Table Of ContentOperations / Supply Chain Management / Business Mulcahy
Sydow
A Supply ChAin logiStiCS
progrAm for WArehouSe
mAnAgement
A
David E. Mulcahy s Joachim Sydow
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A well-planned, well-structured warehouse management system (WMS) allows organizations rp
to make warehouse operation more efficient, more cost-effective, and more responsive.
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A Supply Chain Logistics Program for Warehouse Management details the concepts, Wy
applications, and practices necessary for the successful management of a WMS program. A
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Taking a process approach to a generic warehouse and its workings, the authors trace a r
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product’s life cycle from its receipt at the warehouse, through its outbound shipment, and
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to its eventual return. This approach illustrates the logistics of a well-run supply chain and
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provides support and insight for writing a WMS specification. i
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The book details each phase and its related process to guide an organization through the l
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installation and decision making process. Specific topics include o
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how to— g
• Reduce product damage mi
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• Enhance identified product flow and track inventory
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• Increase employee productivity
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• Improve customer service C
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• Reduce warehouse operating costs S
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• Improve profits
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• Assure asset protection
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Whether a warehouse operation supports a small, medium, or large business, A Supply Chain eo
Logistics Program for Warehouse Management is an important book to have in order to ng
design a WMS program that reduces operating costs, improves products, and maintains tr
timely delivery to customers.
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A Supply ChAin
logiStiCS progrAm
for WArehouSe
mAnAgement
Series on Resource Management
New Methods of Competing in the Global Supply Chain for Liquids: Out of the Box
Marketplace: Critical Success Factors from Approaches to Liquid Logistics
Service and Manufacturing by Wally Klatch
by Richard E. Crandall and William Crandall ISBN: 0-8493-2853-5
ISBN: 1-4200-5126-1
Supply Chain Architecture: A Blueprint
Supply Chain Risk Management: Minimizing for Networking the Flow of Material,
Disruptions in Global Sourcing Information, and Cash
by Robert Handfield and Kevin P. McCormack by William T. Walker
ISBN: 0-8493-6642-9 ISBN: 1-57444-357-7
Rightsizing Inventory ERP: Tools, Techniques, and Applications
by Joseph L. Aiello for Integrating the Supply Chain
ISBN: 0-8493-8515-6 by Carol A. Ptak with Eli Schragenheim
ISBN: 1-57444-358-5
Integral Logistics Management: Operations and
Supply Chain Management in Comprehensive Introduction to e-Supply Chain Management:
Value-Added Networks, Third Edition Engaging Technology to Build
by Paul Schönsleben Market-Winning Business Partnerships
ISBN: 1-4200-5194-6 by David C. Ross
ISBN: 1-57444-324-0
Supply Chain Cost Control Using Activity-
Based Management Supply Chain Networks and
Sameer Kumar and Matthew Zander Business Process Orientation
ISBN: 0-8493-8215-7 by Kevin P. McCormack and
William C. Johnson with William T. Walker
Financial Models and Tools for Managing ISBN: 1-57444-327-5
Lean Manufacturing
Sameer Kumar and David Meade Collaborative Manufacturing: Using
ISBN: 0-8493-9185-7 Real-Time Information to Support the
Supply Chain
RFID in the Supply Chain by Michael McClellan
Judith M. Myerson ISBN: 1-57444-341-0
ISBN: 0-8493-3018-1
The Supply Chain Manager’s Problem-Solver:
Handbook of Supply Chain Management, Maximizing the Value of Collaboration
Second Edition and Technology
by James B. Ayers by Charles C. Poirier
ISBN: 0-8493-3160-9 ISBN: 1-57444-335-6
The Portal to Lean Production: Principles Lean Performance ERP Project Management:
& Practices for Doing More With Less Implementing the Virtual Lean Enterprise,
by John Nicholas and Avi Soni Second Edition
ISBN: 0-8493-5031-X by Brian J. Carroll
ISBN: 0-8493-0532-2
Supply Market Intelligence: A Managerial
Handbook for Building Sourcing Strategies Integrated Learning for ERP Success:
by Robert B. Handfield A Learning Requirements Planning Approach
ISBN: 0-8493-2789-X by Karl M. Kapp, with William F. Latham and
Hester N. Ford-Latham
The Small Manufacturer’s Toolkit: A Guide ISBN: 1-57444-296-1
to Selecting the Techniques and Systems to
Help You Win Basics of Supply Chain Management
by Steve Novak by Lawrence D. Fredendall and Ed Hill
ISBN: 0-8493-2883-7 ISBN: 1-57444-120-5
Velocity Management in Logistics and Lean Manufacturing: Tools, Techniques,
Distribution: Lessons from the Military and How to Use Them
to Secure the Speed of Business by William M. Feld
by Joseph L. Walden ISBN: 1-57444-297-X
ISBN: 0-8493-2859-4
A Supply ChAin
logiStiCS progrAm
for WArehouSe
mAnAgement
David E. Mulcahy s Joachim Sydow
CRC Press
Taylor & Francis Group
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Boca Raton, FL 33487-2742
© 2008 by Taylor & Francis Group, LLC
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Version Date: 20130415
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Contents
Preface ..............................................................................................................................xxix
About the Authors ............................................................................................................xxxi
Chapter 1
Supply-Chain Logistics Segment or Warehouse Operation with WMS
Program Considerations ........................................................................................1
Introduction ......................................................................................................................1
Control ..............................................................................................................................2
SKU and Customer Orders and Data Flows ......................................................................2
First Steps ..........................................................................................................................3
Tie the Warehouse Operation and WMS Program Knot ...................................................3
Pebble in a Pond ................................................................................................................4
Signals that a Warehouse Needs a WMS Program .............................................................4
Warehouse Storage/Pick Concept with a WMS Program Resources .........................5
Warehouse with a WMS Program Operational Objectives .......................................5
Overview ...........................................................................................................................5
Chapter 2
Understanding the Supply Chain Logistics Segment ..............................................7
Introduction ......................................................................................................................7
Warehouse Design Parameters and Operational Aspects ...................................................8
Peak, Average, and Most Frequent SKU or Customer-Order Volumes ......................8
Vendor-Delivered–SKU and Customer-Order Characteristics ..................................9
Projecting Vendor–SKU and Customer-Order Warehouse Transactions ..................9
SKU and Customer-Order Characteristics ...............................................................10
Vendor-Delivered–SKU Inventory Projection Characteristics ..................................10
Warehouse Operation Storage Position Utilization ..................................................10
WMS-Program–Identified Storage-Pallet Locations ................................................10
Master Cartons ........................................................................................................11
Pieces .....................................................................................................................11
SKU Life Cycle ........................................................................................................11
Inventory-Control–Identified SKU Storage and Pick Positions ................................11
Projecting Inventory-Control–Identified Storage Position ......................................12
Master Carton and Pallet-Storage Volume ..............................................................12
v
vi n Contents
Master Carton and Pallet Pick-Position Projections ................................................12
SKU Types: Pallet, Master Carton, and Small Items ..............................................12
Master Carton Warehouse ...........................................................................12
Small-Item Warehouse .................................................................................13
Pallet Warehouse ..........................................................................................13
Pallet Bottom Support Device ......................................................................13
Warehouse Operation Objective ..............................................................................14
Conventional Warehouse: Store and Hold ....................................................14
Across-the-Dock Operation ..........................................................................14
Information Flows ...................................................................................................15
Warehouse Activities................................................................................................15
Inventory Control ........................................................................................16
SKU Storage and Pick-Position Locator ...................................................................17
SKU Location in a Storage Area ..............................................................................17
Inventory Locator: Philosophy and Principles ..........................................................17
SKU and Customer-Order Flow through a Facility and Value-Added Activities ......18
Single and Multiple Floors .......................................................................................18
SKU STORAGE ..............................................................................................................18
Single Deep Storage .................................................................................................19
Dense Storage ..........................................................................................................19
Aisle and Position Identification ..............................................................................19
Master Carton and Pallet-Storage Position Identification .......................................20
Floor Stack Storage Pallet Position Identification ....................................................20
Rack Identification ..................................................................................................21
Master-Carton and Pallet Warehouse Storage Vehicle .......................................................21
Master-Carton and Pallet-Storage Vehicles ..............................................................21
Storage- or Pick-Aisle Characteristics .......................................................................21
Aisle or Rack Height ...............................................................................................22
Picker and Forklift Truck Routing ..........................................................................22
Forklift Truck and AS/RS Crane Routing Patterns.................................................22
Warehouse Operation Customer-Order Fulfillment and Sort .................................22
Manual Order Fulfillment ......................................................................................23
Mechanized Order Fulfillment ...............................................................................23
Automatic Order Fulfillment ..................................................................................23
Order-Picker Routing Patterns ................................................................................23
Nonsequential Routing Pattern ..............................................................................24
Sequential Routing Patterns....................................................................................24
Picker Aisle Travel ..................................................................................................24
Horizontal Picker Routing Pattern ..........................................................................25
Picker Faces Carton Flow Rack Bay Pick Positions on an Aisle Right or
Left Side .......................................................................................................25
Order-Pick and Sort-Instruction Label ....................................................................25
Picker Instruction ........................................................................................26
Pick-Position Replenishment .......................................................................27
Replenishment Timing ................................................................................27
