MSc.

Do Thi Phuong Nam

Warehouse Warehouse
management
systems
Warehouse layout Storage
management

Lesson
management contents
Do Thi Phuong Nam, MSc.
Case study: Let Case study: The
There Be Light Adelaide Dairy
Lamp shade company
Company

1 2

Why does a company need a WMS?

01 Warehouse
management Stock-control systems Warehouse management systems

systems
 manage the inventory at stock  manage productivity within the
location and quantity level warehouse

The potential benefits of having a WMS in place include the following:

1. real-time stock visibility and 6. reductions in returns;
traceability; 7. accurate reporting;
2. improved productivity; 8. improved responsiveness;
3. accurate stock; 9. remote data visibility;
4. reduction in mis-picks; 10.improved customer service;
5. automatic replenishments; 11.minimized paperwork.

3 4
1
MSc. Do Thi Phuong Nam

Selecting the right WMs What to look for in a system

Ability to
Form a project team. interface
1 5
Standard
with other system
Define, record, review and improve current processes. systems
Meets
Modular and
Create a list of key functions required for the new system. scalable 2 6 specific
needs
Incorporate any future growth plans in your specification.
Capable of
List the benefits to your company of a WMS. supporting
Accessible 3 7 warehouse
best practice
Research and approach a select number of vendors with experience.
Ease of Reporting
Visit reference sites to look at operational effectiveness and discuss the benefits. operation 4 8 capabilities

Produce a return on investment (ROI) report.

5 7

Selecting a partner who:

has experience
02 Warehouse
layout
has longevity
know how to emphasize the benefits of the software, not just the features
supply the installation, training, maintenance and help-desk service
maintain research and development, future product enhancements
is comfortable working with
is willing to receive modifications
has resources
is available to give a help
has established partnerships with hardware providers

8 9
2
MSc. Do Thi Phuong Nam

Space calculations:
Areas within Receipt and despatch areas
the warehouse • Formula to calculate the likely space requirement for staging vehicles on arrival and
• receiving area;
departure:
• quarantine and inspection area;
• reserve storage area; 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑙𝑜𝑎𝑑𝑠 × ℎ𝑜𝑢𝑟𝑠 𝑡𝑜 𝑢𝑛𝑙𝑜𝑎𝑑
𝑆𝑝𝑎𝑐𝑒 = [𝑟𝑜𝑢𝑛𝑑 − 𝑢𝑝 ] × (𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑙𝑙𝑒𝑡𝑠 × 𝑠𝑝𝑎𝑐𝑒 𝑝𝑒𝑟 𝑝𝑎𝑙𝑙𝑒𝑡)
• carton-picking area; 𝑇𝑖𝑚𝑒 𝑜𝑓 𝑠ℎ𝑖𝑓𝑡
• item-pick area;
• If we receive 20 vehicles per day, 26 pallets per load with a pallet size of 1.2
• value-adding services area;
metres by 1.0 metres and it takes 45 minutes per load to unload and 30 minutes
• packing area;
per load to check and we operate an eight-hour shift.
• despatch area;
No. of loads = 20 vehicles/day
• cross-dock area; Time to unload = 45 minutes
• empty pallet and packaging storage area; Time to check = 30 minutes
 Time to complete unloading = 45+30 = 75 minutes = 1.25 hours
• MHE charging areas;
No. of pallets = 26 pallets
• warehouse offices; Space per pallets = 1.2×1 = 1.2 square meters (20 × 1.25)
𝑃𝑎𝑙𝑙𝑒𝑡 𝑓𝑙𝑜𝑜𝑟 𝑠𝑝𝑎𝑐𝑒 = × 26 × 1.2 = 124.8 𝑚
• restrooms. Time of shift = 8 hours 8

10 11

Space calculations - Practice Space calculations - Practice

Receipt and despatch areas Receipt and despatch areas
• The CFS warehouse located in Tan Cang has to receive about 70 trucks • The FedEx storage located in the US has to receive about 10 containers
every day. When the trucks arrive, the staff must complete a process in every 5 hours a day. When the containers arrive, the workers must
3 stages. They usually take around 7 minutes to confirm the condition of complete a process in several stages. They usually take around 5
seals, 30 minutes to unload, and then 20 minutes to report the goods minutes to confirm the condition of seals, 16 minutes to overall check,
to customs. 57 minutes to unload, and then 12 minutes to record the goods to
• On average, a truck will carry a number of goods equivalent to 30 customs.
pallets with dimensions of 1.1 meters by 1.1 meters. • On average, a containers will carry a number of goods equivalent to 20
• The staff work in shifts and one shift has a rotation of 12 hours. pallets with dimensions of 1.1 meters by 1.2 meters.
Let’s calculate the space of receipt and despatch for the CFS warehouse. • The staff work in shifts and one shift has a rotation of 10 hours.
Let’s calculate the space of receipt and despatch for the FedEx storage.

