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Warehousing (หลั�กการแลัะเคร��องมื�อช่�วยว�เคราะห�)
โดย: ผศ.ดร.บรรหาญ ลิ ลิา
ภาควิ ชาวิ ศวิกรรมอุ�ตสาหการ คณะวิ ศวิกรรมศาสตร� มหาวิ ทยาลิ�ยบ�รพา
Roles and Connections
nth tier (n-1)th tier 1st tierManufacturing
Systems(include PACKING)
Warehousing
Component Parts, Raw Materials,Consumable parts, etc.
Component Parts, Raw Materials,Consumable parts, etc.
Component Parts, Raw Materials,Consumable parts, etc.
Finished Products
Supplier Chain
Customers
Supply Chain & Logistics
SuppliersMaterials,
parts,subassembliesand services
Inventory
ProducersFinished
goods, endproducts, and
services
Inventory
DistributorsPackage and
delivery
Inventory
CustomersTotal
satisfaction with(Quality, price,
delivery andservices)
Inventory
Productand
Services
Productand
Services
Productand
Services
INFORMATION
CASH
Why holding inventory/ What are the role of warehouse in supply chain?
Why holding inventory?
What are the role of warehouse in supply chain?
The VALUE CHAIN
Firm Infrastructure
Human Resource Management
Technology development
Procurement
Inbound
LogisticsOperations
Outbound
Logistics
Marketing
and
Sales
Service
M
A
R
G
I
N
Strategic aspects of Business
Production Product Suppliers Customers
Customer Value
Customer Value• Quality
• Service
• Cost
• Lead Time
• Innovation
• Safety
• Environmental care
Competitive Priority• Quality
• Service
• Cost
• Lead Time
• Innovation
• Safety
• Environmental care
Quality
“performing right the first time and every time”
• Meeting customer requirements
• Fitness for purpose
• Minimum variance
• Eliminate waste
• Continuous improvement culture
Service
“continually meeting the customer needs as the market changes”
• Support availability
• Product availability
• Flexibility
• Reliability
• Consistency
Cost
“knowing the real costs and looking at how to reduce them”
• Design of product
• Manufacturing process
• Distribution process
• Administration process
• Stock levels
Lead time
“knowing the real lead times and looking at how to reduce them”
• Time to market
• Time from order placement to the time it available to customer
• Response to market forces
• Days of stock cover
Set of Questions for a Manager
Do you need a warehouse ? Where should it be located? Are all the future supply and demand
requirements known? Is the labor cost stable? What products should be kept and how to
store and handle them? What is the target customer response time?
Set of Questions for a Manager
What is our current customer response time? Do you know the product location and does
your information accurate? Is the layout optimal? What are the operational standard? Should you outsource or manage it yourself? Etc…
Storage and warehousing
Aspects of focus• Space requirement
• Location
• Layout
• Storage systems
• Material handling equipment
• Demand characteristics
• Operations
Space Requirement
Space for products, component parts, raw materials, consumables, material handling equipment, operator moving, load-unloading, buffers, shelves, isles, personnel.
Dependent on:• Type of equipment for handling
• Quantity of items and duration of stay
• Storage policy
Location
Where should the warehouse be built? How many warehouse must be built? How large should each warehouse be? What are the factors of concern?
(location of manufacturing, customer bases, desire service level, renting or leasing, land cost, construction cost, taxes and insurance, etc.)
Layout
Inputs• Storage policy
• Demand characteristics
• Material handling equipment
• Costs
• Types of products
Layout
Approaches• Systematic Layout Planning (SLP)
• Mathematical models
• Basic and advanced algorithms
Layout
Models• Single row layout
• Multi-row layout with equal areas
• Multi-row layout with unequal areas
• Mixed integer model
• etc
Algorithms• Heuristic Algorithm
Storage Systems
Dedicated storage location policy Randomized storage location policy Class-based dedicated storage policy Share storage policy Etc.
Material Handling Equipment
Unit load design Types of MHD
• Conveyors
• Palletizers
• Pallet lifting devices
• Trucks
• Robots
• Automated Guided Vehicles (AGVs)
• Jibs, Cranes and hoists
• Warehouse material handling systems (WMHSs)
Demand Characteristics
Investigation of the demands of all items to be stored in a warehouse in order that the layout, equipment systems can designed accordingly.
Aspects• How many for each item to be stored?
• How long each item will stay?
