LR, Report, Syn

Improving Inventory Control by Re-engineering of Warehouse.
LITERATURE REVIEW
Introduction of Ware House:
Abstract:
Developing an input-output model of a warehouse system to assess operational efficiency.

Model simultaneously accounts for all of the critical resources (labor, space, and storage and
handling equipment) and the different workload requirements (Picking, storage and order
accumulation) of a warehouse. Warehouse and distribution facilities from a variety of industries,
including auto parts, dental and office supplies, electronics, fine papers, hardware, health care,
industrial packaging, mail order apparel, office machines, photographic supplies, and wholesale
drugs, and used the model to assess and compare their efficiencies. Warehouses using lower
levels of automation tend to be more efficient. This association is more pronounced in small
firms. Unionization is not negatively associated with efficiency and in fact may actually
contribute to higher efficiency.
Order picking has long been identified as the most labour-intensive and costly activity for almost
every warehouse; the cost of order picking is estimated to be as much as 55% of the total
warehouse operating expense. Any underperformance in order picking can lead to unsatisfactory
service and high operational cost for its warehouse, and consequently for the whole supply chain.
In order to operate efficiently, the order picking process needs to be robustly designed and
optimally controlled. This paper gives a literature overview on typical decision problems in
design and control of manual order-picking processes. We focus on optimal (internal) layout
design, storage assignment methods, routing methods, order batching and zoning. The research
in this area has grown rapidly recently. Still, combinations of the above areas have hardly been
explored. Order-picking system developments in practice lead to promising new research
directions.
Introduction:
Warehousing and transportation forms the backbone supply chain of all industries. Adequate
storage capacity and strategic location of the warehouse enables efficient functioning of supply
and distribution network and also provides strategic competitive advantage to the business.
Proper material handling, storage conditions and timely movement of goods are necessary as
improper handling and prolonged storage can deteriorate the quality of the stored product.
Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 1

Warehouse can play a key role in the integrated logistics strategy and its building and
maintaining good relationships between supply chain partners. Warehousing affects customer
service stock-out rates and firm’s sales and marketing success. A warehouse smoothens out
market supply and demand fluctuations. When supply exceeds demand, demand warehouse
stores products in anticipation of customers requirements when Demand exceeds supply the
warehouse can speed product movement to the customer by performing additional services like
marking prices, packaging products or final assembling etc.
Storage Warehouse:
A storage warehouse is a commercial building which is generally located in the industrial areas
and is used for the storage of goods. Storage warehouses are generally used by manufacturers,
wholesalers, exporters, transport business and customs to store goods.
.
A storage warehouse is an important part in the distribution chain of products. They are the hubs
where goods are stored to be distributed further. To help the movement of goods and the process
storage warehouses are equipped with cranes and forklifts.
With time the need of a typical warehouse has be declining due to the Just in Time policy
followed by the business to improve the returns of a business by reducing in process inventory.
The JiT system promotes the delivery of products or parts directly from the manufacturer to the
merchant eliminating the need of a storage warehouse. But still storage warehouses are
commonly used due to the convenience they offer in the distribution chain. The latest
development is the retail store type warehouses where decorative shelving is replaced by tall
heavy duty industrial racks.

Understanding Inventory:
Despite its importance to the supply chain, inventory is not universally well understood. It is
variously characterized, both positively and negatively, as an economic asset to a non-income-
producing use of capital funds.
Only when considered in light of all quality, client service and economic factors—from the
viewpoints of purchasing, manufacturing, sales and finance—does the whole picture of inventory
become clear. No matter the viewpoint, effective inventory management is essential to supply
chain competitiveness.
Inventory control is concerned with minimizing the total cost of inventory. In the U.K. the term
often used is stock control. The three main factors in inventory control decision making process
are:
 The cost of holding the stock

 The cost of placing an order
 The cost of shortage
The third element is the most difficult to measure and is often handled by establishing a "service
level" policy, e. g, certain percentage of demand will be met from stock without delay.
Types of Inventory:
Company using the different types of inventory,
 Cyclic Inventory
 Safety Inventory
 Seasonal Inventory
Cyclic Inventory:
Cyclic inventory is the average amount of inventory used to satisfy demand between receipts of
supplier shipments. The size of the cyclic inventory is a result of production, transportation, or
purchased of material in large lots.
Safety Inventory:
Safety inventory is the inventory held in case demand exceeds expectation; it is held to counter
uncertainty. If the world were perfectly predictable, only cyclic inventory would be needed,

