Storage

and
Warehouse Systems
Presented By: Guardian, Ellen Jane C.
Barrios, Jio A.
 1: INTRODUCTION
The efficient and effective handling of materials
within various departments of a factory or another
suitable type of business requires keeping every section
of storage space accessible, selecting proper
placement of every inventory item, implementing
appropriate storage policies, and keeping adequate
control of these policies. This chapter represents an
effort to address various factors considered to be
relevant when designing a storage and warehouse
system; it also discusses fundamental principles
required for the formulation of practical and efficient
storage policies.
 A comprehensive storage system
includes the building housing the storage
facility, the storage medium, the dock
areas, the processing areas, the location of
inventory (supplies, intermediate
materials, and final products), the material
handling system, and the workers in
charge of storage operations.
These components must be effectively integrated in such a way as to
significantly reduce all relevant storage-related costs. These costs are
strongly dependent on the patterns allowed by the storage layout design to
move materials out of and into storage facilities.
 This chapter consists of eight sections, including this introduction.
Section 2 focuses on receiving and shipping operations. Section 3
describes and compares two popular storage policies, known as
dedicated and random storage policies. Section 4 introduces models for
storage capacity and Section 5 presents specific procedures for storage
capacity determination. Section 6 is devoted to dock planning and
design. Section 7 addresses the important topic of warehouse system
design. Section 8 provides basic considerations for determining the
dimensions of an automated storage and retrieval system.
 2: RECEIVING
AND SHIPPING
The two major traditional activities of a
storage process are receiving (inbound
operations) and shipping (outbound
operations). Receiving operations move
items from docks where they are unloaded
to warehouses. Shipping operations move
items from the warehouses to the area
where they will be loaded into the shipping
vehicles, usually trucks and railroad cars.
 Both types of operations are significantly affected by the
equipment selected and the movement pattern used to displace the
products, either from the receiving docks to warehouses, or vice versa.
The choice of means of transportation, the scheduling of transportation
activities, and the integration of storage and material handling
operations are the object of a total-system storage and warehousing
system design. The fundamental guiding principles are to save time,
reduce costs, minimize inventories, and speed up service.
Inbound processes typically include two operations—receiving
and putaway. Similarly, outbound processes typically include five
operations—processing, picking, checking, packing, and shipping. A
brief description of these operations is given next.
 Receiving and Putaway Operations
Receiving operations include all those performed from
the time the order is placed until the products are received at
the inbound dock of the warehouse. These operations actually
begin with a notification of the arrival of goods. Once the
products have arrived, they are unloaded and possibly staged
for subsequent putaway operations. Depending on the level of
technology, automation, and mechanization used, the
products may be scanned to register their arrival, to enable
ownership, and to record their availability to fulfill customer
demand. The products should be inspected to detect damage,
incorrect counts, wrong descriptions, and the like. Products
typically arrive in larger units such as pallets, boxes, or other
types of containers. Receiving operations can account for
about 10 percent of operating costs.
Putaway operations start with the confirmation of the location,
order quantity, and product batch identification codes for the
incoming items. The main purpose of these activities is to
determine the most effective storage location for incoming
products. The overall putaway process usually consists of the
following operations:
1. Operations to ensure that the entire product receipt is validated
before products are prepared for their distribution.These operations
usually require large staging areas and may be significantly time
consuming.
2. Operations to allow some putaway to occur prior to receiving
every item on the purchase order. These operations usually require
the staging of each product by items. These operations require less
storage space and tend to consume less time.
3. Operations to place products directly in their final locations when
received. These operations focus on speedy movement of the
product to warehouse locations, and utilization of smaller staging
areas.
 Processing Customer Orders
Processing starts when a customer order is received.
Typical activities include verifying availability of items,
generating pick lists to consolidate the order,
scheduling order picking and shipping operations, and
documenting the entire process. Activities for grouping
and releasing orders for picking can be accomplished
by a warehouse management system (WMS), a large
software system that coordinates the activities of the
warehouse. A WMS has the capability of tracking and
controlling inventory and orders as they move through
the warehouse. Furthermore, it can provide workers with
more data to perform their jobs and helps firms get
better control over the entire distribution network, due to
its ability to generate real-time results.
 In addition to the previously described
activities, a comprehensive, state-of-the-art
WMS can consolidate back orders, handle rush
orders, trigger replenishment, and perform a
number of the functions required to keep orders
flowing smoothly and efficiently through the
warehouse. Being a dynamic planning tool, a
WMS can use demand patterns to adjust picking
operations and reconfigure stock locations as
necessary. A WMS can also generate data to
design an advance shipping notice, informing
customers of delivery times before the stock
physically leaves the dock.
 Order Picking
In the present context, the term
picking means retrieving. Order
picking is the process of selecting
and retrieving specified items from
a warehouse, in specified
quantities, to satisfy a customer
order. Depending on the type and
size of items to be retrieved, there
are five levels of order picking [8]:
 Order Picking
1. Pallet picking 2. Layer picking 3. Case picking 4. Split-case 5. Broken-case
(full pallets (full layers of (full cardboard picking (packs picking
from storage). cardboard boxes or from (individual
boxes or containers containers). items from
containers from storage). storage).
from pallets).
 Discrete Picking
This is the most common and simple
picking procedure. It is also known as order
picking because only one worker picks one
order of one type of product at any particular
time. Orders are retrieved at any time during
the specified shift. Discrete picking requires
only one picking document to be processed,
it minimizes risks of omitting items, it
promotes faster service, and it allows clear
accountability for the condition and
completeness of an order. Its major
disadvantage is the likelihood of long travel
times needed by the single pick
 Zone Picking
In this method the total picking area is divided
into several sections, one for each type of
product, and one picker is assigned to each
section. The picker assigned to any section
retrieves all the requirements for each order
calling for items in the section. All the
requirements from each zone are moved to a
special area, where individual orders are
assembled. Each picker works on one order at a
time and, as in discrete picking, the picking period
is the same as the length of the specified shift.
Depending on the order according to which the
sections or zones are considered, two classes can
be identified for this procedure:
 Zone Picking
(a) in sequential zone picking the
order progresses from one zone to
the next, skipping those without
requirements included in the
order;