• What is a T/S ratio?
Warehouse Operations
Receiving Put away/Storage Order Processing ---Picking Dispatching
Software in layout/warehouse modeling
CORELAP CRAFT BLOCPLAN FactoryOPT SPIRAL LayOPT
Transportation Model (problem)
Transportation model: is a type of application of optimization models generally found in the area of “Operations Research”
Problem Characteristics:• Product is transported from a number of sources to a
number of destinations at minimum possible cost.
• Each source has fixed and limited supply while each destination has fixed demand.
Supply Chain Management
Supply Chain
All facilities, functions, activities, All facilities, functions, activities, associated with flow and transformation associated with flow and transformation of goods and services from raw materials of goods and services from raw materials to customer, as well as the associated to customer, as well as the associated information flowsinformation flows
An integrated group of processes to An integrated group of processes to “source,” “make,” and “deliver” products“source,” “make,” and “deliver” products
Supply Chain Processes
Value vs. Supply Chain
Value chain• every step from raw materials to the eventual end user
• ultimate goal is delivery of maximum value to the end user
Supply chain• activities that get raw materials and subassemblies
into manufacturing operation Terms are used interchangeably
Supply Chain Management (SCM)
Managing flow of information through supply chain in order to attain the level of synchronization that will make it more responsive to customer needs while lowering costs
Keys to effective SCM• information• communication• cooperation• trust
Supply Chain Uncertainty
One goal in SCM:• respond to uncertainty in
customer demand without creating costly excess inventory
Negative effects of uncertainty• lateness• incomplete orders
Inventory• insurance against supply
chain uncertainty
Factors that contribute to uncertainty• inaccurate demand
forecasting• long variable lead times• late deliveries• incomplete shipments• product changes batch
ordering • price fluctuations and
discounts• inflated orders
Bullwhip Effect
Occurs when slight demand variability is magnified as information moves back upstream
Information Technology: A Supply Chain Enabler Information links all aspects
of supply chain E-business
• replacement of physical business processes with electronic ones
Electronic data interchange (EDI)• a computer-to-computer
exchange of business documents
Bar code and point-of-sale• data creates an
instantaneous computer record of a sale
Radio frequency identification (RFID)• technology can send
product data from an item to a reader via radio waves
Internet• allows companies to
communicate with suppliers, customers, shippers and other businesses around the world, instantaneously
Supply Chain Integration Information sharing among supply chain members
• Reduced bullwhip effect• Early problem detection• Faster response• Builds trust and confidence
Collaborative planning, forecasting, replenishment, and design• Reduced bullwhip effect• Lower Costs (material, logistics, operating, etc.)• Higher capacity utilization• Improved customer service levels
Coordinated workflow, production and operations, procurement• Production efficiencies• Fast response• Improved service• Quicker to market
Adopt new business models and technologies• Penetration of new markets• Creation of new products• Improved efficiency• Mass customization
Supply Chain Integration (cont.)
Collaborative Planning, Forecasting, and Replenishment
Process for two or more companies in a supply chain to synchronize their demand forecasts into a single plan to meet customer demand
Parties electronically exchange• past sales trends• point-of-sale data• on-hand inventory• scheduled promotions• forecasts
Suppliers
Procurement• purchase of goods and services from suppliers
On-demand (direct response) delivery• requires supplier to deliver goods when
demanded by customer Continuous replenishment
• supplying orders in a short period of time according to a predetermined schedule
Cross-enterprise teams coordinate processes between company and supplier
Outsourcing
Sourcing• selection of suppliers
Outsourcing• purchase of goods and services from an outside
supplier Core competencies
• what a company does best Single sourcing
• a company purchases goods and services from only a few (or one) suppliers
Distribution
Encompasses all channels, processes, and Encompasses all channels, processes, and functions, including warehousing and functions, including warehousing and transportation, that a product passes on its transportation, that a product passes on its way to final customerway to final customer
Often called logisticsOften called logistics LogisticsLogistics
transportation and distribution of goods transportation and distribution of goods and servicesand services
Driving force today is speedDriving force today is speed Particularly important for Internet dot-comsParticularly important for Internet dot-coms
Distribution Centers (DC)and Warehousing
DCs are some of the largest business DCs are some of the largest business facilities in the United Statesfacilities in the United States