because demand is uncertain and may exceed expectations, however, companies hold safety
inventory to satisfy an unexpectedly high demand.
Seasonal Inventory:
Seasonal Inventory is built up to counter predictable variability in demand, companies using

seasonal inventory buildup inventory in periods of low demand and store it for periods of low
demand and store it for periods of high demand when they will not have the capacity to produce
all that is demanded.
Lowering Inventory Costs:
Recent industry reports show that inventory costs as a percent of total logistics costs are
increasing. Despite this rise, many organizations have not taken full advantage of ways for
lowering inventory costs.
There are a number of proven strategies that will provide payoff in the inventory area, both in
client service and in financial terms.
Some of these strategies for lowering inventory costs involve having fewer inventories while
others involve owning less of the inventory you have.
Regardless of which techniques you employ, proactive inventory management practices will
make a measurable difference in your operations.
JUST-IN-TIME INVENTORY CONTROL:
"Just-in-time production is a simple idea that may be difficult to implement " wrote Gershon and
Weiss.
"The basic concept is that finished goods should be produced just in time for delivery, and raw
materials should be delivered just in time for production. When this occurs, materials or goods
never sit idle, which means that a minimum amount of money is tied up in raw materials, semi
finished goods, and finished goods…. The just-in-time approach calls for slashing production
and purchase lot sizes and also buffer stocks—but incrementally, a little at a time, month after
month, year after year. The result is sustained productivity and quality improvement with greater
flexibility and delivery responsiveness." This production concept, which originated in Japan and
became immensely popular in American industries in the early and mid-1990s, continues to be
hailed by proponents as a viable alternative for businesses looking for a competitive edge.

Setting an Inventory Strategy
No single inventory strategy is equally effective for all businesses. Indeed, there are many
different factors that can impact the usefulness of a given inventory strategy, including
positioning of inventory, rationalization, segmentation, and continuous improvement efforts.
Moreover, small businesses in particular often face financial and logistical limitations when
erecting their inventory systems. And of course, different industries have different inventory
needs. Consumer goods producers, for instance, need to have well-balanced inventories at the
point of sale, while producers of industrial and commercial products typically do not have clients
that require the same degree of delivery lead time.
Inventory Accounting
The way in which a company accounts for its inventory can have a dramatic affect on its
financial statements. Inventory is a current asset on the balance sheet. Therefore, the valuation of
inventory directly affects the inventory, total current asset, and total asset balances. Companies
intend to sell their inventory, and when they do, it increases the cost of goods sold, which is
often a significant expense on the income statement. Therefore, how a company values its
inventory will determine the cost of goods sold amount, which in turn affects gross profit
(margin), net income before taxes, taxes owed, and ultimately net income. It is clear, then, that a
company's inventory valuation approach can cause a ripple effect throughout its financial picture.
One may think that inventory valuation is relatively simple. For a retailer, inventory should be
valued for what it cost to acquire that inventory. When an inventory item is sold, the inventory
account should be reduced (credited) and cost of goods sold should be increased (debited) for the
amount paid for each inventory item. This works if a company is operating under the Specific
Identification Method. That is, a company knows the cost of every individual item that is sold.
This method works well when the amount of inventory a company has is limited and each
inventory item is unique.
The Specific Identification Method, however, is cumbersome in situations where a company

owns a great deal of inventory and each specific inventory item is
relatively indistinguishable from each other. As a result, other inventory valuation methods have
been developed. The best known of these are the FIFO (first-in, first out) and LIFO (last-in, first-
out) methods.
FIFO: First-in, first-out is a method of inventory accounting in which the oldest stock items in a
company's inventory are assumed to have been the first items sold. Therefore, the inventory that
remains is from the most recent purchases. In a period of rising prices, this accounting method
yields a higher ending inventory, a lower cost of goods sold, a higher gross profit, and a
highertaxable income.
The FIFO Method may come the closest to matching the actual physical flow of inventory. Since
FIFO assumes that the oldest inventory is always sold first, the valuation of inventory still on
hand is at the most recent price. Assuming inflation, this will mean that cost of goods sold will
be at its lowest possible amount. Therefore, a major advantage of FIFO is that it has the effect of
maximizing net income within an inflationary environment. The downside of that effect is that
income taxes will be at their greatest.
LIFO: Last-in, first-out, on the other hand, is an accounting approach that assumes that the most
recently acquired items are the first ones sold. Therefore, the inventory that remains is always the
oldest inventory. During economic periods in which prices are rising, this inventory accounting
method yields a lower ending inventory, a higher cost of goods sold, a lower gross profit, and a
lower taxable income. The LIFO Method is preferred by many companies because it has the
effect of reducing a company's taxes, thus increasing cash flow. However, these attributes of
LIFO are only present in an inflationary environment.
The other major advantage of LIFO is that it can have an income smoothing effect. Again,
assuming inflation and a company that is doing well, one would expect inventory levels to
expand. Therefore, a company is purchasing inventory, but under LIFO, the majority of the cost
of these purchases will be on the income statement as part of cost of goods sold. Thus, the most
recent and most expensive purchases will increase cost of goods sold, thus lowering net income
before taxes, and hence net income. Net income is still high, but it does not reach the levels that
it would if the company used the FIFO method.

Warehouse Layout & Design:
Warehousing was supposed to disappear with Lean Manufacturing. This has rarely occurred but
the nature of warehousing often does change from storage-dominance to transaction dominance.
In addition, the trend to overseas sourcing has increased the need for warehousing and its
importance in the supply chain.
Warehousing buffers inbound shipments from suppliers and outbound orders to customers.
Customers usually order in patterns that are not compatible with the capabilities of the
warehouse suppliers. The amount of storage depends on the disparity between incoming and
outbound shipment patterns.
Order Picking In the Warehouse:
Order picking can be defined as the activity by which a small number of goods are extracted
from a warehousing system, to satisfy a number of independent customer orders. Picking
processes have become an important part of the supply chain process. It is seen as the most
labor-intensive and costly activity for almost every warehouse, where the cost of order picking is
estimated to be as much as 55% of the total warehouse operating expense.
As the order picking process involves significant cost and can affect customer satisfaction
levels, there have been increasing numbers of process improvements proposed to help companies
with this supply chain issue.
Design Strategies:

One key to effective design is the relative dominance of picking or storage activity.
These two warehouse functions have opposing requirements.
Techniques that maximize space utilization tend to complicate picking and render it inefficient
while large storage areas increase distance and also reduce picking efficiency. Ideal picking
requires small stocks in dedicated, close locations. This works against storage efficiency.
The figure below shows how different transaction volumes, storage requirements and
technologies lead to different design concepts.
LOW PICKING & HIGH

STORAGE
High Pick & High Storage

This indicates a large and active warehouse such as a Distribution Center (DC). In these
situations, high technology automated picking combined with mechanized handling and high
density storage justifies itself.
Low Pick & High Storage

The requirement is for high density storage with high bays, multi-levels and dense packing. Low
turnover means that picking can be manual or semi-manual.
High Pick & Low Storage

With high picking activity but low storage, the picking area should be compact and dense
and storage is simple. Some automation of picking may be justified.
Low Pick & Low Storage

A simple, small warehouse requires neither automation nor sophisticated storage devices.
Stacked pallets, floor storage or simple racks and shelves suffice. Handling is manual.
Order Picking In The Warehouse
Order picking can be defined as the activity by which a small number of goods are extracted
from a warehousing system, to satisfy a number of independent customer orders. Picking
processes have become an important part of the supply chain process. It is seen as the most
labor-intensive and costly activity for almost every warehouse, where the cost of order picking is
estimated to be as much as 55% of the total warehouse operating expense. As the order picking
process involves significant cost and can affect customer satisfaction levels, there have been
increasing numbers of process improvements proposed to help companies with this supply chain
issue.
The challenge is to find the right tools to increase accuracy and improve picking productivity,
and thus reduce labor costs. Take it one step further, and you have to decide which technology is
most effective: bar code scanners or voice-recognition devices?

Solutions For Order Picking
A number of supply chain academics such as G.P. Sharp and Edward Frazelle have proposed a
number of ways of classifying the order picking system. Four solutions have been identified for
order picking.
 Picker to Part
 Part to Picker
 Sorting System
 Pick to Box
Picker To Part
This particular method is very common and found in most warehouse environments. The process
involves a storage area, a picking area and a material handing system that is used to refill the
picking locations from the storage area, which can be forklift based or more specialized such as
gravity flow racks. The storage area will contain the items required to fulfill the customer orders.
The picking operator can then pick the items for each customer order from the items stored in the
picking area. As all the items are in a smaller area than the regular warehouse, the picking
operator can fulfill the order more efficiently than if they had to pick the items from the general
storage area in the warehouse. The gravity flow racks are especially useful for items that are
commonly ordered so the picking operator can be in one location and pick items from the trays
in front of them. There are a number of technological advances in ―picker to part‖ processes such
as ―pick to light‖ or ―voice picking‖. These systems allow picking operators are informed which
item to pick based on a light appearing on the item location or a voice informing the operator on
a headset which item to pick.
Part To Picker
The part to picker method employs the same physical locations as the previous method; storage
area, picking area and a material handling system that moves the items from the storage area to
the picking area. The difference with this method is that the picking area is made up of a series of
picking bays. The items are moved from the storage area and delivered to the picking bays. Each
bay receives the items for one or more orders. The picking operator collects the items delivered
to their bay and the customer order is fulfilled in this manner. This method can be subject to
wasted labor as picking operators can find themselves waiting for items to be delivered to their
picking location.