12 14
3
MSc. Do Thi Phuong Nam

Space calculations: Space calculations:

Storage space Storage space
• Aisle width: 3.0 metres
• Pallet size: 1.20 metres length × 1.00 metre width
• Formula to calculate the number of pallets that can be stored within a given cubic
area when using standard adjustable pallet racking:
• Width of upright: 0.12 metre
• Clearance (sides): 0.10 metre (No. of width modules × pallets in a module width) × (no. of length modules × pallets
• Clearance (height): 0.15 metre in module length) × no. of height modules
• Clearance back-to-back pallets: 0.10 metre In which:
• Racking beam height: 0.14 metre
• Module width = width of aisle + 2 pallet width + clearance between back-to-back
• Height of goods: 1.20 metres
pallets
• Height of pallet: 0.15 metre
• Warehouse height: 10 metres • Module length = width of upright + 3 × clearance + 2 pallets length
• Storage area length: 120 metres • Module height = height of pallet + clearance above pallet + racking beam height
• Storage area width: 48 metres
Given that 1 module can carry 2 pallets in
width and 2 pallets in length.

16 17

Space calculations: Space calculations - Practice

Storage space Storage space
• Aisle width: 3.0 metres • Height of pallet: 0.15 metre • Aisle width: 2.0 metres
• Pallet size: 1.20 metres length × 1.00 metre width • Warehouse height: 10 metres • Pallet size: 1.10 metres length × 1.10 metre width
• Width of upright: 0.12 metre • Storage area length: 120 metres • Width of upright: 0.16 metre
• Clearance (sides): 0.10 metre • Storage area width: 48 metres • Clearance (sides): 0.09 metre
• Clearance (height): 0.20 metre
• Clearance (height): 0.15 metre • Module width = 3.0 + 2 + 0.1 = 5.1 metres
• Clearance back-to-back pallets: 0.15 metre
• Clearance back-to-back pallets: 0.10 metre • Module length = 0.12 + 0.3 + 2.4 = 2.82 metres
• Racking beam height: 0.20 metre
• Racking beam height: 0.14 metre • Module height = (1.2 + 0.15) + 0.15 + 0.14 = 1.64
metres • Height of goods: 1.40 metres
• Height of goods: 1.20 metres
• Height of pallet: 0.15 metre
Number of width modules = 48 ÷ 5.1 = 9.4 ~ 9 modules • Warehouse height: 15 metres
Number of length modules = 120 ÷ 2.82 = 42.6 ~ 42 modules
• Storage area length: 140 metres
Number of height modules = 10 ÷ 1.64 = 6.1 ~ 6 modules
• Storage area width: 58 metres
Given that 1 module can carry 2 pallets in width and 2 pallets in length:
Given that 1 module can carry 2 pallets in width and 3 pallets in length. Calculate the storage space in this warehouse.
(No. of width modules × pallets in a module width) × (no. of length modules × pallets in module length) × no. of height modules
Total pallet capacity = (9 × 2) × (42 × 2) × 6 = 9072 pallets

18 19
4
MSc. Do Thi Phuong Nam

03 Storage Block stacking

management
• Warehouse height is low
• Goods are packed in unit loads
and stacked on the floor to their
maximum safe height and
budgets are tight
• Storing in large quantities of
single SKU products
• Items can only be despatched on
a LIFO (last in, first out) basis.

21 22

Racked storage Racked storage

• Wide aisle or selective pallet racking Double-deep racking
• Double-deep racking
• Narrow aisle racking
• Drive in/drive through racking
• Pallet flow/ live storage
• Push-back racking
• Mobile racking
• Satellite racking or shuttle-racking Wide aisle or selective pallet racking
Narrow aisle racking

23 24
5
MSc. Do Thi Phuong Nam

Racked storage Racked storage

Mobile racking

Drive in/drive through racking

Pallet flow/ live storage

Push-back racking
Satellite racking or shuttle-racking

25 26

03 1. What does Let There Be 2. What is the demand of their 3. How many kinds of lamp
03
Lamp Shade (LTBLS) recent customer? shades that LTBLS produce?
Company do? Who are their Summarize some information 1. What is the 2. Where is their 3. Describe the 4. Based on their

Case study:
target markets? about their products. product of Adelaide new market? Why journey of achievement, they
Dairy (ADC) is it considered to shipments of ADC are considering and
Company? What is be an Company to serve planning a delivery

Let There Be Light Case study: their current target

market?
achievement? the new market.
What is the
requirement of the
strategy based on
3 options. List
down noticeable

Lamp shade The Adelaide Dairy journey? data and costs in

each option.

Company 4. Describe the journey of

LTBLS’s products to the
5. List down 3 types of costs
related to transportation
company
recent market. What is the issues of LTBLS.
transportation requirement for
LTBLS’s shipment?

27 28
6
MSc. Do Thi Phuong Nam

“Trade isn’t about

goods. Trade is
about information.
Goods sit in the
warehouse until
information moves
them”
- C J Cherryh -

29