Scribd
Upload
16 views25 pages

Storage management

The document outlines the principles and practices of storage and inventory management, emphasizing the importance of efficient space utilization, cost-effectiveness, and inventory accuracy. It covers key aspects such as warehouse management systems (WMS), inventory classification, control methods, and warehouse layout optimization. Additionally, it discusses future trends in WMS, including AI integration and automation, as well as strategies for maximizing storage space and improving workflow.

Uploaded by

Baishnab Padhi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
16 views25 pages

Storage management

The document outlines the principles and practices of storage and inventory management, emphasizing the importance of efficient space utilization, cost-effectiveness, and inventory accuracy. It covers key aspects such as warehouse management systems (WMS), inventory classification, control methods, and warehouse layout optimization. Additionally, it discusses future trends in WMS, including AI integration and automation, as well as strategies for maximizing storage space and improving workflow.

Uploaded by

Baishnab Padhi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 25

Unit-3

Storage Management System

Storage management is the systematic handling, movement,


control, and storage of materials within a warehouse or
distribution center. It ensures efficient space utilization,
cost-effectiveness, and inventory accuracy.
Key Aspects of Storage Management:
• ✅ Space Optimization: Maximizing warehouse capacity.
✅ Material Handling: Efficient movement of goods.
✅ Security & Safety: Preventing theft, damage, and loss.
✅ Automation & Technology: Use of Warehouse Management
Systems (WMS), RFID, and AI.
✅ FIFO & LIFO Principles: Ensuring goods are dispatched in
the correct order.
Storage Inventory Management

Inventory management is the supervision of non-


capitalized assets (inventory) and stock items. It
helps in maintaining optimal stock levels, minimizing
costs, and ensuring smooth operations.
Objectives of Inventory Management:
• 🔹 Ensure continuous availability of raw materials and
finished goods.
🔹 Reduce holding and ordering costs.
🔹 Avoid overstocking or stockouts.
🔹 Optimize supply chain efficiency.
Functions of Storage & Inventory

Function Description
Stores excess supply to meet demand
Buffering
fluctuations.
Stockpiling Reserves inventory for future use.
Helps in balancing supply and demand
Price Stabilization
fluctuations.
Ensures raw materials are available for continuous
Production Support
manufacturing.
Protects against stockouts and uncertainties in
Risk Management
supply.
Classification of
Inventory
Inventory can be
categorized based on its
role in the supply chain:
A. Based on Usage:
• 1️⃣Raw Materials: Used
in production.
2️⃣Work-in-Progress
(WIP): Semi-finished
goods.
3️⃣Finished Goods:
Ready for sale.
B. Based on Demand:
1️⃣Independent Demand
Inventory: Customer-driven
demand (e.g., finished products).
2️⃣Dependent Demand
Inventory: Demand based on
other products (e.g., raw materials).
C. Based on Functionality:
• 1️⃣Cycle Stock: Regular stock for
fulfilling orders.
2️⃣Safety Stock: Extra inventory to
handle demand fluctuations.
3️⃣Pipeline Stock: Goods in transit.
4️⃣Seasonal Stock: Inventory for
seasonal demands.
5️⃣Dead Stock: Obsolete items.
Methods of Method Description
Controlling Stock Economic Order
Calculates optimal
Levels Quantity (EOQ)
order quantity to
minimize costs.
Minimizes inventory
Efficient inventory Just-in-Time (JIT) by ordering goods only
when needed.
control methods
Inventory is reordered
help in reducing Reorder Point
when it reaches a
excess stock while (ROP)
predetermined level.
preventing Maintains extra stock
Safety Stock
shortages. Calculation
to manage demand
fluctuations.
Real-time tracking
Perpetual of stock movements
Inventory System using WMS and
RFID.
Always Better Control (ABC) Inventory System
ABC analysis classifies inventory based on value and impact:

Management
Category Characteristics
Strategy
A-Class (High 20% of items
Strict control,
Value, Low contributing to 80%
frequent monitoring.
Volume) of total value.
B-Class (Moderate 30% of items
Value, Moderate contributing to 15% Periodic monitoring.
Volume) of total value.
C-Class (Low 50% of items
Basic controls, bulk
Value, High contributing to 5%
ordering.
Volume) of total value.
Warehouse Management
Systems (WMS) – A
Complete Guide

• A Warehouse
Management System
(WMS) is software
designed to optimize
warehouse operations,
including inventory
management, order
processing, and logistics. It
enhances efficiency,
accuracy, and
productivity in modern
supply chains.
Functions of WMS
A WMS helps in:

✅ Inventory Tracking – Real-time monitoring of stock


levels.
✅ Order Management – Efficient picking, packing, and
shipping.
✅ Space Optimization – Maximizing warehouse storage
capacity.
✅ Automation & AI Integration – Reducing manual
errors with automation.
✅ Performance Analytics – Generating reports for
better decision-making.
2. Key Features of WMS

A. Inventory Control & Management


• RFID, Barcode Scanning, IoT for real-time tracking.
• FIFO (First-In-First-Out) and LIFO (Last-In-First-Out) stock
rotation.