Sorting System
The sorting process including the requirement for a picking area, a storage area, replenishment of
the picking area and a sorter. This method uses automatic material handling system consisting of
multiple conveyors and a number of sorting devices. The items are placed on a conveyor in the
storage area and the items are sorted for each particular order. The operator in the picking area
collects the items that have been sorted for a customer order and processes that order. The
efficiency is gained because the operator does not have to consume time collecting individual
items.
Pick To Box
Pick to box is similar to the sorting solution as it uses the same elements; a picking area, a
storage area, replenishment of the picking area and a sorter. The picking area is organized so that
there are a number of picking zones connected by a conveyor system. The operator fills the box
with the items on a customer order and the box moves to the picking zones until the customer
order is complete and it is then ready for shipment to the customer. The efficiencies are gained
because the operator does not have to consume time collecting individual items, but the cost of
the initial set up of this solution could negate any cost benefits that the solution offers.
Choosing an order picking system depends on any number of requirements such as cost,
complexity, number of customer orders, size and number of items, etc. Every company has a
unique requirement and one order picking solution may suit one business and not another.
Determining the requirements will ensure that the most efficient order picking solution is
selected.
Current Warehousing Problems
 Space Utilization
 Costs too high
 Poor productivity
 Poor layout
 Processes not working

Measuring Tools for the re-engineering of the ware house
 5’S
About 5’S: What is 5S ?

5-S can be defined as
1. Seiri (Proper Arrangement and Clearing Up)

a) Look around work area and ask yourself ―is it really necessary for all items to be there?‖
b) Separate O.K., re workable and rejected items
c) Rework the re workable items and dispose of the rejected items.
2. Seiton (Orderliness)
Items must be placed in prefixed locations so that they are easily accessible and can be easily
used. Make sure that items can be clearly identified by labeling them properly.
3. Seiso (Clean Up)

Seiso means cleaning the work place.
4. Seiketsu (Standardization)
Even a clean work place with proper selection and proper arrangement will soon become dirty if
Seiri, Seiton and Seiso are not continuously repeated. Let us prevent problems by keeping things
standardized and maintaining a good environment.
5. Shisuke (Discipline)
Everyone should be disciplined to follow strictly the rules and maintain standards while working.
For example let us adhere to the timings and let us follow the prescribed operation standards.
Benefits of 5’S:
 Saving of searching time.

 Making availability of extra space in plant.
 Safety of workers in warehouse.

Before the re-engineering of warehouse I found that:
 Space utilization is not proper.

 Picking times is more.
 They doing outward scanning in two places.
 No any identification mark for the brands.
Advantages of Re-engineering Warehouse:
 Proper Space utilization.

 Reduces the picking time.
 Proper identifications of rack number, brands and others.
 Proper marking, where to store the put way and outward.
References:
 Shopper’s Stop Warehouse in Bangalore

 Supply Chain Management Book- Mr. Sunil Chopra
 http://findarticles.com
 http://www.elogistics.com
 http://logistics.about.com

Objective:
Improving Inventory Control by Re-engineering of warehouse in supply chain management at
Prateek life Style Limited.
Introduction:
Companies look far and wide for ways to make their extended supply chains more efficient. But
sometimes the best solutions lie close to home.
Inventory exists in the supply chain because of the mismatch between supplier and demand. An
important role that inventory plays in the supply chain is to increase the amount of demand that
can be satisfied by having the product ready and available when the customer wants.
An apparel supply chain with high inventory levels at the retail stage has a high level of
responsiveness because a consumer can walk into a store and walk out with garments.
The Fundamental rethinking and Radical redesign of the business Process to achieve Dramatic
improvements in critical, contemporary measures of performance ..."
Sub- Objective:
 To study the existing layout of ware house.
 To change the existing layout.
 Eliminate the extra work during process.
 Better utilization of the space.
 Replenishment in the picking area.
 Increase the better identification for the inventory (Finished Goods) in the warehouse.

