A Warehouse
example:
Have you ever noticed your computer slowing
down?
That is often because
pieces of your files get
scattered all over the disk and
the computer
makes trips all over the disk to fetch
all the parts.
Some computers use a defragmentation program to alleviate
this problem.
Warehouses
suffer from the same problems.
Orders come in which vary by season, demand and quantity.
If a warehouse is allowed to fragment,
expensive and
unnecessary trips to the back of the warehouse or to
the top shelf of storage happen more often.
This system
solves the problem by optimizing the location of items by
volume and activity.
Although I can't show you some of the proprietary and
confidential info of my clients,
you can see some
of the principles below. If you want to see more,
contact me at
garethharris@mac.com
Here is a display of a product - SKU [stock keeping unit]
activity in a warehouse over time.
Notice the amounts are displayed in both number of pieces
and cubic feet.
Shipping is in red,
receiving is in green
and
the amount onhand is a dotted
blue line.
The time is by week number of year.
Optimization of location in the warehouse to fit the
demands of the orders to be filled can
save
significant costs, sometimes as much as 20-30%.
The optimization accounts for type
of product, season, and the sensing of increased velocity
of shipments.
With some logistics colleagues of mine,
I recently installed a planning database server which nips
this problem in the bud for a large web order fulfillment
company.
The
solution was to
intercept the shipping notices of incoming
trucks and
plan the placement of their contents into
the warehouse
before the truck got to the incoming dock
by interacting with the WMS [warehouse management system]
of the client.
As boxes come off the truck,
they are routed by a conveyor to the planned location.
Then the contents are in an optimum location to pick orders
with minimum cost in time [and hence money $$.]
The diagram below shows this operation.
First the planning server gets Advanced Shipping Notices
[ASNs] from the WMS - Logpro in this case - when it
receives them from the client.
After analyzing the incoming information,
the
server makes a plan and provides this info to
the conveyor controller which can look up
individual products [SKUs] as they come off the truck.
In addition to automatic connections, displays and
printable plans,
the warehouse staff have displays like this one
which is updated every minute.
Here is an example snapshot: