why warehouse?

Why Warehouse?It needs • Space• Labor • Equipment • Storage material • Software and support• other so many costs

Why cannot we ship the goods directly from manufacturing plants to customers?

Significance of a warehouse in the company’s supply chain:http://www.youtube.com/watch?v=iBp_BofrcGA

http://www.youtube.com/watch?v=iBp_BofrcGA

Why Warehouse?

To better match supply with customer demand:• Demand-Supply variations• Seasonality changes (Toys at Christmas)• Unreliable transportation (China to US)• Price break due to bulk purchase• Buffer against excess demand (Epidemic)

• Consolidate Products:• Reduce transportation costs (Cater to thousands of stores and customers)• Customizations Storage for frozen goods at SL Room design at RH

Kitting at Hanes BrandsComputer assembly at Dell

• Pricing and Labeling

Why Warehouse?

Types of Warehouses

• Supply Driven – Component /sub-assembly/ Tools• Demand Driven – Distribution Centers

• Retail Distribution Center: Supplies product to retail stores • Service Parts Distribution Center: Hold spare parts for extensive capital equipment • Catalog fulfillment or e-commerce distribution: Orders received by individuals over

phone, internet. • 3PL warehouse: Third Party logistics to service multiple customers from one location • Perishable/Hazardous Materials: Perishable or inflammable or live stocks goods that

need special attention

Material FlowIn context of the Supply Chain:

A sequence of processes (chain) through which the product moves (gets supplied) from its origin to the customer.

A warehouse is a storage tank along the pipeline.

1. Keep the product moving; avoid starts and stops which means extra handling and space requirements2. Avoid layouts that impede smooth flow3. Identify and resolve bottlenecks to flow

Units of Handling

Although, we have used the fluid model for analogy, the product is not indivisible in reality. It flows more like sand, gravel, rocks and boulders. • Stock Keeping Unit (SKU): It is the smallest physical unit of a product that is

tracked by an organization• It may be a box of paper clips or a small paper clip itself.

Units of HandlingUpstream in the supply chain, product generally flows in larger units such as pallets and is successively broken down into smaller units as it moves downstream.

Units of Handling

• Factory to Regional DC: Pallet Loads• Regional DC to Local DC: Case Loads• Local DC to Stores: Inner Packs• Local DC to Consumers: Pieces

• Additional Terminologies:• License Plate Number (LPN): Identify the pallet• Tote: A bucket like object used to pick orders• CHEP: A third Party/ outside pallet that does not belong to DC• Manifest/Parcel: A small package usually shipped out of UPS/FedEx (Samples)

Units of Handling

SKUItem CanItem Suffix ZeroColor Black/Brown/Blue/Grey/WhiteColor Suffix Light/DarkDimensionQualitySize 350

Units of Handling

SKUItem BottleItem Suffix ZeroColor Blue/Grey/BlackColor Suffix Light/DarkDimensionQualitySize 500

Units of Handling

UOM Pack of 5:

Carton with inner pack

Units of Handling

Carton with loose quantity

Pallet

Units of Handling

Pallets stacked in the warehouse

Warehouse Layout

Area/Zone/Aisle/Bay/Level/Position/Sequence

LocationsPKMS has mainly 3 types of locations:• Reserve Locations• Case Pick Locations• Active Locations

Other location types• Pick Up and Drop Off (P&D)• Quality and Rework (QA/QH)• Shipping Lane (SHL)• Very Narrow Aisle (VNA)• Pallet Storage (Single Deep/ Double Deep)• Loose or Active storage• Carousels (CAR)• Floor (FLR)• Racks• Docks/Doors (DOCK/DOOR)

LocationsDedicated locations: Each Storage location is reserved for an assigned product and only that product may be stored there.• Pros: Store popular products in convenient locations, pickers can learn and pick efficiently• Cons: It does not use the space efficiently. If the demand for that SKU drops, the locations

remain empty for longer time or demand exceeds, we cannot assign it to a new location. Shared (Mixed SKU) locations: Each storage location can be used to store multiple products• Pros: If a location becomes empty, it is available for reassignment to another product. • Cons: Workers cannot learn locations. They need rely on WMS to direct to the right location.