(b) in simultaneous zone picking

items are picked simultaneously
from each zone or section and the
order is assembled when all
requirements have been
retrieved.
 Group Picking
In this procedure, one picker is in charge of retrieving items of
one type of product at a time for a group of orders. Once all
requirements for a product are retrieved, they are divided among
the orders. This operation may take place at the picking place or
in a specialized area. As in the previous methods, the picking
period is the same as the shift.
 Wave Picking
In wave picking, as in discrete picking, one picker is assigned
to each order, considering the requirements of one type of
product at a time. However, the shift is divided into several picking
periods, each period being dedicated to a group of orders.
 Combined Picking Procedures
The above basic procedures can be combined in different ways.
Examples of typical combinations are provided below, emphasizing
the choices for the three fundamental parameters used to describe
the procedures:
(a) Combine the zone and group picking procedures: multiple
pickers, multiple types of product picked at a time, one picking period
per shift.
(b) Combine the zone and wave picking procedures: multiple pickers,
single type of product picked at a time, multiple picking periods per
shift.
(c) Combine the zone, group, and wave picking procedures: multiple
pickers, multiple types of product picked at a time, multiple picking
periods per shift.
 In the first combination, each picker is responsible for retrieving
requirements stored in a zone or section for a group of orders. In the
second combination, each picker is assigned to a zone as well but
picks all requirements for products in the zone, one order at a time.
Finally, in the third combination, one picker is assigned to each zone,
retrieving all requirements of products included in several orders.
Order picking is the most critical of all distribution operations. Olson
[8] provides a very interesting and informative treatment of this topic,
including industry trends, principles of order picking, picking
procedures, conventional order-picking systems, automated picking
systems, selection considerations, and implementation. The reader is
encouraged to read Olson’s article.
Packing and
Shipping
Shipping includes all operations
that are performed from the time an
order is placed by a customer until
the products are finally shipped.
Packing is an activity that supports
the shipping process by putting items
in a protective container, usually a
case, package, or a pallet, with the
purpose of shipping them to a
customer
 Since the packer handles each piece of a customer order, packing is
usually labor intensive. During the process of placing the items in the
container, it is convenient to verify the completeness and accuracy of each
order. Order accuracy is a key measure of effectiveness of service to the
customer. Inaccurate orders not only indicate poor customer service quality
but also cause returns, adding to the workload of storage and material
handling operators, increasing costs, and lowering the effectiveness of
distribution efforts.
An effective packing process requires sound coordination to guarantee
that all the items or products included in an order are available for packing
at the scheduled time and ready to be delivered to the customer using as
few containers as possible. Otherwise, partial shipments will have to be
staged, waiting completion before packing. Only in special circumstances
should the packing and shipping of partial orders be allowed.
 Shipping practices may have important consequences for an entire
organization. The underlying concept stressed here is customer service
quality. Integrating this concept with those of product quality and
economic pricing may transform an organization into a great one,
enjoying
(a) Increased customer satisfaction.
(b) Reduced delivery times and errors.
(c) Increased sales order throughput.

These goals can be advanced through the following shipping practices:

(a) Streamlining the order configuration process.
(b) Providing management visibility to the orders in process.
(c) Avoiding configuration errors and shipment delays.
 Cross
Docking
Cross docking in the retail and
trucking industries refers to the logistics
of directly moving finished product from
the manufacturing plant to the
customer with minimum material
handling efforts. It is effected by placing
pallets on lanes corresponding to the
receiving doors, sorting the pallets into
shipping lanes, and loading them into
outbound trailers.
 Cross docking essentially eliminates the inventory-holding function of
a warehouse while still allowing it to serve its consolidation and shipping
functions. Benefits derived from cross-docking include:
(a) Reduction of the need for handling and storing inventory.
(b) Increased emphasis on satisfying demand in a timely manner.
(c) Streamlining of the supply chain.
(d) Reduction of operating costs.
(e) Increased throughput.
(f) Reduction of product damage and product obsolescence.
To yield these benefits, cross docking requires an effective information
system. Depending on its purpose, cross docking takes several forms,
including manufacturing cross docking, distributor cross docking,
transportation cross docking, and retail cross docking. Products arriving from
the vendor already have a customer assigned, so shipments need only be
moved from the inbound to an outbound trailer.
 3: DEDICATED AND RANDOM
STORAGE
Storage warehousing can be implemented in three ways, depending on the
particular storage conditions required. First, space can be rented in a public warehouse
on the basis of storage volume for a specified time period, without any capital investment
for equipment. Second, when there is a long-term storage need, a warehouse can be
leased. This decision might require some investment for handling equipment. Third, a
company whose main business is other than warehousing can operate a private
warehouse as a separate division. Although this option has several advantages over the
other two, owning a warehouse and handling equipment may result in substantial fixed
and variable costs. The storage capacity of a warehouse is defined as the amount of
storage space required to accommodate the materials to be stored in order to meet a
desired service level. Storage capacity depends rather significantly on the type of storage
policy being used. The two most utilized storage policies are dedicated storage and
random storage.
 Dedicated
Storage
Each product unit load is assigned to a fixed
location based on throughput and storage space
required. The main advantage of dedicated
storage is the data handling efficiency, as each
product has a predetermined address. The guiding
principle to storing items under this policy is that
the products responsible for more of the travel
activity between the warehouse and the docks
should be assigned to locations closer to docks.
 The following notation will be used to formulate a mathematical
model that considers a measure of effectiveness defined as the
minimization of the total expected distance traveled:
 Therefore, a heuristic procedure for solving this
model can be sketched as follows:
(a) Order the products according to their decreasing
values.
(b) Find the values of (expected distance traveled between
location k and docks).
(c) Assign the locations in the warehouse to products
according to their f-values
from lowest to highest.
 Example 1
The dimensions of a rectangular warehouse are The warehouse
has one shipping and receiving dock located at the northeast corner of
the layout. Two products A and B are going to be stored using a
dedicated-storage strategy. The total number of pallets per week
(input/output activity) for product A is 100, and for product B it is 80.
Furthermore, product A requires 10 storage bays, each having
dimensions of Product B requires 4 storage bays of the same dimension.
Find the optimal warehouse layout, assuming rectangular distances.
Provide a sketch of your layout.
 Solution
(a) Product A has and Product B has Therefore, the products will be
considered in the ordered sequence B, A.1

(b) Find the values of (expected distance traveled between the center
of location k and the dock). These values are shown below:
(c) Assign the locations to products according to their f-values from
lowest to highest. First, Product B is assigned the four locations with f-
values equal to 10, 20, 20, 30, and 30, respectively. Afterward, Product
A is assigned 10 locations with values equal to 30, 30, 40, 40, 40, 40,
50, 50, and 50, respectively. The final layout is shown below:
Assigning bays first to product B and then to product A, using the
expected distance as the criterion to be minimized, the following
results are obtained. It can be verified that there are alternative
optimal solutions.
 Random
Storage
Incoming items are equally likely to be stored among
all available storage spaces. In practice, incoming items
are stored in the available location that is closest to the
input/output point (usually a dock). Under the
assumption that the storage locations are highly utilized,
indicated by a high rate of product moves into and out of
storage locations, most actual warehouse operations
can be modeled using a random storage policy.The main
advantage of random storage is a better utilization of the
available storage space.
4: MODELS FOR
DETERMINING
STORAGE CAPACITY
This section considers two approaches
to determine the required capacity of a
storage facility. The first approach is based
on the desired service level, and the second
on the total storage cost of the facility.These
two approaches are discussed by Francis et
al.
 Service-Level Approach
The amount of storage space is minimized subject to the
constraint that a specified probability of space shortage, a (0 < a
< 1) is not exceeded. The probability is known as the service level.
A space shortage occurs when the available space capacity is
insufficient to accommodate a storage space requirement. It is
assumed that the shortage is met using leased storage space.
Let Xi, i = 1, . . . , n be random variables representing the
inventory level of item i, and let X = Σi Χi, It is assumed that Xi
follows a uniform distribution, Xi ~ U (ai, bi), i = 1, . . . ,n. Without any
loss in generality, it will be assumed that the items are labeled in
nonincreasing order of The storage capacity at service level
represented by the symbol is defined by means of the
probabilistic statement P(X ≤ S (a)) ≥ 1 - a.
 FIGURE 1
Piecewise storage-
cost function.
 Cost-Based Approach
According to this approach, the total storage space is found
by minimizing the sum of costs associated with owned storage
space and contracted storage space for accommodating space
shortages regardless of service level. The total storage cost
usually includes a fixed and a variable component. The fixed cost
is incurred when purchasing material handling equipment. The
variable cost is given per storage area unit.

Figure 1 illustrates the piecewise linear cost function used in

determination of storage-capacity requirements. It is assumed
that the required storage capacity can be satisfied with owned
and leased storage area. The following notation is illustrated in
Figure 1 for the own storage case:
5: STORAGE CAPACITY
DETERMINATION
Two policies will be considered: (a) randomized storage and (b)
full turnover-based storage. According to the first policy, incoming items
are equally likely to be stored in any available location, often the available
location that is closest to a dock. According to the second policy, items
with larger ratios of activity levels to storage space are allocated to
locations closer to a dock. The storage capacity for both policies will be
determined by minimizing the total storage cost while satisfying the
desired service level. The following discussion is extracted and adapted
from an article on procedures for finding storage capacity by Lee and
Elsayed [7], assuming independent replenishment of items.
 Randomized Storage Policy
It is assumed that represents the storage area required by item i=
1,2, . . . , n; furthermore, it is assumed that all Xi’s are
independently and uniformly distributed between ai and bi. Thus,
the density function for Xi, is:
 For each breakpoint of the piecewise linear cost function
introduced before, the value of can be determined by solving
Equation (12) for the owned-space case, and Eq. (13) for the leased-
space case. In Equation (12) the storage capacity defined in
Equation (11) is set to be equal to the initial point Oi of the ith owned
storage-space interval. In Equation (13) the expected amount of
space shortage is set equal to the initial point of the jth leased
storage-space interval.
6: DOCK PLANNING
AND DESIGN
Docks are the most utilized facilities in a
warehouse system. Material is transferred from
storage locations to a dock before shipping
activities or from a dock to storage locations
after receiving activities. The objective of dock
design is to make the transportation of materials
between the warehouse and the bed of the
carrier safe and efficient. The carrier bed may be
elevated by the carrier’s wheel and the axle
structure.
 As a result, often the warehouse floor must be brought to the
same level to permit material handling equipment to traverse
back and forth over a bridge, dock plate, or dock lever connecting
the warehouse and the carrier levels. Usually, this is achieved by
elevating the warehouse floor, or by gradually lowering the level of
the carrier. The remainder of this chapter is based on the work by
A. J. Templer on dock planning and design [12]. The three factors
that need to be considered in planning the loading dock are: (a)
dock location and design, (b) dock leveler selection, (c) safety.
The main terms used in dock planning are (a) loading platform,
(b) parking area, (c) maneuvering area, (d) apron space. These
terms are illustrated in Figure 2.
 FIGURE 2
Illustration of dock
planning terminology.
 Dock Location
In general, the facilities planning process includes
two major components: design and location. The
location of a dock should be chosen with the goal of
minimizing the in-plant traffic and ensuring safe
movement of trucks in and out of facility grounds. The
following factors can influence the selection of the
site for a dock:
(a) Truck access.
(b) Waiting areas.
(c) Loading areas.
(d) Maneuvering space.
 Truck Access
Trucks should move around the building
in a counterclockwise direction. The
following traffic standards should be
ensured: (a) Wide-angle mirrors are
specified for turning blind corners. (b)
Speed limits are posted. (c) Pedestrian
and vehicle flows are routed separately.
(d) Roadways are separately designed
for truck traffic and flow of employees.
(e) Parking is prohibited in areas
associated with limited vision.
 Waiting Areas
There should be a waiting area
adjacent to the dock large enough to
handle the anticipated number of
vehicles. Waiting and parking areas
should be properly designed to avoid
conflict with the area reserved for
maneuvering the vehicles.
 Loading Areas
These areas are specified for parking
the tractor-trailer combinations during
loading and unloading. For each dock its
loading area should extend at least 65 feet
in front of the dock and 3 feet on each
side.
Maneuvering Areas
These areas are required to allow
changes in the direction and position of
large tractor-trailer combinations around
the dock. The total maneuvering area of a
dock should extend at least 70 feet
outward from the loading area. For a
counterclockwise traffic flow, the
maneuvering area should extend at least
120 feet from the dock, assuming a
tractor-trailer combination length of 65
feet.
 Types of Dock
Locations:
There are two basic
strategies to combine docks:

(a) Receiving and shipping docks are combined in the same general
location at a storage facility. This is mainly done for small plants where
relatively small parts need to be handled. The major problem associated
with this strategy is the substantial amount of material flow and vehicular
traffic resulting from the combined location of shipping and receiving
activities.
(b) Receiving and shipping docks are assigned individual separate
locations, usually when the receiving and shipping activities are
performed at different sides of the storage facility.
 Types of Docks
Five dock configurations are commonly used: enclosed docks, open
docks, sawtooth docks, dock piers, and freestanding docks.

Enclosed Dock. In this type of dock the loading or

unloading tractor-trailer combination is parked in
an area delimited by a wall on each side and a
roof.Vehicles are parked perpendicularly to the
building wall, inside this area, and dock levelers are
usually needed for each vehicle as an interface
between the vehicle and the loading/unloading
platform. Enclosed docks offer optimal protection
from the weather and provide security
 Types of Docks
Five dock configurations are commonly used: enclosed docks, open
docks, sawtooth docks, dock piers, and freestanding docks.

Open Dock. In this type of dock the

tractor-trailer combination is parked in an
area with no walls on the side and no roof.
Sufficient space must be available
between loading ramps and the building
wall to enable forklift maneuvering.
 Types of Docks
Five dock configurations are commonly used: enclosed docks, open
docks, sawtooth docks, dock piers, and freestanding docks.

Sawtooth Dock. This type of dock is used

when the size of the area for maneuvering the
vehicle is limited. The vehicles are positioned
at an angle to the building to reduce the
apron space required. As can be observed in
Figure 3, this type of dock requires more linear
wall space than a perpendicular design.
 Types of Docks
Five dock configurations are commonly used: enclosed docks, open
docks, sawtooth docks, dock piers, and freestanding docks.

Dock Pier. Dock piers are usually built when it

is not possible to position docks along the
perimeter of the building. Dock piers must be
large enough to safely handle forklift traffic.A
dock pier is shown in Figure 4. Dock piers can
have enclosed or open designs.
 Types of Docks
Five dock configurations are commonly used: enclosed docks, open
docks, sawtooth docks, dock piers, and freestanding docks.

Freestanding Dock. A freestanding

structure outside the building can be
constructed, as illustrated in Figure 5, when
the available space is limited or an
obstacle impedes the construction of a
loading dock.
 Dock Design
The primary objective of dock design is to minimize the difference
between the heights of the dock platform and the trailer bed. An
effective design allows a diversity of vehicles to be used. In particular,
the following truck dimensions need to be considered: truck or trailer
bed height, total truck height, total truck width, and rear axle settings.