B. Warehouse Layout Optimization


• Smart shelving & bin locations to reduce travel time.
• Slotting algorithms to place frequently used items closer
to picking areas.
C. Order Processing & Fulfillment
• Wave Picking – Groups orders for efficient retrieval.
• Zone Picking – Workers assigned to specific warehouse zones.
• Batch Picking – Picking multiple orders at once for efficiency.

D. Labor & Task Management


• Tracks workforce productivity.
• Assigns tasks based on real-time warehouse needs.

E. Integration with Supply Chain


• ERP (Enterprise Resource Planning) & TMS (Transportation
Management Systems) compatibility.
• Cloud-based solutions for multi-location warehouses.
3. Types of WMS

Type Description Example


Basic warehouse
Standalone WMS functionalities, no Small businesses.
integration.
Web-based access,
SaaS models (e.g.,
Cloud-Based WMS scalable, lower upfront
Oracle NetSuite).
costs.
Part of a larger ERP SAP, Microsoft Dynamics
ERP-Integrated WMS
system. 365.
Supply Chain- Connected with Blue Yonder, Manhattan
Integrated WMS transportation & logistics. Associates.
4. Benefits of WMS
• 🚀 Increased Efficiency – Reduces errors, speeds up
operations.📦 Better Inventory Accuracy – Prevents stock
discrepancies.💰 Cost Savings – Optimizes space, labor,
and resources.🌍 Enhanced Customer Satisfaction –
Faster & more accurate order fulfillment.
5. Challenges in WMS
Implementation
⚠ High Initial Costs – Requires investment in software &
infrastructure.
⚠ Complexity in Integration – Requires IT expertise for
ERP linking.
⚠ Workforce Training Needs – Employees need training to
adapt.
Future Trends in WMS
• 🔹 AI & Machine Learning: Predictive analytics for
demand forecasting.
🔹 Automation & Robotics: Drones, automated guided
vehicles (AGVs) for stock movement.
🔹 Blockchain in WMS: Secure and transparent
transactions.
🔹 5G & IoT-Enabled Warehouses: Faster
communication and real-time tracking.
Warehouse Layout & Space Optimization Guide

• A well-designed warehouse layout enhances


efficiency, storage capacity, and workflow
optimization. Proper data collection, space calculation,
and aisle width planning help in maximizing storage
utilization while ensuring smooth operations.
Warehouse Layout Planning

• Warehouse layout involves the strategic placement of


different areas to optimize space and workflow. A
standard warehouse includes:
✅ Receiving Area – Unloading and quality checks.
✅ Storage Area – Shelving, racking, bulk storage.
✅ Picking & Packing Area – Order fulfillment zones.
✅ Shipping Area – Loading docks and dispatch.
✅ Office & Admin Space – Control rooms,
management areas.
Types of Warehouse
Layouts

• 1️⃣U-Shaped Layout –
Efficient flow with receiving &
shipping on opposite ends.
2️⃣L-Shaped Layout – Ideal
for high-volume warehouses.
3️⃣Straight-Line Layout –
Linear movement, best for
automated warehouses.
Data Collection for Warehouse Design

• Before designing a warehouse layout, collect essential


data:
📌 Inventory Analysis: Type, size, weight, and storage
requirements of goods.
📌 Order Volume & Frequency: High-movement vs.
slow-moving stock.
📌 Equipment Requirements: Forklifts, conveyors, and
automation needs.
📌 Workforce & Shift Planning: Employee workstations
and movement paths.
Space Calculation & Optimization
To determine total storage space:

Example Calculation:
• Warehouse size: 10,000 sq. meters
• Storage utilization efficiency: 80%
• Average pallet area: 2 sq. meters
• Total storage capacity: (10,000×0.8)/2=4,000(10,000
\times 0.8) / 2 = 4,000(10,000×0.8)/2=4,000 pallets
B. Space Utilization Strategies
• ✔ Vertical Storage – Use multi-level racks to maximize
space.
✔ Dynamic Slotting – Store fast-moving items closer
to picking zones.
✔ Cross-Docking – Reduce storage needs by moving
goods directly from inbound to outbound.
Recommended Aisle Widths:

Width
Type of Aisle Best For
(Meters)
High-density
Narrow Aisles
1.5m - 1.8m storage, guided
(NA)
forklifts
Standard
Wide Aisles
3m - 3.5m forklifts, easy
(WA)
movement

Aisle Width Automated


Very Narrow
Calculation 1.2m - 1.5m systems, high-
Aisles (VNA)
rise racking
Formula to Calculate Aisle Width:
Aisle Width=Forklift Width+Turning Radius+Safety Cleara
nce

Example:
• Forklift width: 1.2m
• Turning radius: 1.8m
• Safety clearance: 0.3m
• Total Aisle Width = 3.3m
Finding Additional Space in the Warehouse
🔍 Space Optimization Techniques:
✔ Reduce Aisle Width: Implement narrow aisle racking.
✔ Use Mezzanine Floors: Add additional levels for
storage.
✔ Stacking Height Optimization: Adjust racking
heights to accommodate taller pallets.
✔ Implement Dynamic Storage Systems: Use mobile
racking or vertical carousels.
✔ Rearrange Workstations: Remove unnecessary
space in picking and packing areas.

You might also like