There is need for a disciplined approach as there might be a tendency to pick from nearest location.

A decision:• Pick from a least filled location so as to empty it sooner• Pick from a nearest location so as to save time and labor

Equipment• Warehouses will operate varied equipment and their selection is determined from the

products being handled and stored, coupled with an objective operational methodology.• There are mainly 2 types of equipment, one that move the products like MHE, Fork-lift trucks

and one that is used for the storage of products like racks and shelves.• These both types exists side by side and are compatible.

Fork-Lift Trucks: This is the “work horse” of most warehouses. Type Lift Capacity Height Application

CBT (Counter Balanced Truck) 3 tons / 7 meters Indoor and Outdoor

RT (Reach Truck) 2 tons / 11 meters Indoor (Racking)

NAT (Narrow Aisle Truck)(Turret/Mast Trucks)

1.5 tons / 15 meters Indoor (Racking)

HPT (Hand Pallet Truck) 1 tons / 8 cm Indoor

PPT (Powered Pallet Truck) 3 tons / 8 cm Indoor

MRPT (Multi Riser Pick Truck) 1.5 tons / 10 meters Indoor (Order pick from height)

AFT (Articulated Fork Truck) 2 tons / 11 meters Indoor and outdoor racking

A Fork Lift Truck

RF Gun

Warehouse Operations• A warehouse typically reorganizes and repackages the product. • Product typically arrives packaged at a larger scale and leaves packaged on a smaller scale• An important function of the warehouse is to break down large chunks of product and

redistribute it in smaller quantities.For example, SKU arrives from vendor in pallets and shipped out as eaches.

• Smaller the handling unit, larger is the cost due to labor.• In short they receive bulk shipments, stage them for quick retrieval, and then in response to

customer requests retrieve and sort SKU’s and ship them out to customers.-------------------------------• A general rule is that the product should as much, flow continuously through this sequence of

process.• Each time it is put down means that it must be picked up again sometime later, which is double-

handling. When such double-handling is summed over all the tens-of-thousands of SKU’s and hundreds-of-thousands of pieces and/or cases in a warehouse, the cost can be considerable.

• Another rule is that product should be scanned at all key decision points to give “total visibility of assets”, which enables quick and accurate response to customer demand.

Warehouse OperationsThe re-organization of the product takes place through the following physical processes:

Inbound Process• Receiving

• Put-Away

Outbound Process• Order Picking

• Checking, Packing, Shipping

Warehouse Operations (INBOUND)Receiving: (10% of work load – Indicator of volume of tickets)

• Advance Notification of Goods (ASN) to allow DC to schedule receipt of goods• Unloading of product and staged for put-away• Inspection and quality audits• Mixed pallets sorted out into single SKU pallets

Put-Away: (15% of work load)

• Determination of appropriate storage location. This is important as this decides how quickly and at what cost you later retrieve it for a customer

• Scanning of location when item is put-away• This is important as product needs to be moved to a considerable distance to its

storage locationhttp://www.youtube.com/watch?v=ZN6--Xi5lKo

http://www.youtube.com/watch?v=ZN6--Xi5lKo

Warehouse Operations (OUTBOUND)Order Waving and Picking: (55% of work load)On receipt of a customer order the warehouse must perform checks such as verifying that inventory is available to ship. Then the warehouse must produce pick lists to guide the order-picking. Finally, it must produce any necessary shipping documentation and schedule the order-picking and shipping.

Waving• The outbound processes of the warehouse are initiated by receipt of a customer order, which may be thought of as a

shopping list. Each entry on the list is referred to as an order-line and typically consists of the item and quantity requested. The warehouse management system (WMS) then checks the order against available inventory and identifies any shortages. In addition, the WMS may re-organize the list to match the layout and operations of the warehouse for greater efficiency.

