Warehouse

Under storage is understood in production and logistics, the storage of material as a responsibility of materials management. Storage means the intentional interruption of the flow of material, that is, there arise buffer stocks consciously formed. The storage requires a warehouse, that is, a room, a building or an area that can be stored in the goods, and is a central topic of inventory management.

As an industry it's called being the storage warehousing, it falls under the systematic NACE Section I Transport and storage ( Rev 2, 2010).

  • 7.1 Inventory intensity
  • 7.2 Average stock
  • 7.3 Inventory turnover
  • 7.4 Average duration of storage
  • 7.5 Interest bearing
  • 7.6 average inventory / stock availability
  • 7.7 Stocking rate
  • 7.8 storage utilization
  • 7.9 Service level
  • 7:10 capital commitment
  • 7:11 ratios of means of transport use
  • 7:12 Additional descriptive parameters of the bearing
  • 8.1 Conflicts of storage
  • 8.2 Determination of the necessary inventory 8.2.1 The sector comparison
  • 8.2.2 batches Half
  • 8.2.3 Low- value principle

Subject of the storage

Storage objects can be

  • Tools (tool output separately for capital goods, such as machinery, and consumer goods such as supplies, office supplies ),
  • Means of production (internal warehousing / logistics with ext. Suppliers) and
  • Products, either wholly or partially completed ( Manufacturing, warehouse, picking, shipping department, external forwarding )
  • Tools that are consumed, but not enter the product.
  • Transportation which are only kept for transporting products and usually return.

Staff is not stored, but at best kept internally or externally. Thus, the features, strategies and optimization methods of storage on staff are not applicable.

Functions of the storage

If the purchase amount is greater than the quantity of production, so the excess material for production is supported by the regression function. A warehouse is being used as an intermediate storage to keep the flow of materials stable in the flow rates, ie to compensate for fluctuations in the purchasing or sales market.

In the Deployment documentation or the range function, the storage contributes to span the range. As such, the deployment feature supplements the compensatory function, as this would be bypassed parts of the range, where discrepancy between quantities of obtaining and selling there.

When the backup function when insufficient information about future quantity requirements, supply and demand time points exist in the enterprise, the bearing is used to ensure the production. This may be the case if products that are characterized by supply shortages or seasonal fluctuations, must be procured.

The processing function is also called the production function of the bearing which only allows subsequent processing. A refinement function is created when the storage causes a change of the product and part of the production process (eg: wine, cheese, ham, wood, whiskey, ...) is.

Reasons for the speculation function of the bearing can be predictable extreme price fluctuations in the procurement market or very low cost prices. In addition, it can be speculated by ordering large quantities and discounts obtained thereby with stock items. However, this may have a negative impact in a fall in prices of goods also, eg hardware.

An economy of scale function satisfies the camp because it allows orders to several pieces and thus can reduce the ordering costs per unit.

To environmental protection include the

  • Redemption and collection of returnable packaging and recyclable materials as part of the " dual system " (DSD )
  • Redemption and collection of used products for reproduction or re-use, recycling or disposal
  • Safe storage of hazardous materials

Storage strategies or procedures

In the FIFO principle (First In - First Out) are the first stored goods also in turn outsource first. This avoids you " shop keeper ". This is the most common strategy.

When LIFO principle (Last In - First Out) to be outsourced, the last stored supplies first. In general this is undesirable but sometimes inevitably the consequence of the bearing design.

In the food industry, in medicine or sterile goods is outsourced even after expiry date ( First Expired - First Out, FEFO ).

Other storage strategies, Hifo principle ( Highest In - First Out), Lofoten principle (Lowest In - First Out) play a minor role.

Bearing types

The classification of the bearing can be produced by various criteria:

  • Envelope bearing ( by turnover )
  • Stock stock ( inventory related stock)
  • Distribution depot (after distribution)
  • Verwahrlager ( for safekeeping )
  • Special bearings (other)

Warehouse location

The planning of the storage locations must be done under the assumption that the production sites must be continuously supplied with the necessary materials:

In the fixed storage space allocation fixed storage bins are provided for each item, which are reserved only for those products ( " like to like "). The advantage is the easy identifiability of the storage location. Due to the fluctuating over time inventory levels for each item a fixed part of the allocated storage space is not used, resulting in a poor utilization of the storage capacity.

With dynamic storage space allocation (open warehouse system), the articles are stored in a free storage space. The embedding takes place arbitrarily or according to specified parameters. An advantage of this method is that when a problem occurs, for example, in a warehouse aisle, the same material can be removed from another warehouse aisle. The biggest advantage, however, is a very high utilization of storage capacity. In order to ensure future access to the inventory item, however, the storage places must be clearly documented. This can be done with a storage compartment card, which then stores the data in the computer system or the storage bin is specified by a warehouse management system. In the chaotic storage of hazardous substances (eg certain adhesives, process chemicals ) Restrictions and prohibitions on storage must be considered to avoid dangerous reactions in case of incidents can be avoided.

- After administrative structure

  • Self storage
  • Foreign stock

- After the centralization

In the choice of storage sites must be decided whether the stock is centralized or decentralized. When deciding on the centralization of the spatial aspect is often crucial:

Central storage means the spatial summary of all storage functions and all stored goods under a single management. The benefits that arise from the central storage, are facilitating the receipt of goods, the management, conservation, inventory identification and appraisal. Other points are the low capital commitment of current assets less inventories and lower occupancy costs.

