CHAPTER 11

Materials Handling,
Computerization and
Packaging
 11-2 a
Materials Handling
Equipment - Manual

• Racks • Shelving
– Conventional pallet • Drawers
racks
– Drive-in racks • Mobile racking or
– Drive-through racks shelving
– High-rise racks
– Cantilever racks
– Pallet stacking frames
– Stacking racks
– Gravity-flow racks

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 11-3 b
Materials Handling Equipment - 11-2

Automated
• Unit load AS/RS
• Car-in-lane
• Miniload AS/RS
• Horizontal carousels
• Vertical carousels
• Man-ride machines

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 Advantages of Automated 11-4
11-3

Materials Handling Systems

• Operating cost savings

• Improved service levels
• Increased control through more and
better information

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 Disadvantages of Automated 11-5
11-4

Materials Handling Systems

• Initial capital costs • Lack of flexibility

• Downtime of • Maintenance cost
equipment • User interface/
• Maintenance training
interruptions • Worker acceptance
• Software-related • Obsolescence
problems
• Capacity problems

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 11-6
11-5
Operational and Implementation Problems
with Warehouse Automation Systems
Problem Area Percent Mentioning
1. Cost of equipment/financial justification 19.0%
2. Downtime or reliability of equipment/maintenance interruptions 10.0
3. Software-related problems, such as poor documentation, 8.0
incompatibility, failure or modification
4. Capacity problems, such as limited applications/integration of 8.0
equipment into existing system
5. Lack of flexibility to respond to changing environment/not suitable for 6.0
high degree of seasonality in business
6. Maintenance cost/ maintenance parts 5.0
7. User interface/training to operate system/transition from manual to 5.0
automated procedure
8. Worker acceptance of automation 4.0
9. No problems/ we are adapting well 4.0
10. Lack of top management commitment 3.0
11. Obsolescence/ need more up-to-date automation/ need more 3.0
automation

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 11-7
Warehousing in a JIT Environment 11-6

• Total commitment to quality

• Reduced production lot sizes
• Elimination of non-value-added
activities

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 11-8
Functions of Packaging 11-7

• Marketing • Logistics
» Information » Containment
» Promotion » Protection
» Apportionment
» Unitization
» Convenience
» Communication

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 11-9
Benefits of Good Packaging 11-8

• Lighter packaging may save transportation costs.

• Careful planning of packaging size/cube may allow
better space utilization.
• More protective packaging may reduce damage and
requirements for special handling.
• Environmentally conscious packaging may save
disposal costs and improve the company’s image.
• Returnable containers provide cost savings and
environmental benefits.

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 11-10
Technologies of the 11-9

Modern Warehouse
• Warehouse management systems (WMSs)
• Radio frequency communication and inventory update
• Bar-code reading and label generation equipment
• EDI and the Internet
• Transportation management systems
• Interface to enterprise requirements planning (ERP)
systems
• Productivity tracking software
• Activity-based costing software

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 11-11
Information Flows 11-10

in the Supply Chain

Order (or complaint) information
Delivery Appointment
Order/complaint information information

Supplier Supplier Inbound Manufacturer Supplier Customer

Carrier
warehouse carrier warehouse
Order
information
Pickup schedule

Supplier communication
Manufacturer communication
Warehouse communication
Carrier communication
Customer communication

Source: Arnold Maltz, the Changing Role of Warehousing (Oak Brook,IL:

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Warehousing 2001 by The McGraw-Hill
and Research Companies,
Council, Inc. All rights reserved.
1998), p. 27.