For example, if a customer has ordered 15 of a particular item, the warehouse management system (WMS) may check to see how the item is packaged. If 12 of the item comprise a carton, the WMS may convert the order-line for 15 eaches to two pick-lines, one for 1 carton and the other for 3 eaches. In many warehouses, each-picking and carton-picking are separate processes, and the pick-lines are diverted appropriately.• The WMS organizes pick-lines into pick-lists to achieve still more efficiencies, so that an order-picker may be able to

concentrate on one area of the warehouse and so reduce travel. In addition, the WMS may sequence the pick-lines so that the locations to be visited appear in the sequence in which they will normally be encountered as the picker moves through the warehouse.

http://www.youtube.com/watch?v=G3GOXR-pXrw



Warehouse Operations (OUTBOUND)Order Waving and Picking: (55% of work load)PickingRF:• The pick-list may be a physical sheet of paper, or merely a sequence of requests communicated by

a stream of printed shipping labels, or by light, RF, or voice transmission.

Picking Types:• The most labor-intensive order-picking is the picking of less-than-carton quantities, referred to

typically as broken-case or split-case picking. Broken-case picking is labor intensive because it requires handling the smallest units of measure in the warehouse and this is generally resistant to automation because of the size and variety of SKU’s to be handled.

• In contrast, carton-picking (picking full cartons) can sometimes be automated because of the relative uniformity of cartons, which are almost always rectangular and packed to resist damage.

Warehouse Operations (OUTBOUND)Order Waving and Picking: (55% of work load)PickingPicking Strategies:Batch Order (Generate pick-lists) SKU Wise:

Pros

• Pick density can be increased, at least locally, by storing the most popular SKU’s together. Then order-pickers can make more picks in a small area, which means less walking.

Cons• Worker retrieves many orders in one trip. However, this requires that the items be sorted into

orders either while picking or else downstream. While Picking - they must carry a container for each order and they must sort the items as they pick, which is time-consuming and can lead to errors

• Down Stream - If the items are sorted downstream, space and labor must be devoted to this additional process. In both cases even more work and space may be required if, in addition, the orders themselves must be sorted to arrive at the trailer in reverse sequence of delivery.

Warehouse Operations (OUTBOUND)Order Waving and Picking: (55% of work load)PickingPicking Strategies:Batch Order (Generate pick lists) Line Wise:

Pros

• These orders are easy to manage since there is no need to sort while picking and they can frequently be picked directly into a shipping container.

Cons• A general decision to be made is whether a typical order should be picked in serial (by a

single worker at a time) or in parallel (by multiple workers at a time). The general trade-off is that picking serially can take longer to complete an order but avoids the complications of coordinating multiple pickers and consolidating their work.

Warehouse Operations (OUTBOUND)Order Waving and Picking: (55% of work load)PickingReplenishment:• To sustain order-picking product must also be replenished. Restockers move SKU’s in larger

units of measure (cartons, pallets) and so a few restockers can keep many pickers supplied. A rule of thumb is one restocker to every five pickers; but this will depend on the particular patterns of flow.

• A restock is more expensive than a pick because the restocker must generally retrieve product from bulk storage and then prepare each pallet or case for picking. For example, he may remove shrink-wrap from a pallet so individual cases can be retrieved; or he may cut individual cases open so individual pieces can be retrieved.

Warehouse Operations (OUTBOUND)Packing: (5% of work load)

• Packing can be labor-intensive because each piece of a customer order must be handled; but there is little walking. And because each piece will be handled, this is a convenient time to check that the customer order is complete and accurate.

• One complication of packing is that customers generally prefer to receive all the parts of their order in as few containers as possible because this reduces shipping and handling charges. This means that care must be taken to try to get all the parts of an order to arrive at packing together. Otherwise partial shipments must be staged, waiting completion before packing, or else partial orders must be packaged and sent.

• Packed product may be scanned to register the availability of a customer order for shipping. This also begins the tracking of the individual containers that are about to leave the warehouse and enter the system of a shipper.

Warehouse Operations (OUTBOUND)Shipping: (15% of work load)

• Shipping generally handles larger units than picking, because packing has consolidated the items into fewer containers (cases, pallets). Consequently, there is still less labor here. There may be some walking if product is staged before being loaded into freight carriers.

• Product is likely to be staged if it must be loaded in reverse order of delivery or if shipping long distances, when one must work hard to completely fill each trailer. Staging freight creates more work because staged freight must be double-handled.