Methodology:
1. Analyze the existing Layout process.
2. Conducting secondary research to find out the warehousing system
3. .Analyze the existing Inventory manages system.
4. Use the quality tools for implementation in ware house
5. Define the Standard Operating Procedure of the Warehouse.
References:
Ware houses like,
Shoppers Stop
Supply Chain Management (Strategy, Planning & Operation)
BY: Mr. Sunil Chopra
Production and Operation Management (manufacturing and services)
BY: Mr. Richards B. Chase

Company Profile
Basic Information
Company Name: PRATEEK LIFESTYLE LTD

Manufacturer, Trading Company, Buying Office,
Business Type:
Distributor/Wholesaler
Fashion Accessories, Caps, Sunglasses, Hand Bags, Wrist Bands,
Product/Service
Fashion Belts, Leather Belts, Sport Shoes, Leather Shoes, Home
(We Buy):
Furnishing, Electronic Goods, MP4 Players, DVD Players
Brands: Coupon Stores, F Square
Number of Employees: 101 - 500 People
Factory Information
Factory Size (Sq.meters): Above 100,000 square meters

Factory Location: Bangalore
QA/QC: In House
Number of Production
Above 10
Lines:
Number of R&D Staff: 5 - 10 People
Number of QC Staff: 21 - 30 People
Contract Manufacturing: Buyer Label Offered
Company Name: PRATEEK LIFESTYLE LTD Street Address: 113, Krishna reddy industrial
area City: Kudlu gate, 7th Mile Province/State: Karnataka Country/Region: India Zip: 500068
Telephone: 91-080-41112634 Mobile Phone: 91-9845070731 Fax: 91-080-2572 7219 Website:
http://www.prateeklifestyle.com

Inventory:
Inventory exists in the supply chain because of the mismatch between supplier and demand. An
important role that inventory plays in the supply chain is to increase the amount of demand that
can be satisfied by having the product ready and available when the customer wants.
Inventory is held through the supply chain in the form of raw material, work in process and
finished goods. Inventory is a major source of cost in a supply chain and has s huge impact on
responsiveness.
An apparel supply chain with high inventory levels at the retail stage has a high level of
responsiveness because a consumer can walk into a store and walk out with garments.
Present form of Inventory:

In Prateek life style inventory in the form of FINISHED GOODS.
FINISHED GOODS: Finished goods classify according to brands:
 Mark Taylor in the Mark Taylor – Formal Shirts, Casual Shirts, T-shirts
 Locomotive in the Locomotive – Casual Shirts, T-shirts, Denims
 Highlander in the Highlander- Casual Shirts, T-shirts, Denims
 Black Coffee in the Black coffee- Casual Shirts
Re-engineering: Systematic design, identification and arrangement of warehouse are desirable

for the saving in the costs.
Re-engineering, or more specifically, business process reengineering (BPR), is a term that was
launched into the forefront of the business world by Michael Hammer and James Champy in
their 1993 book, Reengineering the Corporation: A Manifesto for Business Revolution. In this
book, Hammer and Champy define reengineering as:
"The Fundamental rethinking and Radical redesign of the business Process to achieve Dramatic
improvements in critical, contemporary measures of performance ..."

Re-engineering Cycle
Re-engineering:
 To ensure that the storage locations are well defined and have a unique identification
number.
 To ensure that the locations are well defined in the system and coincide with the
planogram.
 To ensure that the warehouse layout facilitates quick storage and picking facility.
 The warehouse layout clearly earmarks the various functional areas.
Process Triggers:
 At time of setting up a new warehouse or re-engineering of existing warehouse
In the re-engineering
 Calculate the capacity according to brands.

 Define the location of the brand.
 Define the rack number.
 Define the rack available for the particular of the brand.
 Define the Aisle.
 Define the Slot number.

Company Process:
Overall system diagram
 The supplier (Prateek Apparels Limited) sends goods to the warehouse

 A Goods Received Note (GRN) is also sent to the warehouse
 The goods are stored in the warehouse
 The customer sends an order
 The goods are retrieved from the warehouse
 The goods are sent to the customer

Goods Received
 The supplier (Prateek Apparels Limited) sends goods to the warehouse, along with a GRN
 The information on the GRN is entered into The Warehouse Management System
 Manually creates put away instructions for the goods

Order Processing/Goods Out
 As the goods come to warehouse, a receiving receipt is given by the security guards.
 After tallying the goods according to Challan, goods are stored to receive goods area.
 Goods are then sending to GRN department where inward entry is being done in
VOYEGER Software.
 Goods are then send to respective places for storing to the appropriate places and
arranged in racks in FIFO Manner.

