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Warehousing (หลักการและเครื่องมือช่วยวิเคราะห์)

Warehousing (หลักการและเครื่องมือช่วยวิเคราะห์). โดย: ผศ.ดร.บรรหาญ ลิลา ภาควิชาวิศวกรรมอุตสาหการ คณะวิศวกรรมศาสตร์ มหาวิทยาลัยบูรพา. Roles and Connections. Supply Chain & Logistics. Why holding inventory/ What are the role of warehouse in supply chain?. Why holding inventory?

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Warehousing (หลักการและเครื่องมือช่วยวิเคราะห์)

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  1. Warehousing(หลักการและเครื่องมือช่วยวิเคราะห์)Warehousing(หลักการและเครื่องมือช่วยวิเคราะห์) โดย: ผศ.ดร.บรรหาญ ลิลา ภาควิชาวิศวกรรมอุตสาหการ คณะวิศวกรรมศาสตร์ มหาวิทยาลัยบูรพา

  2. Roles and Connections

  3. Supply Chain & Logistics

  4. Why holding inventory/ What are the role of warehouse in supply chain? • Why holding inventory? • What are the role of warehouse in supply chain?

  5. The VALUE CHAIN Firm Infrastructure M A R G I N Human Resource Management Technology development Procurement Inbound Logistics Operations Outbound Logistics Marketing and Sales Service

  6. Strategic aspects of Business • Production • Product • Suppliers • Customers

  7. Customer Value • Customer Value • Quality • Service • Cost • Lead Time • Innovation • Safety • Environmental care • Competitive Priority • Quality • Service • Cost • Lead Time • Innovation • Safety • Environmental care

  8. Quality “performing right the first time and every time” • Meeting customer requirements • Fitness for purpose • Minimum variance • Eliminate waste • Continuous improvement culture

  9. Service “continually meeting the customer needs as the market changes” • Support availability • Product availability • Flexibility • Reliability • Consistency

  10. Cost “knowing the real costs and looking at how to reduce them” • Design of product • Manufacturing process • Distribution process • Administration process • Stock levels

  11. Lead time “knowing the real lead times and looking at how to reduce them” • Time to market • Time from order placement to the time it available to customer • Response to market forces • Days of stock cover

  12. Set of Questions for a Manager • Do you need a warehouse ? • Where should it be located? • Are all the future supply and demand requirements known? • Is the labor cost stable? • What products should be kept and how to store and handle them? • What is the target customer response time?

  13. Set of Questions for a Manager • What is our current customer response time? • Do you know the product location and does your information accurate? • Is the layout optimal? • What are the operational standard? • Should you outsource or manage it yourself? • Etc…

  14. Storage and warehousing • Aspects of focus • Space requirement • Location • Layout • Storage systems • Material handling equipment • Demand characteristics • Operations

  15. Space Requirement • Space for products, component parts, raw materials, consumables, material handling equipment, operator moving, load-unloading, buffers, shelves, isles, personnel. • Dependent on: • Type of equipment for handling • Quantity of items and duration of stay • Storage policy

  16. Location • Where should the warehouse be built? • How many warehouse must be built? • How large should each warehouse be? • What are the factors of concern? (location of manufacturing, customer bases, desire service level, renting or leasing, land cost, construction cost, taxes and insurance, etc.)

  17. Layout • Inputs • Storage policy • Demand characteristics • Material handling equipment • Costs • Types of products

  18. Layout • Approaches • Systematic Layout Planning (SLP) • Mathematical models • Basic and advanced algorithms

  19. Layout • Models • Single row layout • Multi-row layout with equal areas • Multi-row layout with unequal areas • Mixed integer model • etc • Algorithms • Heuristic Algorithm

  20. Storage Systems • Dedicated storage location policy • Randomized storage location policy • Class-based dedicated storage policy • Share storage policy • Etc.

  21. Material Handling Equipment • Unit load design • Types of MHD • Conveyors • Palletizers • Pallet lifting devices • Trucks • Robots • Automated Guided Vehicles (AGVs) • Jibs, Cranes and hoists • Warehouse material handling systems (WMHSs)

  22. Demand Characteristics • Investigation of the demands of all items to be stored in a warehouse in order that the layout, equipmentsystems can designed accordingly. • Aspects • How many for each item to be stored? • How long each item will stay? • What is a T/S ratio?

  23. Warehouse Operations • Receiving • Put away/Storage • Order Processing ---Picking • Dispatching

  24. Software in layout/warehouse modeling • CORELAP • CRAFT • BLOCPLAN • FactoryOPT • SPIRAL • LayOPT

  25. Transportation Model (problem) • Transportation model: is a type of application of optimization models generally found in the area of “Operations Research” • Problem Characteristics: • Product is transported from a number of sources to a number of destinationsat minimum possible cost. • Each source has fixed and limited supply while each destination has fixed demand.

  26. Supply Chain Management

  27. Supply Chain • All facilities, functions, activities, associated with flow and transformation of goods and services from raw materials to customer, as well as the associated information flows • An integrated group of processes to “source,” “make,” and “deliver” products

  28. Supply Chain Processes

  29. Value vs. Supply Chain • Value chain • every step from raw materials to the eventual end user • ultimate goal is delivery of maximum value to the end user • Supply chain • activities that get raw materials and subassemblies into manufacturing operation • Terms are used interchangeably

  30. Supply Chain Management (SCM) • Managing flow of information through supply chain in order to attain the level of synchronization that will make it more responsive to customer needs while lowering costs • Keys to effective SCM • information • communication • cooperation • trust

  31. One goal in SCM: respond to uncertainty in customer demand without creating costly excess inventory Negative effects of uncertainty lateness incomplete orders Inventory insurance against supply chain uncertainty Factors that contribute to uncertainty inaccurate demand forecasting long variable lead times late deliveries incomplete shipments product changes batch ordering price fluctuations and discounts inflated orders Supply Chain Uncertainty

  32. Bullwhip Effect Occurs when slight demand variability is magnified as information moves back upstream

  33. Information links all aspects of supply chain E-business replacement of physical business processes with electronic ones Electronic data interchange (EDI) a computer-to-computer exchange of business documents Bar code and point-of-sale data creates an instantaneous computer record of a sale Radio frequency identification (RFID) technology can send product data from an item to a reader via radio waves Internet allows companies to communicate with suppliers, customers, shippers and other businesses around the world, instantaneously Information Technology: A Supply Chain Enabler

  34. Supply Chain Integration • Information sharing among supply chain members • Reduced bullwhip effect • Early problem detection • Faster response • Builds trust and confidence • Collaborative planning, forecasting, replenishment, and design • Reduced bullwhip effect • Lower Costs (material, logistics, operating, etc.) • Higher capacity utilization • Improved customer service levels

  35. Supply Chain Integration (cont.) • Coordinated workflow, production and operations, procurement • Production efficiencies • Fast response • Improved service • Quicker to market • Adopt new business models and technologies • Penetration of new markets • Creation of new products • Improved efficiency • Mass customization

  36. Collaborative Planning, Forecasting, and Replenishment • Process for two or more companies in a supply chain to synchronize their demand forecasts into a single plan to meet customer demand • Parties electronically exchange • past sales trends • point-of-sale data • on-hand inventory • scheduled promotions • forecasts

  37. Suppliers • Procurement • purchase of goods and services from suppliers • On-demand (direct response) delivery • requires supplier to deliver goods when demanded by customer • Continuous replenishment • supplying orders in a short period of time according to a predetermined schedule • Cross-enterprise teams coordinate processes between company and supplier

  38. Outsourcing • Sourcing • selection of suppliers • Outsourcing • purchase of goods and services from an outside supplier • Core competencies • what a company does best • Single sourcing • a company purchases goods and services from only a few (or one) suppliers