Trend is for more frequent orders in Trend is for more frequent orders in smaller quantitiessmaller quantities
Flow-through facilities and automated Flow-through facilities and automated material handlingmaterial handling
PostponementPostponement final assembly and product configuration final assembly and product configuration
may be done at the DCmay be done at the DC
Warehouse Management Systems
Highly automated system that runs day-to-day Highly automated system that runs day-to-day operations of a DCoperations of a DC
Controls item putaway, picking, packing, and Controls item putaway, picking, packing, and shippingshipping
FeaturesFeatures transportation managementtransportation management order managementorder management yard managementyard management labor managementlabor management warehouse optimizationwarehouse optimization
Vendor-Managed Inventory
Manufacturers generate orders, not distributors or Manufacturers generate orders, not distributors or retailersretailers
Stocking information is accessed using EDIStocking information is accessed using EDI A first step towards supply chain collaborationA first step towards supply chain collaboration Increased speed, reduced errors, and improved Increased speed, reduced errors, and improved
serviceservice
SCM Software
Enterprise Resource Planning (ERP)• software that integrates components of a
company by sharing and organizing information and data
• SAP was first ERP software
• mySAP.com • web enabled modules that allow collaboration
between companies along the supply chain
Measuring Supply Chain Performance
Key performance indicators• inventory turnover
• cost of annual sales per inventory unit
• inventory days of supply
• total value of all items being held in inventory
• fill rate
• fraction of orders filled by a distribution center within a specific time period
Inventory turns =Inventory turns =Average aggregate value of inventoryAverage aggregate value of inventory
Cost of goods soldCost of goods sold
Average aggregate value of inventory =Average aggregate value of inventory =
==(average inventory for item (average inventory for item ii)) X (unit value item X (unit value item ii))
Days of supply =Days of supply =(Costs of goods sold)/(365 days)(Costs of goods sold)/(365 days)
Average aggregate value of inventoryAverage aggregate value of inventory
Key Performance Indicators
Key Performance Indicators: Example
Inventory turns =Inventory turns =$34,416,000$34,416,000
$425, 000, 000$425, 000, 000
Days of supply =Days of supply =($425,000,000)/(365)($425,000,000)/(365)
$34,416,000$34,416,000
= 12.3= 12.3
= 29.6= 29.6
1. Cost of goods sold: $425 million
2. Production materials and parts: $4,629,000
3. Work-in-process: $17,465,000
4. Finished goods: $12,322,000
5. Total average aggregate value of inventory (2+3+4): $34,416,000
Other Measures of Supply Chain Performance
Process Control• used to monitor and control any process in
supply chain
Supply Chain Operations Reference (SCOR)• establish targets to achieve “best in class”
performance
SCOR Model Processes
Plan
Develop a course of action that best meets sourcing, production and delivery requirements
Source
Procure goods
and services to
meet planned
or actual
demand
Make
Transform
product to a
finished state to
meet planned
or actual
demand
Deliver
Provide products
to meet demand,
including order
management,
transportation
and distribution
Return
Return
products,
post-delivery
customer
support
Number of days to achieve an unplanned 20% change in orders without a cost penalty
Production flexibility
Number of days for supply chain to respond to an unplanned significant change in demand without a cost penalty
Supply chain response time
Supply Chain Flexibility
Number of days from order receipt to customer delivery
Order fulfillment lead time
Supply Chain Responsiveness
Percentage of orders delivered on time and in full, perfectly matched with order with no errors
Perfect order fulfillment
Percentage of orders shipped within24 hours of order receipt
Fill rate
Percentage of orders delivered on time and in full to the customer
Delivery performance
Supply Chain Delivery Reliability
DefinitionPerformance Metric
Performance Attribute
SCOR: Customer FacingSCOR: Customer Facing
DefinitionPerformance Metric
Performance Attribute
SCOR: Internal FacingSCOR: Internal Facing
Revenue divided by total assets including working capital and fixed assets
Asset turns
Number of days that cash is tied up as inventoryInventory days of supply
Number of days that cash is tied up as working capital
Cash-to-cash cycle time
Supply Chain Asset Management Efficiency
Direct and indirect costs associated with returns including defective, planned maintenance and excess inventory
Warranty/returns processing cost
Direct material cost subtracted from revenue and divided by the number of employees, similar to sales per employee
Value-added productivity
Direct cost of material and labor to produce a product or service
Cost of goods sold
Direct and indirect cost to plan, source and deliver products and services
Supply chain management cost
Supply Chain Cost