Based on the sales report data, Pick slip is being generated with the help of VOYEGER
Software.
 This Slip is handover to picking worker who manually search the goods and put the
goods for outward.
 After outward scanning, goods are packed and send to dispatch department where after
documentation, goods are dispatched to the respective stores through van and small
trucks.

Flow Diagram of the existing Process in warehouse:

Existing Layout:
Existing layout is not in the proper and systematic manner.
Problem in Existing Layout:
 Layout is not proper way, first segment is not proper align.
 Not define the capacity of the brands
 Not define the location of the brands.
 Not define the aisle, rack number, slot number.
 They are doing two places out ward scanning and no space for the office.
 Picking time is much more, worker achieved only40 to 50% efficiency, of

the target.
Modified Layout:
SEGMENT-4
SEGMENT-3
SEGMENT-2
SEGMENT-1
Features of Modified Layout:
 Define the capacity of the Warehouse
 Better Identification of the segment like Mark Taylor, High Lander,

Locomotive, and Black Coffee.
 Identification of Aisle.
 Identification of the Racks and Shelf’s / Slots.
 Utilization of the space.
 Shifted the out ward scanning in a single place.
 Picking efficiency will increase.

Total Floor Area Calculation:
TOTAL AREA CALCULATION OF F SQUARE ZONE
TOTAL FLOOR AREA

TOTAL LENGTH 120 FEET
TOTAL WIDTH 69 FEET
TOTAL HEIGHT 9 FEET
TOTAL AREA LxW 74520 CUBIC FEET
ONE RACK SIZE LENGTH 4 FEET

WIDTH 2 FEET
HEIGHT 8 FEET
TOTAL AREA OF ONE
RACK LxWxH 64 CUBIC FEET
ONE RACK CONTAIN FIVE SLOTS

ONE SLOT SIZE
LENGTH 4 FEET
WIDTH 2 FEET
HEIGHT 1.6 FEET
12.8 CUBIC
TOTAL AREA FEET
TOTAL AISLE AREA/ IN ONE AISLE 5 RACKS
TOTAL AREA OCCUPIED BY ONE AISLE/5 RACKS

LENGTH 20 FEET
WIDTH 2 FEET
40 SQUARE FEET
TOTAL RACKS 374

TOTAL AREA OCCUPIED BY TOTAL RACKS
23936 CUBIC FEET
TOTAL FREE AREA
TOTAL AREA BETWEEN SLOTS

TOTAL LENGTH 80 FEET

WIDTH 2.75 FEET
NO. OF SLOTS SPACES 9
TOTAL SPACE AREA BETWEEN SLOTS 1980 SQUARE FEET
TOTAL AREA BETWEEN ONE SEGMENT TO ANOTHER SEGMENT

SPACES BETWEEN THE ONE SEGMENT TO ANOTHER SEGMENT
LENGTH 4 FEET
WIDTH 69 FEET
NO. OF SPACES 3
TOTAL SPACE AREA BETWEEN SEGMENTS 828 SQUARE FEET
FEEE SPACE BETWEEN LAST SEGMENT TO WALL
LENGTH 100 FEET
WIDTH 4 FEET
TOTAL FREE AREA B/W LAST SEGMENT TO SQUARE
WALL 400 FEET
Total Area for F Square: 74520 Cubic feet
Numbers of floors = 3,
Total warehouse area 74520x3 = 223560 Cubic feet.
Ground Floor is dedicated to Logistics and Storage for the Coupon, F Square.
First floor is dedicated to Coupon.
Second floor is dedicated to F Square.
WAREHOUSE CAPACITY:
BRANDS PIECES
BLACK COFFEE 10000
MARK TAYLOR FORMAL SHIRTS 30000
MARK TAYLOR CASUAL SHIRTS 25000
MARK TAYLOR T-SHIRTS 35000
HIGHLANDOR SHIRTS 30000
HIGHLANDOR T SHIRTS 20000
LOCOMOTIVE SHIRTS 25000