FIGURE 3
Sawtooth
dock.
Table 1 shows typical truck dimensions. It must be noted that
the trailer and bed heights will vary by as much as from their
loaded to unloaded conditions,and sometimes more when air
suspension systems are used. The most appropriate dock
height can be determined by analyzing the bed heights of the
trucks that utilize the dock to determine an average height.
Table 2 gives suggested dock heights for level docks [12]
 Dock Levelers
Dock levelers are platformlike devices used to bridge the gap between the
dock and the trailer during loading and unloading by moving up or down to
meet the trailer bed. This allows material handling trucks, such as forklifts, to
make a smooth, safe transition into and out of the trailer. Dock levelers can
also enhance safety and productivity on the dock through a variety of design
features.

FIGURE 4
Dock pier.
 Dock Levelers
Dock levelers are platformlike devices used to bridge the gap between the
dock and the trailer during loading and unloading by moving up or down to
meet the trailer bed. This allows material handling trucks, such as forklifts, to
make a smooth, safe transition into and out of the trailer. Dock levelers can
also enhance safety and productivity on the dock through a variety of design
features.

FIGURE 5
Freestanding
dock.
 There are four major types of dock levelers: edge-of-dock,
front-of-dock, vertical storing, and recessed levelers. The most
important factors affecting the selection of a particular dock leveler
are: the specific needs to be satisfied; operators’ safety; operational
requirements; initial investment and maintenance costs; durability
and reliability; and manufacturer’s support.
(a) Edge-of-Dock Leveler. This is an economical kind of
leveler that attaches permanently to the front of the dock. An
illustration is shown in Figure 6, where A is a dock bumper
projection, B is an outer lip, C is an inner lip, and D is a bumper
pad (one on each side). The leveler has guards that keep feet
under a ramp and comes in several designs, including
mechanical, electric, and hydraulic designs. The mechanical
leveler is operated by hooking a lip that is pulled up and
extended to provide a platform or surface that is
subsequently lowered to the level of the bed of the
loading/unloading vehicle. It serves only a narrow range of
truck and trailer heights with a minimum dock height of 48
inches.
FIGURE 6
Edge-of-dock
leveler.
(b) Front-of-Dock Leveler. Like the edge-of-dock leveler, this
type also has a limited range of height differential between
dock and vehicle. Although it is bolted to the concrete wall at
the front of the dock, it can be easily relocated. An illustration
is shown in Figure 7.

FIGURE 7
Front-of-
dock leveler.
(c) Vertical Storing Dock Leveler. This type of leveler, designed to
eliminate obstructions in a pit which is parallel to the building, allows
the vehicle to back against the building without opening the trailer
doors. The leveler is configured for installation on the top of the dock.
Its design allows the leveler to rotate from a raised position to a
lowered operating position. An illustration is shown in Figure 8.

FIGURE 8
Vertical
storing dock
leveler.
(d) Recessed Dock Leveler. This type is designed to be
installed in a pit formed at the dock location. It has a greater
operating range above and below the dock level. It can also
allow the access of wide trucks and trailers. Additionally, it has
the highest load capacity and long service life. An illustration
is shown in Figure 9.

FIGURE 9
Recessed
dock leveler
 Dock Safety
Dock safety is the result of a successful integration of a diversity of factors,
with particular emphasis on dock design, effectiveness of truck restraint,
information and communication, lighting conditions, and training programs.
When properly combined, these factors promote the following benefits:

(a) Significant reduction of cross-traffic interference.