Deposit and Withdrawal Transaction Verification and Inventory
Tracking ......................................................................................28
Contents n vii
Pick and Order Fulfillment ..............................................................................................29
Customer-Order–Picked SKU Sorting ...................................................................29
Pack Activity ....................................................................................................................29
Customer-Order Pack Activity: Centralized and Decentralized ..............................30
Decentralized Customer-Order Pack Activity .............................................30
Centralized Packing ....................................................................................30
Shipping Carton Manifest ................................................................................................31
Package Load ....................................................................................................................31
Direct Fluid Load ....................................................................................................31
Shipping Carton Unitizing ......................................................................................31
Return Process ..................................................................................................................31
Warehouse Operation Drawings ......................................................................................32
Block Drawing ........................................................................................................32
Plan View ................................................................................................................33
Elevation View .........................................................................................................33
Detail View .............................................................................................................33
Warehouse Operation Review ..................................................................................33
Chapter 3
Warehouse Operation Interaction and Interface with a WMS Program ........35
Introduction .....................................................................................................................35
Host IT Computer ............................................................................................................35
WMS Program Computer ...............................................................................................36
WMS Program Commands ....................................................................................37
Standard Operational Commands and Procedures......................................37
Priority or Special Commands ....................................................................37
Location of Order Computer Preparation Activities ...............................................37
Warehouse Operation Computer ............................................................................38
Warehouse Operation Interaction and Interface with a WMS Program .................38
SKU Tracking File Location ...................................................................................40
Customer-Order Process ...................................................................................................41
Customer-Order Cancellation ................................................................................42
Canceling an Order in a Host Computer ....................................................42
Canceling an Order at a Warehouse Operation Pack Station ......................43
Canceling an Order at a Warehouse Manifest Station .................................44
Canceling an Order at a Warehouse Operation Central or
Remote Printer ............................................................................44
Special Order Handling ...........................................................................................45
Special Orders Added between the Host Computer and the
Warehouse Computer ...................................................................45
After the WMS Computer Process ..............................................................46
No Special Orders .......................................................................................46
Noncustomer Order Handling ...............................................................................46
Storage and Customer-Order Transaction Communication ....................................46
Warehouse Operation Communication: Component to Component ...........47
Warehouse Communication: Component to WMS Computer ....................47
viii n Contents
Vendor-SKU Delivery ..............................................................................................47
SKU Quantity or Pack Key ..........................................................................47
SKN and SKU Identification ......................................................................48
SKU Identification Number ........................................................................48
Warehouse Receiving Dock Identification: Tally Sheet and Labels ..............49
Host Computer and WMS SKU Inventory Classifications .....................................49
Available for Sale .........................................................................................49
Not Available for Sale ..................................................................................49
QA Hold ....................................................................................................50
Vendor Recall ..............................................................................................50
Stop Sales ....................................................................................................50
Order and SKU Quantity Preparation ........................................................50
Host Computer Order Acceptance ...............................................................51
WMS Computer Order Pool ........................................................................51
Order-Wave Creation ...................................................................................53
Order-Wave Planning ..................................................................................54
Order-Wave Characteristics .........................................................................54
Continuous Order Wave Flow .....................................................................54
Fixed Order Wave Flow ................................................................................55
Order Wave: Ensuring Optimal Warehouse Performance ........................................55
Order Numbers and Totes ............................................................................55
Multiple Orders per Tote .............................................................................56
One Order per Tote .....................................................................................56
Order Identification Sequence ......................................................................57
In-House Transport .....................................................................................58
Depositing an Identification SKU into a Position ........................................58
SKU Storage Transaction Files: Entry and Storage .......................................59
Storage Area Reorganization Strategies ....................................................................59
SKU Rotation ..............................................................................................61
Manufacturer Lot Numbers .........................................................................61
SKU-Identification Sequence in the Inventory Files .....................................61
SKU Storage Characteristics ........................................................................61
SKU Put-Away/Deposit Strategies or Philosophies .................................................62
SKU Popularity—Pareto’s Law (The 80/20 Rule) .......................................62
ABC Theory ................................................................................................62
Unload and Load Ratio ...............................................................................63
Round-Robin ..............................................................................................63
Family Group or Kit ...................................................................................63
Pallet or Master Carton Height ...................................................................63
Temperature Sensitive .................................................................................64
Security ....................................................................................................64
Toxic and Nonedible ...................................................................................64
Flammable ..................................................................................................64
Golden Highway (Power in One Aisle) ........................................................65
Power to the Front ........................................................................................65
SKU Inventory Digit Number ......................................................................65
Storage Design Vehicles ...........................................................................................65
Contents n ix
SKU Storage Put-Away or Withdrawal Transaction Type.............................65
Automated Storage Transaction....................................................................65
Manual Storage Transaction ........................................................................66
Separate Identification Label for Each SKU or Group .................................66
WMS SKU Identification Sequenced in the WMS Program Files ................67
Picked by Identification or Total SKUs ........................................................67
SKU Identification Options .........................................................................67
Identification or SKU Number for Each Storage/Pick Position ...................68
One SKU for Each Storage/Pick Position ....................................................69
Multiple SKUs for Each Location; Each SKU Location is a Separate
Storage/Pick Position ...................................................................70
Mixed SKUs for One Storage/Pick Location; No SKU Separation ..............71
Pick-to-Light, Sort-to-Light, or Automatic Pick Machine............................71
Picked SKU Depleted by an Order Pick Transaction ..................................72
Order SKU Depleted by a Separate Scan Transaction .................................72
SKU Withdrawal Activity.......................................................................................72
Master Carton or Pallet AS/RS Crane Transfer or Delivery Locations ........73
Delivery Station at an Aisle End ..................................................................73
Multiple Delivery Stations ...........................................................................73
SKU Position Priority ..................................................................................73
Pick Position ................................................................................................73
Ready-Reserve Position ................................................................................74
Remote-Reserve Position ..............................................................................74
Pick-Line Profile Frequency ..........................................................................74
Historical Sales Volume Pick-Line Profile ....................................................75
Day-by-Day Pick-Line Profile ......................................................................75
Pick-Line Slotting Activity ..........................................................................75
SKU Slotted on a Single Pick Line in a Single Pick Position ........................75
A SKU Slotted on One Pick Line in Two Separate Pick Positions ................76
Pick-Line or Pick-Area Layout and Profile Options .....................................77
SKU Remains in a Pick Position for One Order Wave or Release:
Volume and Physical Characteristics ...........................................77
Pick Cell and Pick Zone ..............................................................................78
Master-Carton Round Up/Round Down for Pick-Line
Setup/Replenishment ..................................................................79
Combined Family Group and ABC ............................................................79
Replenishment Employee Indicator .............................................................79
Replenishment Indicator: Hand-Held Scanner/Reader ...............................80
Flashing Light with a Scoreboard ................................................................80
Pick Position Allocation or Profile for Demand Pull SKUs or
Inventory Flow .............................................................................81
Fixed Position Allocation .............................................................................81
Order Wave, Daily, or Periodic Pick-Line Setup ...........................................81
Presetting Up a Pick Line Each Day or Customer Order Wave ...................82
Pick-Line Presetup for the Next Day or Order Wave ...................................82
Dual Pick-Line Order Balance ....................................................................83
Order SKU Quantity Pick-Line Balance .....................................................83