LOCOMOTIVE T SHIRTS 40000
TOTAL 2,15,000
RACKS REQUIRE FOR LOCOMOTIVE SHIRTS

TOTAL SHIRTS INVENTORY 25000
1 SHELF CAPACITY 210
SO, TOTAL SHELF REQUIRE 119.0476
NOW, SHELF IN 1 RACK 5

SO, TOTAL RACK REQUIRE 23.809
BUFFER FOR UNDERUTILISED OF SHELFS DUE TO LARGE STYLES 10 %
BUFFER FOR OVERQUANTITY THAN DAILY AVERAGE DUE TO ORDER 10%
TOTAL BUFFER 20%
BUFFER RACKS REQUIRE 4.76
SO, TOTAL RACKS REQUIRE FOR LOCOMOTIVE CASUAL SHIRTS (INCLUDING

BUFFER) 28.571
TOTAL RACKS FOR CASUAL SHITRS 29
RACKS REQUIRE FOR LOCOMOTIVE T- SHIRTS:
TOTAL T-SHIRTS INVENTORY 40,000


BUFFER FOR UNDERUTILISED OF SHELFS DUE TO LARGE STYLES 10%
TOTAL BUFFER 20%

SO, TOTAL RACKS REQUIRE FOR LOCOMOTIVE T SHIRTS (INCLUDING BUFFER)

32
SO, TOTAL RACKS REQUIRE FOR LOCOMOTIVE BRAND 61
RACKS REQUIRE FOR HIGHLANDER CASUAL SHIRTS

1 SHELF CAPACITY 96

TOTAL BUFFER 20%

SO, TOTAL RACKS REQUIRE FOR HIGHLANDER CASUAL SHIRTS (INCLUDING
BUFFER) 75
RACKS REQUIRE FOR HIGHLANDER T- SHIRTS:


TOTAL BUFFER 20%


SO, TOTAL RACKS REQUIRE FOR HIGHLANDER T SHIRTS (INCLUDING BUFFER)
28
SO, TOTAL RACKS REQUIRE FOR HIGHLANDER BRAND 103
RACKS REQUIRE FOR MARK TAYLOR CASUAL SHIRTS


TOTAL BUFFER 20%
SO, TOTAL RACKS REQUIRE FOR MARK TAYLOR CASUAL SHIRTS (INCLUDING
BUFFER) 25
RACKS REQUIRE FOR MARK LAYLOR FORMAL SHIRTS:



TOTAL BUFFER 20%
SO, TOTAL RACKS REQUIRE FOR MARK TAYLOR FORMAL SHIRTS (INCLUDING
BUFFER) 65
TOTAL RACKS FOR FORMAL SHITRS 25
RACKS REQUIRE FOR MARK TAYLOR T- SHIRTS:


TOTAL BUFFER 20%

SO, TOTAL RACKS REQUIRE FOR MARK YAYLOR T SHIRTS (INCLUDING BUFFER)
20
SO, TOTAL RACKS REQUIRE FOR MARK TAYLOR BRAND 110

RACKS REQUIRE FOR BLACK COFFEE SHIRTS:


TOTAL BUFFER 20%
SO, TOTAL RACKS REQUIRE FOR BLACK COFFEE SHIRTS (INCLUDING BUFFER)
21.429
TOTAL RACKS FOR BLACK COFFEE SHITRS 22

TOTAL RACKS AND SHELF FOR F SQUARE ON 2ND FLOOR (EXISTING)
SEGMENT – 1:-
Total No. Of Aisle = 10

Total No of racks = 95
No of shelf in 1 rack = 5
Therefore, Total No of shelf in 1st segment = 475
SEGMENT – 2:-
Therefore, Total No of shelf in 2nd segment = 450
SEGMENT – 3:-
Therefore, Total No of shelf in 3rd segment = 475
SEGMENT – 4:-
Therefore, Total No of shelf in 4th segment = 475
TOTAL NO OF RACKS IN 2ND FLOOR 375

ND
TOTAL NO OF SHELFS IN 2 FLOOR = 1875

TOTAL RACKS AND SHELF FOR F SQUARE ON 2ND FLOOR (MODIFIED)
SEGMENT – 1: MARK TAYLOR SHIRTS

Therefore, Total No of shelf in 1st segment = 460
SEGMENT – 2: HIGHLANDER SHIRTS

Therefore, Total No of shelf in 2nd segment = 460
SEGMENT – 3: LOCOMOTIVE & BLACK COFFEE SHIRTS

Therefore, Total No of shelf in 3rd segment = 475
SEGMENT – 4: T SHIRTS (ALL BRANDS)

