 9: PHYSICAL INVENTORY AND WAREHOUSE MANAGEMENT

Warehouse Management

Objectives:

Minimize cost

Maximize customer services

 The cost of operating that may involve in warehouse can be broken down into 

capital and operating cost

Capital cost (space and material handling equipment)

Operating cost (labor, measures of labor productivity)

          WAREHOUSE ACTIVITIES

          ~ Receive the goods = accept goods from outside and the warehouse must:

1)      Check goods against an order and bill of lading

2)      Check the quantities

3)      Check for damages and fill out

4)      Inspect goods if required

          ~ Identify the goods

          ~ Dispatch goods to storage

          ~ Holds goods

          ~ Pick goods

          ~ Marshal the shipments

          ~ Dispatch the shipments

          ~ Operate an information system

               

               

 FORMULA

1)      No. of pallet required = Total SKU/ No. of SKU

2)      Pallet positioned required = No. of pallet/ High

3)      Total no. of pallet position = No. of pallet position x high

4)      Cube utilization = Total no. of pallet/ (pallet position needed x high)

5)      Racking = Total of pallet/ high

EXAMPLE 1

SKU = 7000 carton

Pallet contain = 30 carton

High = 4

Pallet position required = No. of pallet/ High

                          = (7000/ 30)/ 4

               = 234/4

                               = 59 pallet position

EXAMPLE 2

Accessibility = 100 %                  High = 4

SKU	NO OF PALLETS	PALLET POSITION REQUIRED
A	14 /4	4
B	17 / 4	5
C	40 / 4	10
D	33 / 4	9
E	55 / 4	14
F	22 / 4	6
G	34 / 4	9
TOTAL	215	57

a)      Pallet position required = 57

b)      Cube utilization  = Total No. of pallet / (pallet position need x high)

                                = 215 / (57 X 4) x 100

                                = 94 %

c)       Racking = Total no. of pallet / high

          = 215 / 4

          = 54 pallet position