(b) Proper location of staging and storing areas away from the dock area.
(c) Adequate lighting conditions.
(d) A good communication system between dock workers and truck drivers.
(e) Significant increase of the protection level required for the operation of all
material handling equipment.
7: WAREHOUSE SYSTEMS DESIGN
All warehouses perform at least four basic functions: (a)
receive goods, (b) store and protect the goods until they are
needed, (c) pick the product according to customer requirements,
and (d) prepare the items to be shipped to the customer. An efficient
design of a warehouse depends largely on the proper selection and
utilization of the warehouse equipment. Ultimately, the design of
warehouse is mostly based on the market it is intended to serve.
 Storage Equipment
The three main types of material handling equipment are often used
in carrying out warehousing operations. The lift truck is perhaps the
most versatile of these, since it can move horizontally and vertically,
travel along varying paths, and with appropriate attachments can
perform a wide range of pick-up, turn, push, and pull operations.
Conveyors are best used for moving high-volume items in a fairly
constant flow along a fixed route. Finally, cranes and hoists provide an
effective and versatile way to perform lifting, loading, and unloading
operations associated with overhead locations. In addition, specialized
equipment is often required to conduct the operations of a warehouse.
Most of this equipment can be classified as carousels and rack storage
systems.
 Carousels
The carousel is a most ingenious material handling device. It is
reliable, simple, and highly efficient.The density of storage associated
with its use is exceptionally high. Furthermore, it can be located in areas
where no other utilization seems to be likely, such as overhead locations
in dry cleaning stores. Perhaps its biggest advantage is its effectiveness
in bringing the inventory to the order picker instead of having the order
picker traveling to the inventory location.
 Carousels are almost always set up in groups of two or
three to facilitate picking operations when conducted by a single
picker walking down multiple aisles between carousels. Although
picking hourly rates can vary from 80–200 operations per person,
the effective rate may be less because of the need to perform
restocking during picking operations.A frequent limitation is the
requirement that only one picker can access the carousel at any
given time. Depending on the space available, three types of
carousels are frequently used: (a) horizontal carousels, (b) vertical
carousels, and (c) independent rack carousels.
 Horizontal
Carousel
A horizontal carousel is a linked series of rotating bins of
adjustable shelves driven on the top or bottom by a motor. Rotation
takes place around an axis perpendicular to the floor at
approximately 80 feet per minute. Order pickers, able to control the
rotation speed, are located at fixed positions in front of the carousel
to remove items from it. Horizontal carousels vary in length from 15
to 100 feet and in height from 6 to 25 feet. Heights over 6 feet
require the use of ladders or robot arms on vertical masts to
access the items. A horizontal carousel is illustrated in Figure 10.
 Carousels can be controlled manually and automatically. Manual
control is achieved by means of a keypad and a foot pedal. The keypad
indicates to the carousel which bin location is to be rotated forward, and
the pedal frees the carousel to rotate. In the case of automatic control, a
sequence of pick locations stored in the memory unit of a computer is
retrieved and executed.
Besides enabling a high pick rate, horizontal carousels offer a way to
enhance space utilization, since little space is required between adjacent
carousels, and the only lost space is that between parallel sections of bins
on the carousel unit. One important disadvantage of horizontal carousels is
that the shelves and bins are open. Consequently, item security and
protection can be a problem. The price of a carousel unit starts around
$5000 and increases with the number of bins and the weight capacity.
FIGURE 10
Horizontal
carousel.
 Vertical Carousel
This type of carousel is in essence a horizontal carousel turned to a
vertical position and placed in a sheet metal open-front enclosure. As in the
case of horizontal carousels, an order picker can operate one or more units.
The carousel height typically ranges from 8 to 35 feet.
A vertical carousel is illustrated in Figure 11. Order pick times for vertical
carousels are in theory less than those for horizontal carousels, because of
the elimination of stooping and reaching activities. Additionally, vertical
carousels can help to reduce the search time and to promote more precise
picking. Benefits resulting from the utilization of vertical carousels include
outstanding item protection and effective product security, since only one
shelf of product is exposed at a time, and the carousel can be locked up.
 FIGURE 11
Vertical carousel.
 Independent
Rack Carousel
Independent rotating rack carousels are in principle multiple
one-level horizontal carousels stacked on top of one another, with
each level having a separate power and communication link to be
able to rotate independently. The order picker may access several
locations at any time, allowing for continuous picking.
Rack Storage Systems
The rack storage system is frequently used as a storage
facility in warehousing, mainly because it is highly cost effective and
promotes an efficient utilization of vertical space. The most widely
used storage facilities of this type include: walkthrough rack storage
devices, push-back rack storage systems, very narrow racks,
structural drive-in racks, gravity-flow racks, mobile racks, double-
deep racks, rollout shelf racks, reel racks, and cantilever racks.
 The walkthrough rack storage system permits immediate
accessibility to every pallet load in the system and sets a standard
for rigidity, strength, and durability. An illustration is shown in Figure
12. This type of storage facility is available in a large range of sizes
and capabilities.

FIGURE 12
Walkthrough rack
storage system.
 The push-back rack storage system derives its name from the fact
that the pallet loads are literally pushed back into the rack. When a pallet
load is retrieved at the aisle, the deeper pallet load automatically
advances to the aisle. An illustration is shown in Figure 13. Specially
designed forklift trucks can operate in aisles less than five feet wide,
creating in turn a demand for very-narrow-aisle (VNA) storage racks. They
provide a significant reduction in floor aisle space due to designs with
heights of 40 to 50 feet.

FIGURE 13
Push-back rack.
 The pallets in VNA systems are accessed with turret or side
loader lift trucks. Some VNA systems are designed with top and
bottom monorails. An illustration of this type of storage facility is
shown in Figure 14.

FIGURE 14
VNA rack.
 The structural drive-in rack is used for large items stored
in cartons that can be stacked one over the other, forming high
columns of product. An illustration is shown in Figure 15.

FIGURE 15
Structural drive-in
rack.
 The gravity-flow rack, illustrated in Figure 16, serves
principally as a storage device but also as a means to transfer parts
in the rows of the rack itself without much effort.

FIGURE 16
Gravity-flow rack.
 The mobile rack, is a very high-
density storage system allowing full
utilization of pallet positions. The system
consists of 100 percent selective back-
to-back pallet racks mounted on mobile
bases that travel on racks laid into the
floor. The storage carriages are driven by
electric motors and can be moved
individually or as a section, permitting
access to any pallet at any time. Mobile
racks are particularly effective where
aisle space is at a premium and speed of
product movement is not a major FIGURE 17
Mobile rack.
concern. An illustration is shown in Figure
17.
 The double-deep storage rack is
a popular choice for high-throughput
storage operations. In addition to having
low cost, it promotes high levels of
productivity and product protection. The
rack is designed to allow the placement,
by means of a deep-reach lift truck, of a
pallet in the back of the storage system
followed by the placement of another
pallet in front of it. Twice as many pallets
are stored for a given number of aisles
when compared to the single-rack
system. An illustration is shown in Figure FIGURE 18
Double-deep rack.
18.
 A rollout shelf rack is a specialized type of storage device used
for relatively smaller parts that must be handled carefully. An
illustration is shown in Figure 19.

FIGURE 19
Rollout-shelf rack.
 Reel racks can provide
a separate and special
storage for cables and
wires in reels. An illustration
is shown in Figure 20.

FIGURE 20
Reel rack.
 Cantilever racks are used for
relatively lightweight parts. Bulky and
lightweight product is especially
suitable for storage using this type of
storage rack design. An illustration is
shown in Figure 21.

FIGURE 21
Cantilever rack.
8: AUTOMATED STORAGE AND
RETRIEVAL SYSTEMS (AS/RS)
This section introduces automated systems used for integrated
storage and retrieval operations. Some design considerations and an
illustrative numerical example are provided in this discussion, which
has been adapted from work by Sule [11]. AS/RS’s have a significant
effect on the performance of a storage and warehousing facility when
integrated into manufacturing and distribution processes with the aid
of a computerized system. Each storage and retrieval (S/R) machine
operates in a single aisle and services storage racks on each side of
the aisle.
 A vertical stack of unit loads forming
a column of product from the floor up to
the ceiling of the storage facility is
known as a bay. A group of bays placed
side by side forms a row. Stacker cranes
move along the aisles between the
rows, serving both sides of the aisle. An
aisle is illustrated in Figure 22(a). Light
loads of less than 2500 pounds require
a 6-inch clearance for rack support and
crane entry. Heavier loads require 9
inches.
FIGURE 22
Aisle of AS/RS
system.
FIGURE 22
Aisle of AS/RS
system.
 The AS/RS, illustrated in Fig. 22, consists of storage and retrieval
cranes, storage structure, conveying devices, and controls. The cranes
travel on floor-mounted rails and can simultaneously move in the
horizontal and vertical directions to reach specified locations. They may
be equipped to function in single-command mode (store or retrieve) or
double-command mode (store and retrieve) in one trip. The storage
structure (up to 90 feet) has guide rails that allow the cranes to move in
and out, stopping at required locations.
 Specialized devices, such as forklift trucks, conveyors, towlines, and
guided vehicles, are auxiliary equipment interfacing with the
storage/retrieval cranes and several departments within the plant. The
control unit consists mostly of computers and support mechanisms that
regulate the functions and performance of the storage/retrieval cranes
and auxiliary devices. Typically, a distributed system consists of several
small computers communicating with one large computer. The individual
computers control separate devices, and the larger computer is in
charge of inventory maintenance and other activities such as cost
calculation and billing information.
 The number of cranes needed is determined by the following
formula, where T is the throughput, C represents the number of cycles per
hour, and E is the efficiency of the operation:

In Equation (32) the throughput is the sum of the maximum number

of loads in and loads out carried per hour; the number of cycles is usually
32 for single-cycle cranes and 22 for double-cycle cranes; and the
efficiency rate is commonly equal to 0.85. An important factor affecting
the height of the storage system is the number of unit loads vertically
stacked in each bay (column of unit loads). If the height of the building H
is given, the number V of unit loads vertically stacked can be calculated
as
 In Equation (33) h represents the load height and c represents the
clearance between stacks.The desired value is the integer part of the
calculation.The subtraction of 1 is to allow for floor and ceiling clearance. If
this clearance is specified in advance, there is no need for the
subtraction. If U is the number of load units to be stored, the number of
bays per row is calculated as

Note that the number of rows is equal to 2N.

 The width of the storage system depends on both the number of
cranes (or aisles) and the width of the aisle unit, which is defined as an
aisle and two neighboring storage racks.Therefore, the width of the aisle
unit is equal to twice the storage width (which is the same as the depth or
length of the unit load, here to be represented by ) plus the aisle width
(which should accommodate the length of the load) plus clearance.
Thus, the width of the system is equal to (at least) 3 times the length of
the unit load plus 2 feet for clearance:
 The length of the storage rack is equal to the combined width of
the bay w and clearance b between bays multiplied by the number of
bays in a row, plus the crane runout clearance:

In Equation (36), the crane runout clearance r is usually 25 feet.

 Example 3
A manufacturing company wishes to store a unit on a pallet
having a weight of 1400 lb and 75 dual cycles per hour. The total storage
is 18,000 unit loads. The height of the building is 80 feet, but clearances
of 4.5 feet from the ceiling and 6 inches from the floor for rack support
are needed. (a) Determine the number of stacks that can be
accommodated with height of the load. (b) Determine the number of
dual cranes needed. (22 cycles per hour). (c) Determine the number of
bays needed. (d) Determine the storage dimensions. Consider a
clearance equal to 6 inches between stacks and an availability factor of
85 percent for cranes.
 Solution
(a) The number of loads vertically stacked per bay is obtained using
formula (33) without subtracting 1, since the clearance is specified in
advance. After setting H = 80 - 14.5 + 0.52 = 75, then V = 75>12 + 0.52
= 30.
(b) The number of dual cranes is obtained using formula (32), N =
75>122 * 0.852 = 4.01 = 5 cranes. Thus, number of rows is equal to 10.
(c) Using Equation (34), the number of bays per row is B = 18,000>110
* 302 = 60.
(d) The dimensions of the storage system are determined as follows.
The width is obtained using Equation (35), W = 5[3142 + 2] = 70 feet.
The length is obtained using formula (36), L = 13 + 0.52 * 60 + 25 =
235 feet. The height was given, 80 feet.
 9: EXERCISES
1. Suppose that a 40-foot by 40-foot warehouse is used to store
products P and Q under a dedicated storage policy. The floor can be
represented as a grid with 10-foot by 10- foot cells, each cell
corresponding to one storage-space unit. In this grid, the bottom left
corner represents the location of a dock. Pallets of products are
moved between a dock and the warehouse, along rectilinear
distances. The first product accounts for about 30 percent of the total
travel activity and the second one for the remaining 70 percent. The
first product requires typically six storage-space units per day and
the second product nine per day. Find the policy that minimizes total
travel distance.
2. A warehouse 200 feet long and 100 feet wide has three docks
located as shown in the figure below, where the distance between
rows of storage locations is negligible. Two products are to be stored.
Product A enters the warehouse at dock 1 at a rate of 600 pallet loads
per month and is shipped from docks 2 and 3 at rates of 120 and 480
pallet loads per month, respectively. Product B enters the warehouse
at dock 1 at a rate of 1000 pallet loads per month and is shipped from
docks 2 and 3 at rates of 200 and 800 pallet loads per month,
respectively. Storage spaces of 8000 and 12,000 square feet are
required for A and B, respectively. The warehouse is arranged into
bays 20 feet by 20 feet, and only one type of product can be stored in
a given bay.
 Assume rectilinear travel. (a) Determine the order in which the
products should be considered when assigning storage locations. (b)
Find the expected distance traveled between storage location 1 (top
left cell) and the docks.
3. Consider a rectangular warehouse layout with 10- by 10-foot
storage bays. The layout consists of four rows and four columns of
bays. One dock is located at the top left corner of the layout. Two
classes of products A and B are to be stored using dedicated storage.
Class A items represent 20 percent of the input/output activity and
require 8 storage bays. Class B items represent 80 percent of the
input/output activity and require 8 storage bays. Design an optimal
layout. Include all work needed to support your answer.
4. Suppose the storage area for a warehouse is as shown below. Two
input/output docks serve the storage area, with the overall activity
being about 50 percent for each dock. All movement is in full-pallet
quantities. The storage area is subdivided into 10- by 10- foot storage
bays. Three classes of products are to be stored. Class A items
represent 20 percent of the input/output activity and have a
dedicated-storage requirement of 3 bays; class B items generate 65
percent of the trip activity and have a dedicated-storage
requirement of 6 bays; class C items generate 15 percent of the
input/output activity and have a requirement of 5 bays.
 Indicate the optimal warehouse layout, showing all supporting
calculations.
5. Consider a rectangular warehouse of dimension 3 by 3 bays. Each
storage bay is of size 20 X 20 feet. There are two products, A and B,
and one dock located at the middle of the left-hand side of the
warehouse. Product A requires 4 and product B 3 storage locations.
Product A represents 20 percent and Product B 80 percent of
the input/output activity. (a) Find the optimum dedicated-storage
layout. (b) Find the expected distance traveled for dedicated storage.
(c) If randomized storage is used, such that each bay is equally likely
to be used for storage, find the expected distance traveled. (d)
Compute an upper bound for randomized storage that will yield an
expected distance traveled equal to or less than that for dedicated
storage.
6. Assume that each of two items has storage-area requirements
uniformly distributed between 20 and 300. Consider a piecewise
linear cost function with two linear segments. For owned storage
space, the first segment is defined between 0 and 100 with fixed cost
equal to 12 and variable cost equal to 20. The second segment is
defined between 100 and 300 with fixed cost 20 and variable cost 15.
For leased storage space the first segment is defined between 0 and
150 with fixed cost of 5 and variable cost of 40. The second segment is
defined between 150 and 300 with fixed cost of 7 and variable cost of
30. (a) Plot both curves. (b) Find the probability of a shortage. (c) Find
the level of service. (d) Formulate a model for minimizing total
storage-space costs. (e) Find the optimal solution. If desired, use a
commercially available optimization program.
7. A manufacturing company wishes to store a unit on a pallet having
a weight of 2800 lb. The throughput is 75 dual cycles per hour. The
total storage is 15,000 unit loads. The height of the building is A total
floor and ceiling clearance of is needed. Determine the storage
dimensions. Write all specific assumptions.
8. A manufacturing company wishes to store a unit on a pallet having
a weight of 1400 lb and 75 dual cycles per hour. The total storage is
15,000 unit loads. The height of the building is but clearances of from
the ceiling and from the floor for rack support are needed. (a)
Determine the number of stacks that can be accommodated with the
given height of the load. (b) Determine the number of dual cranes
needed. (c) Determine the number of bays needed. (d) Determine the
storage dimensions. Consider a clearance equal to between stacks
and an availability factor of 85 percent for cranes.
8. A manufacturing company wishes to store a unit on a pallet having
a weight of 1400 lb and 75 dual cycles per hour. The total storage is
15,000 unit loads. The height of the building is but clearances of from
the ceiling and from the floor for rack support are needed. (a)
Determine the number of stacks that can be accommodated with the
given height of the load. (b) Determine the number of dual cranes
needed. (c) Determine the number of bays needed. (d) Determine the
storage dimensions. Consider a clearance equal to between stacks
and an availability factor of 85 percent for cranes.
9. Describe each type of storage device discussed in this chapter. For
each device, outline typical applications, advantages, and
disadvantages.

10. Describe each type of dock design considered in this chapter. For
each design, outline typical applications, advantages, and
disadvantages.
 THANKS
FOR LISTENING !