Therefore, Total No of shelf in 4th segment = 475
TOTAL NO OF RACKS IN 2ND FLOOR 374

ND
TOTAL NO OF SHELFS IN 2 FLOOR = 1870


BRAND ALLOCATION TO AVAILABLE RACKS ACCORDING TO SEGMENT (MODIFIED)
SEGMENT -1
AVAILABLE RACKS = 92
BRAND ALLOCATION = MARK TAYLOR
CATEGORY ALLOCATION = SHIRT
RACK REQUIRED FOR CASUAL SHIRT = 25
RACK REQUIRED FOR FORMAL SHIRT = 65
TOTAL RACK REQUIRE = 90
BALANCE RACKS = 2
SEGMENT -2
BRAND ALLOCATION = HIGHLANDER
RACK REQUIRED FOR CASUAL SHIRT = 75
RACK REQUIRED FOR FORMAL SHIRT = 0
BALANCE RACKS = 17
SEGMENT -3
BRAND ALLOCATION = BLACK COFFEE & LOCOMOTIVE
RACK REQUIRED FOR BLACK COFFEE SHIRT = 22
RACK REQUIRED FOR LOCOMOTIVE SHIRT = 29
BALANCE RACKS = 41
SEGMENT -4
BRAND ALLOCATION = ALL BRANDS
CATEGORY ALLOCATION = T-SHIRTS
RACK REQUIRED FOR MARK TAYLOR T SHIRT = 32
RACK REQUIRED FOR LOCOMOTIVE T SHIRT = 29
RACK REQUIRED FOR HIGHLANDER T SHIRT = 28

BALANCE RACKS = 3
Size Identification: In the each and every rack define the size, according the size
availability of the brand wise; define the size number in racks.
SIZE 37
SIZE 39
SIZE 40
SIZE 42
SIZE 44
Slot Number:
Define the slot number according to segment, aisle, rack and shelf wise. It is the better
identification for the each segment and each brand.

Example:
SL 01 01 01 01
SEGMENT RACK NUMBER
AISLE SHELF
SECOND LEVEL









Work after Mid Jury:
 Want to develop pick detail model according to Barcode detail and Slot number.
 Want to develop model in a SQL form.




LR, Report, Syn

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

LR, Report, Syn

Загружено:

Авторское право:

Доступные форматы

Improving Inventory Control by Re-engineering of Warehouse.

Introduction of Ware House:

Developing an input-output model of a warehouse system to assess operational efficiency.

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 1

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 2

 The cost of holding the stock

Company using the different types of inventory,

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 3

Seasonal Inventory is built up to counter predictable variability in demand, companies using

Lowering Inventory Costs:

JUST-IN-TIME INVENTORY CONTROL:

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 4

Setting an Inventory Strategy

The Specific Identification Method, however, is cumbersome in situations where a company

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 6

Warehouse Layout & Design:

Order Picking In the Warehouse:

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 7

These two warehouse functions have opposing requirements.

LOW PICKING & HIGH

High Pick & High Storage

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 8

Low Pick & High Storage

High Pick & Low Storage

Low Pick & Low Storage

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 9

Solutions For Order Picking

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 10

Current Warehousing Problems

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 11

Measuring Tools for the re-engineering of the ware house

About 5’S: What is 5S ?

1. Seiri (Proper Arrangement and Clearing Up)

3. Seiso (Clean Up)

 Saving of searching time.

 Safety of workers in warehouse.

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 12

Before the re-engineering of warehouse I found that:

 Space utilization is not proper.

Advantages of Re-engineering Warehouse:

 Proper Space utilization.

 Shopper’s Stop Warehouse in Bangalore

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 13

 To change the existing layout.

 Eliminate the extra work during process.

 Better utilization of the space.

 Replenishment in the picking area.

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 14

1. Analyze the existing Layout process.

2. Conducting secondary research to find out the warehousing system

3. .Analyze the existing Inventory manages system.

4. Use the quality tools for implementation in ware house

5. Define the Standard Operating Procedure of the Warehouse.

Supply Chain Management (Strategy, Planning & Operation)

BY: Mr. Sunil Chopra

Production and Operation Management (manufacturing and services)

BY: Mr. Richards B. Chase

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 15

Company Name: PRATEEK LIFESTYLE LTD

Factory Size (Sq.meters): Above 100,000 square meters

Vijay Pratap Gautam, M.F.Tech-IV Sem, Nift-bangalore Page 16

Present form of Inventory:

FINISHED GOODS: Finished goods classify according to brands: