• 1. CHAPTER 11 Materials Handling, Computerization and Packaging
    • 2. Materials Handling Equipment - ManualRacks Conventional pallet racks Drive-in racks Drive-through racks High-rise racks Cantilever racks Pallet stacking frames Stacking racks Gravity-flow racksShelving Drawers Mobile racking or shelvinga
    • 3. Materials Handling Equipment - AutomatedUnit load AS/RS Car-in-lane Miniload AS/RS Horizontal carousels Vertical carousels Man-ride machines11-2 b
    • 4. Advantages of Automated Materials Handling SystemsOperating cost savings Improved service levels Increased control through more and better information11-3
    • 5. Disadvantages of Automated Materials Handling SystemsInitial capital costs Downtime of equipment Maintenance interruptions Software-related problems Capacity problemsLack of flexibility Maintenance cost User interface/ training Worker acceptance Obsolescence11-4
    • 6. Operational and Implementation Problems with Warehouse Automation SystemsProblem AreaPercent MentioningCost of equipment/financial justification Downtime or reliability of equipment/maintenance interruptions Software-related problems, such as poor documentation, incompatibility, failure or modification Capacity problems, such as limited applications/integration of equipment into existing system Lack of flexibility to respond to changing environment/not suitable for high degree of seasonality in business Maintenance cost/ maintenance parts User interface/training to operate system/transition from manual to automated procedure Worker acceptance of automation No problems/ we are adapting well Lack of top management commitment Obsolescence/ need more up-to-date automation/ need more automation19.0% 10.0 8.0 8.0 6.0 5.0 5.0 4.0 4.0 3.0 3.0 11-5
    • 7. Warehousing in a JIT EnvironmentTotal commitment to quality Reduced production lot sizes Elimination of non-value-added activities11-6
    • 8. Functions of PackagingMarketing Information PromotionLogistics Containment Protection Apportionment Unitization Convenience Communication11-7
    • 9. Benefits of Good PackagingLighter packaging may save transportation costs. Careful planning of packaging size/cube may allow better space utilization. More protective packaging may reduce damage and requirements for special handling. Environmentally conscious packaging may save disposal costs and improve the company’s image. Returnable containers provide cost savings and environmental benefits.11-8
    • 10. Technologies of the Modern WarehouseWarehouse management systems (WMSs) Radio frequency communication and inventory update Bar-code reading and label generation equipment EDI and the Internet Transportation management systems Interface to enterprise requirements planning (ERP) systems Productivity tracking software Activity-based costing software11-9
    • 11. Information Flows in the Supply ChainSupplier communication Manufacturer communication Warehouse communication Carrier communication Customer communication SupplierCarrierInbound carrierCustomerManufacturerSupplier warehouseSupplier warehouseOrder (or complaint) informationOrder/complaintDelivery informationAppointment informationOrder informationPickup scheduleSource: Arnold Maltz, the Changing Role of Warehousing (Oak Brook,IL: Warehousing Education and Research Council, 1998), p. 27. 11-10