• The trailer is likely to be scanned here to register its departure from the warehouse.• In addition, an inventory update / ASN (Advanced Shipment Information) may be sent to the

customer

http://www.youtube.com/watch?v=0E-Wy1fOdOw



Warehouse Operations (VAP)VAP - Value added processing• Such work may be pushed on warehouses by manufacturers upstream who want to postpone product

differentiation. By postponing product differentiation, upstream distributors, in effect, see more aggregate demand for their (undifferentiated) product. For example, a manufacturer can concentrate on laptop computers rather than on multiple smaller markets, such as laptop computers configured for an English-speaking market and running Windows 2000, those for a German-speaking market and running Linux, and so on.

• At the same time value-added processing is pushed back onto the warehouse from retail stores, where it is just too expensive to do. Both land and labor are typically more expensive at the retail outlet and it is preferable to have staff there concentrate on dealing with the customer.

Typical value-added processing includes the following:• Ticketing or Labeling (For example, New York state requires all items in a pharmacy to be price-labeled and

many distributors do this while picking the items in the warehouse.)• Monogramming or Alterations (For example, these services are offered by Lands End, a catalog and e-mail

merchant of clothing)• Repackaging• Kitting (repackaging items to form a new item)• Final assembly, OEM labeling (For example, many manufacturers of computer equipment complete

assembly and packaging in the warehouse, as the product is being packaged and shipped.)

WM Server Monitor (Hands On)MQ Servers

Controls:1. Start the server2. Shutdown the server7. Display unprocessed8. Display errors9. Work with job/logs

WM Server Monitor (Hands On)Server Setup

WM Server Monitor (Hands On)Work with logs (To look out for errors of already finished jobs):

WM Server Monitor (Hands On)Host Apply Servers

Controls:1. Start the server2. Shutdown the server7. Display unprocessed8. Display errors9. Work with job

WM Server Monitor (Hands On)Display Errors:

WM Server Monitor (Hands On)Reapply ASN:

WM Server Monitor (Hands On)Server Setup:

WM Interface Details (INBOUND)

Item/Style Master• MQ Server: MQ2• Flat File: I5INPT00

• Host Apply Server: I03• Program Called: IF03U0CL -> IF03U0RP (Main)

IF03U1RP (Host Specific Validations) IF03C0RP (Custom Validations)

• PKMS Master File: STSTYL00/ CQSTYL00


ASN (Advance Shipment Notification)• MQ Server: MQ7• Flat File: I8INPT00 (ASN/Shipment Header) • I9INPT00 (ASN/Shipment Detail)• IBINPT00 (Case Details) • Host Apply Server: I09• Program Called: IF09U0CL -> IF09U0RP

IF09U1RP (Host Specific Validations)IF09C0RP (Custom Validations)

• PKMS Master File: AHASNF00 (ASN/Shipment Header) ADASNF00 (ASN/Shipment Detail) IDCASE00 (Case Details)


Pick-Tickets• MQ Server: MQ6• Flat File: I5INPT00

• Host Apply Server: I01• Program Called: IF01U0CL -> IF01U0RP• PKMS Master File: PHPICK00 (Pick-ticket Header)

PDPICK00 (Pick-ticket Detail)


Item Cross Reference• MQ Server: MQ8• Flat File: IRINPT00

• Host Apply Server: I26• Program Called: IP38U0CL -> IP38U0RP• PKMS Master File: XRXREF00 (Cross Reference File for Barcode – Vendor to SKU Barcode

Mapping)


EPC Prefix• MQ Server: MQ9• Flat File: EIINPT00

• Host Apply Server: I44• Program Called: IF44U0CL -> IF44U0RP• PKMS Master File: EXPRFX00 (EPC Prefix: GTIN Prefix)

WM Interface Details (OUTBOUND)

Invoice (Ship Confirmation)• MQ Server: MQ4• Flat File: NA

• Host Apply Server: Custom• Program Called: IF79X0CL -> IF79X0RP• PKMS Master File: O1OPUT00 (Batch Invoice Header)

O2OPUT00 (Batch Invoice Detail) O3OPUT00 (Batch Invoice Carton Header)

O4OPUT00 (Batch Invoice Carton Detail) O5OPUT00 (Batch Invoice Carton Serial)

WM Interface Details (OUTBOUND)

PIX (Perpetual Inventory transactions)• MQ Server: MQ8• Flat File: NA

• Host Apply Server: Custom• Program Called: IF79X0CL -> IF79X0RP • PKMS Master File: PXSTYL00

MQ-SERIESMQ-Series is a platform independent communication system that provides• Assured• Asynchronous• Once-Onlydelivery of data across hardware and software platforms.

