Chapter 4 Storage System

Chapter-4
Storage system
1
Storage Systems
1. Storage System Performance and

Location Strategies
2. Conventional Storage Methods and
Equipment
3. Automated Storage Systems and
analysis.
Storage Systems
Function – to store materials (e.g., parts,
work-in-process, finished goods) for a
period of time and permit retrieval when
required
 Used in factories, warehouses, distribution
centers, wholesale dealerships, and retail
stores
 Important supply chain component
 Automation available to improve efficiency
Types of materials to be stored
Storage System Performance
Performance measures for storage systems:

 Storage capacity - two measures:
 Total volumetric space
 Total number of storage compartments (e.g., unit loads)
 Storage density - volumetric space available for storage
relative to total volumetric space in facility
 Accessibility - capability to access any item in storage
 System throughput - hourly rate of storage/retrieval
transactions
 Utilization and availability (reliability)
6
Storage Location Strategies
Each item types stored in warehouse is known as Stock keeping
unit (SKU)
Two strategies: 1. Randomized, and 2. Dedicated
Randomized storage –
. Incoming items are stored in any available location
. Usually means nearest available open location
 Dedicated storage –
Incoming items are assigned to specific locations in the
storage facility
 Typical bases for deciding locations:
 Items stored in item number sequence
 Items stored according to activity level
 Items stored according to activity-to-space ratios
Inventory Level as a Function of
Time
10
Comparison of Storage
Strategies
 Less total space is required in a storage system that uses a
randomized storage strategy
 Dedicated storage requires space for maximum
inventory level of each item
 Higher throughput rates are achieved in a system that uses
dedicated storage strategy based on activity level
 The most active items can be located near the
input/output point
 Compromise: Class-based dedicated storage
 Items divided into classes according to activity level
 Random storage strategy used within each class
Conventional Storage Methods
 Bulk storage - storage in an open floor area
 Problem: achieving proper balance between storage
density and accessibility
 Rack systems - structure with racks for pallet loads
 Permits vertical stacking of materials
 Shelving and bins - horizontal platforms in structural
frame
 Steel shelving comes in standard sizes
 Finding items can be a problem
 Drawer storage - entire contents of each drawer can be
viewed
Bulk Storage
Bulk storage arrangements:

(a) high-density bulk storage provides low accessibility,
(b) bulk storage with loads forming rows and blocks for improved accessibility
(c) Low cost per sq meter
Pallet Rack System
Pallet loads placed on
racks in multi-rack
structure
(a) Low cost
(b) Good stroge density
(c) Good accessibility
Drawer Storage
 Contents easily
visible
 Good accessibility
 Relatively high
cost
Small items (tools,

repair parts, etc.)
Automated Storage Systems
Mechanized and automated storage equipment to
reduce the human resources required to operate a
storage facility
 Significant investment
 Level of automation varies
 In mechanized systems, an operator
participates in each storage/retrieval
transaction
 In highly automated systems, loads are entered
or retrieved under computer control
Objectives and Reasons for Automating
Storage Operations
 To increase storage capacity

 To increase storage density
 To recover factory floor space currently used for
WIP
 To improve security and reduce pilferage
 To reduce labor cost and/or increase productivity
 To improve safety
 To improve inventory control
 To improve stock rotation
 To improve customer service
 To increase throughput
18
Types of Automated Storage
System
1. Automated Storage/Retrieval
System (AS/RS)
 Rack system with mechanized or
automated crane to store/retrieve loads
2. Carousel Storage System
 Oval conveyor system with bins to contain
individual items
AS/RS
Unit load
on pallet
AS/RS
with one
aisle
AS/RS Types
 Unit load AS/RS - large automated system for pallet loads
 Deep-lane AS/RS - uses flow-through racks and fewer
access aisles
 Miniload AS/RS - handles small loads contained in bins or
drawers to perform order picking
 Man-on-board AS/RS - human operator rides on the
carriage to pick individual items from storage
 Automated item retrieval system - picks individual items
 Vertical lift storage modules (VLSM) - uses a vertical
aisle rather than a horizontal aisle as in other AS/RS types
AS/RS Applications
1. Unit load storage and retrieval
 Warehousing and distribution operations
 AS/RS types: unit load, deep lane (food industry)
2. Order picking
 AS/RS types: miniload, man-on-board, item retrieval
3. Work-in-process storage
 Helps to manage WIP in factory operations
 Buffer storage between operations with different
production rates
 Supports JIT manufacturing strategy
 Kitting of parts for assembly
Carousel Storage Systems
 Horizontal
 Operation is similar to overhead conveyor system
used in dry cleaning establishments
 Items are stored in bins suspended from the
conveyor
 Lengths range between 3 m and 30 m
 Horizontal is most common type
 Vertical
 Operates around a vertical conveyor loop
 Less floor space required, but overhead room must
be provided
Horizontal Carousel Storage
System
Manually operated
horizontal carousel
storage system
Carousel Applications
1. Storage and retrieval operations
 Order picking
 Kitting of parts for assembly
2. Transport and accumulation
 Progressive assembly with assembly stations
located around carousel
3. Work-in-process
 WIP applications in electronics industry are
common
4. Unique applications
 Example: time testing of electrical products
Engineering Analysis of
Automated Storage Systems
1. Automated Storage/Retrieval Systems
 Sizing the AS/RS
 AS/RS throughput analysis
2. Carousel storage systems
 Storage capacity
 Throughput analysis
27
Fixed aisle automated system
28
29
AS/RS throughput
30
31
32
33
34
35
Carousel storage system
36
37
Throughput Analysis
38
39
40
41
Self-study
42

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Chapter-4

1. Storage System Performance and

Performance measures for storage systems:

Bulk storage arrangements:

Small items (tools,

 To increase storage capacity

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