  39. Distribution • Encompasses all channels, processes, and functions, including warehousing and transportation, that a product passes on its way to final customer • Often called logistics • Logistics • transportation and distribution of goods and services • Driving force today is speed • Particularly important for Internet dot-coms

  40. Distribution Centers (DC)and Warehousing • DCs are some of the largest business facilities in the United States • Trend is for more frequent orders in smaller quantities • Flow-through facilities and automated material handling • Postponement • final assembly and product configuration may be done at the DC

  41. Warehouse Management Systems • Highly automated system that runs day-to-day operations of a DC • Controls item putaway, picking, packing, and shipping • Features • transportation management • order management • yard management • labor management • warehouse optimization

  42. Vendor-Managed Inventory • Manufacturers generate orders, not distributors or retailers • Stocking information is accessed using EDI • A first step towards supply chain collaboration • Increased speed, reduced errors, and improved service

  43. SCM Software • Enterprise Resource Planning (ERP) • software that integrates components of a company by sharing and organizing information and data • SAP was first ERP software • mySAP.com • web enabled modules that allow collaboration between companies along the supply chain

  44. Measuring Supply Chain Performance • Key performance indicators • inventory turnover • cost of annual sales per inventory unit • inventory days of supply • total value of all items being held in inventory • fill rate • fraction of orders filled by a distribution center within a specific time period

  45. Cost of goods sold Inventory turns = Average aggregate value of inventory Average aggregate value of inventory = = X (unit value item i) (average inventory for item i) Average aggregate value of inventory Days of supply = (Costs of goods sold)/(365 days) Key Performance Indicators

  46. $425, 000, 000 = 12.3 Inventory turns = $34,416,000 $34,416,000 = 29.6 Days of supply = ($425,000,000)/(365) Key Performance Indicators: Example Cost of goods sold: $425 million Production materials and parts: $4,629,000 Work-in-process: $17,465,000 Finished goods: $12,322,000 Total average aggregate value of inventory (2+3+4): $34,416,000

  47. Other Measures of Supply Chain Performance • Process Control • used to monitor and control any process in supply chain • Supply Chain Operations Reference (SCOR) • establish targets to achieve “best in class” performance

  48. SCOR Model Processes Plan Develop a course of action that best meets sourcing, production and delivery requirements Source Procure goods and services to meet planned or actual demand Make Transform product to a finished state to meet planned or actual demand Deliver Provide products to meet demand, including order management, transportation and distribution Return Return products, post-delivery customer support

  49. SCOR: Customer Facing Performance Attribute Performance Metric Definition Supply Chain Delivery Reliability Delivery performance Percentage of orders delivered on time and in full to the customer Fill rate Percentage of orders shipped within24 hours of order receipt Perfect order fulfillment Percentage of orders delivered on time and in full, perfectly matched with order with no errors Supply Chain Responsiveness Order fulfillment lead time Number of days from order receipt to customer delivery Supply Chain Flexibility Supply chain response time Number of days for supply chain to respond to an unplanned significant change in demand without a cost penalty Production flexibility Number of days to achieve an unplanned 20% change in orders without a cost penalty

  50. SCOR: Internal Facing Performance Attribute Performance Metric Definition Supply Chain Cost Supply chain management cost Direct and indirect cost to plan, source and deliver products and services Cost of goods sold Direct cost of material and labor to produce a product or service Value-added productivity Direct material cost subtracted from revenue and divided by the number of employees, similar to sales per employee Warranty/returns processing cost Direct and indirect costs associated with returns including defective, planned maintenance and excess inventory Supply Chain Asset Management Efficiency Cash-to-cash cycle time Number of days that cash is tied up as working capital Inventory days of supply Number of days that cash is tied up as inventory Asset turns Revenue divided by total assets including working capital and fixed assets

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