• Ideal infrastructure for application to application communication those are separated across servers or networks. The applications can be written in different languages and networks may use different protocols.

• The data is not lost in case of any failures in underlying operating systems or network infrastructure. Hence, it is a backbone of critical communication systems. There are also options where you might prefer faster delivery with less emphasis of assured delivery.

• The communication is time independent and allows decoupling of the receiving and sending applications. In fact, the target application need not even run when the data is sent. Likewise, the entire network path between the sender and receiver may not need to be available when the data is in transit.

MQ-SERIES

There are 4 fundamental concepts in MQ-Series that you need to understand:

1. Messages:• A message is a string of bytes that has meaning to the applications that use it. • Messages are used for transferring data from one application to another (or

to different parts of the same application).

MQ-Series messages have two parts:• Application Data: The content and structure of the application data is defined

by the application programs that use the data• Message Descriptor: It identifies the message and contains other control

information such as the type of message and the priority assigned to the message by the sending application.

MQ-SERIES

MQ-Series messages have two parts:• Application Data: The content and structure of the application data is defined

by the application programs that use the data• Message Descriptor: It identifies the message and contains other control

information such as the type of message and the priority assigned to the message by the sending application.

MQ-SERIES

2. Queues:• A queue is a data structure in which messages are stored. The messages may

be put on, or got from, the queue by applications or by a queue manager as part of its normal operation.

• Queues exist independently of the applications that use them.They may exist on

• Main storage (if temporary) - RAM• Disk or Auxillary Storage• Both places (Recovery purposes)

MQ-SERIES

There are mainly 2 types of queues:• Local Queue – These exist on local system or server• Remote Queue – These exist on different server or different Queue Manager

Applications send to and receive messages from the queue. One application “puts” the message on the queue while other application “gets” the message from the queue.

MQ-SERIES

Each queue has attributes that determines what happens when applications access the queue.

Some attributes are:- Whether applications can retrieve messages from the queue (get enabled)- Whether applications can put messages onto the queue (put enabled)- Whether access to the queue is exclusive to one application or shared between applications- The maximum number of messages that can be stored on the queue at the same time (maximum queue

depth)- The maximum size of messages that can be put on the queue (maximum message size)

MQ-SERIES

Other Queue types:Event queues • An event queue is a queue that is used to receive event messages, which

indicate that a particular type of instrumentation event has occurred during the execution of an application program. Instrumentation events help you to monitor your system. There are three system administration event queues, one for each of the three categories of instrumentation event that can be generated: • SYSTEM.ADMIN.QMGR.EVENT, for queue manager events • SYSTEM.ADMIN.PERFM.EVENT, for performance events • SYSTEM.ADMIN.CHANNEL.EVENT, for channel events

• When an event is generated, it is put on one of these queues.

MQ-SERIES

Other Queue types:Initiation queues • An initiation queue receives trigger messages, which indicate that a trigger

event has occurred. A trigger event is caused by a message that satisfies the specified conditions being put onto a queue. Messages are read from the initiation queue by a trigger monitor application which then starts the appropriate application to process the message. If triggers are active, at least one initiation queue must be defined for each queue manager.

Transmission queues • A transmission queue temporarily stores messages that are destined for a

remote queue manager. You must define a transmission queue for each remote queue manager to which the local queue manager is to send messages. It is possible to associate several transmission queues with different characteristics with a remote queue manager. This allows different classes of transmission service.

MQ-SERIES

Other Queue types:Reply-to queues • If a message is a request message and so requires a reply, the sender of the

message must specify the name of the queue to which the reply should be sent; this is called the reply-to queue. It is also the queue to which report messages are usually sent, if any are generated.

Dead Letter queues • A dead-letter queue (also known as an undelivered-message queue) receives

messages that cannot be routed to their correct destinations. This occurs when, for example: • The destination queue is full. • The message cannot be put on the destination queue. • The sender is not authorized to use the destination queue. • The destination queue does not exist.

MQ-SERIES

Other Queue types:Command queues • A command queue is a queue owned by a queue manager to which suitably

authorized applications can send messages containing MQ-Series administration commands. The commands in these messages are processed by the command server part of the queue manager.

Dynamic queues • Such a queue is defined “on the fly” when the application needs it. It is like our

QTEMP object. These are local queues and mostly used in conversational applications to store intermediate results.

Alias Queues• These are not real queues, but just definitions. They are used to assign different

names to same physical queue. This allows multiple programs to work with same queue, accessing it under different names and with different attributes.

MQ-SERIES

2. Queue Manager:• A queue manager provides queuing services to applications, and manages the queues

that belong to it.

It ensures that:• Object attributes are changed according to the details received.• Special events (such as instrumentation events or triggering) are generated when the

appropriate conditions are met.• Messages are put on the correct queue, as requested by the application. The

application is informed if this cannot be done, and an appropriate reason code is given.

• Each queue belongs to a single queue manager and is said to be a local queue to that queue manager. A remote queue manager is any queue manager other than the local queue manager. A remote queue manager may exist on a remote machine across the network or it may exist on the same machine as the local queue manager.

MQ-SERIES

Queue Manager

MQ-SERIES

4. Channels:• A channel provides a communication path to a queue manager.

There are two types of channel: • Message channels - A message channel provides a communication path

between two queue managers on the same, or different, platforms. The message channel is used for transmitting messages from one queue manager to another, and shields the application programs from the complexities of the underlying networking protocols. A message channel can transmit messages in one direction only. Two message channels are required if two-way communication is required between two queue managers.• MQI channels - A client channel (also known as an MQI channel) connects an

MQ-Series client to a queue manager on a server machine and is bidirectional.

MQ-SERIES

Channels

MQ-SERIES

Clients and servers • MQ-Series supports client-server configurations for MQ-Series applications. • An MQ-Series client is a part of the MQ-Series product that is installed on a

machine to accept MQ-Series calls from applications and pass them to an MQ-Series server machine. There they are processed by a queue manager. Typically, the client and server reside on different machines, but they can also exist on the same machine

• An MQ-Series server is a queue manager that provides queuing services to one or more clients. All the MQ-Series objects (for example, queues) exist only on the queue manager machine (that is, on the MQ-Series server machine). A server can support local MQ-Series applications as well. • The difference between an MQ-Series server and an ordinary queue manager is

that the MQ-Series server can support MQ-Series clients, and each MQ-Series client application has a dedicated communication link with the MQ-Series server.

MQ-SERIES

Clusters • A Cluster is a named collection of queue managers. Transactional support • An application program may need to group a set of updates into a unit of work.

Such updates are usually logically related and must all be successful for data integrity to be preserved. Data integrity would be lost if one update in the group succeeded while another failed. MQ-Series supports transactional messaging.

Message driven processing• When they arrive on a queue, messages can automatically start an application,

using a mechanism known as triggering. If necessary, the application can be stopped when the message or messages have been processed.

MQ-SERIES

MQ Across servers (OMS <-> PKMS)

MQ-SERIES

MQ Application programming interface (API)

MQ-SERIES

Introduction to MQ-Series for AS/400Commands: • QMQM sub-system should be on ----- STRSBS SBSD(QMQM/QMQM)• WRKMQM (Work with Queue Managers)

MQ-SERIES

Introduction to MQ-Series for AS/400Commands: • WRKMQMQ (Work with Queues)• Create a test message in the queue to test if its working fineCALL PGM(QMQM/AMQSPUT0)PARM(TEST.QUEUE TEST.QMANAGER) • Browse the message in queue:CALL PGM(QMQM/AMQSGET4)PARM(TEST.QUEUE TEST.QMANAGER)WRKMQMMSG MQMNAME(TEST.QMANAGER)QNAME(TEST.QUEUE)

• Clear the queue:• CLRMQMQ MQMNAME(TEST.QMANAGER)QNAME(TEST.QUEUE)

MQ-SERIES

Program Flow:

Package

why warehouse?

Documents

pl warehouse

product moves

supplies product

units of handlingfactory

larger units

units of handlingupstream

smaller units

companys supply chain