In distributed storage, the use of substances at the site of need support in the form of temporary storage (buffer stock) are stored. The main advantages of this method are bearing the greater flexibility, more accurate disposition of the individual materials in the production areas and the shorter transport routes.

- According to the embodiment

  • Gas storage (storage for gases )
  • Pressure tank, water tower (storage for liquids)
  • Silo (storage for bulk materials )
  • Block storage, eg for container
  • High-bay warehouse and automated small parts warehouse
  • Free warehouse
  • Floor bearing
  • High -floor storage
  • Paternoster
  • Ground storage, eg for heavy goods
  • Honeycomb storage ( for bar or slab )
  • Tower bearings ( for slab or bar stock )
  • Hand bearing ( for Bedarfsgut )
  • For bearings with special protection there is also the - originally from the Arab military affairs - Print magazine.

- According to the stored goods

  • Packaged goods storage, bulk storage
  • Long Goods, flat goods
  • Hazardous material storage
  • Cold storage

Stocks

A stock of such is the quantity of a good located at a certain time in the camp. The following special stocks are important:

  • Minimum holding
  • Reorder
  • Maximum or maximum stock

The minimum stock level ( in practice safety stock or obsolete inventory iron / Reserve ) is the stock, which must not be exceeded in order to maintain the production / delivery in emergencies. The minimum stock is on the material and / or distributor for all in height. It generally covers the risk of futures or infidelity quality of the supplier. Upon reaching the reporting backlog by withdrawals from storage during automatic scheduling a message to the shopping to replenish the camp - triggered - by placing an order. The reorder thus determines the required due date. See also: sediment analysis, order policy

The maximum or maximum stock is the stock that may be present maximum storage in order to prevent high costs and high capital commitment.

Optimal stock = The optimal inventory enables smooth operation and causes low storage costs. The optimal inventory must be coordinated with the optimal order quantity.

Stock indices

Inventory intensity

The inventory intensity measures the ratio of inventories to sales or business assets.

Average stock

The average inventory indicates how high the stocks are on average over the course of a fiscal year. It can be calculated as the quantity variable or value size.

If only the published accounts of a company are available, one often uses the following, less accurate formula. The formula considers only the existing at the balance sheet date, inventories and thus has a significant inaccuracy. It is used mainly by external analysts in the balance sheet analysis.

Inventory turnover

The inventory turnover ratio indicates the ratio of consumption / unit time and the average stock, and therefore how often shows a bearing within a certain time unit has been completely filled and emptied. The measure can be determined quantity or value terms. Low values ​​indicate a long residence time of the material in the warehouse and are an indication of high safety stocks. This has a negative effect on the capital employed.

Or

Average duration of storage

The average storage time provides information on the situation in the camp and the development of capital tied up in stock. Ie It shows how long the stocks - and of course the capital needed for this - are bound in the average stock. The shorter the shelf life of a product / component the better, since the bearings caused ongoing cost, space required and this can increase the cost of products.

Or

Bearing interest rate

The storage rate indicates how much percent interest costs tied up in the average stock of capital during the average duration of storage.

Example: (10% * 200 days) / 360 days = 5.55% for 200 days The interest bearing or the bearing interest indicate how much interest escapes the contractor during the storage period. The capital is tied up in stock and therefore can not be applied to interest. To calculate the bearing of the bearing interest rate shall be used.

Example: Bearing interest = value of the average inventory * bearing interest rate € 5000 * 5.55% = € 277.50 for 200 days Average inventory / stock availability

The average inventory indicates how long the average inventory is sufficient for an average consumption per period. The average inventory can also be calculated for a specific date (eg beginning of the quarter ).

Example: 20 pcs / 0,117 pcs per day = 171 days Average consumption per day = ( cost of sales / 360 days) 42 pieces / 360 days ~ 0.117 stocking rate

The stocking rate is the ratio of the number of the retained to the total number of procured material items.

Stocking rate = number of stockpiled items / total number of purchased products

Storage utilization

The storage utilization rate shows the ratio of unused to available space. The code covers both congestion ( overcrowding ) and poor utilization on ( excess capacity ).

Example: Land use degree = ( unused storage space / warehouse space available ) Space efficiency = ( unused storeroom / warehouse space available ) Service level

The service level of the bearing can be measured by the average time between the demand requirement and the provision of the material (external service level ) or on the average time between the statement of funding and the position output (internal service level ).

Capital commitment

Capital employed is a measure of the non-liquid assets in an enterprise. For example: inventories, machinery and equipment.

Key figures of the means of transport use

Supplementary descriptive parameters of the bearing

Figures are for the company to create, in consultation with management and the management. Insignificant figures from a business perspective should be omitted. It is important to derive or default of planned figures from the figures, so that deviation analyzes are produced and corrections are introduced.

Essentially, according to Hartmann, Hoppe and Schwalbach following extended storage parameters are converted at the stock indicators mentioned above, adds. The functionality of the descriptive parameters of the bearing is lower in comparability to other companies or warehouses (see benchmark metrics ), to be stronger in more meaningful way about their state of preservation and the gain of knowledge for the viewer.

  • Value of the faltering stocks with an envelope of less than two per year in Euro
  • Consignment inventory from suppliers in euros and in percentage of the total stock
  • Foreign reserves of the suppliers in the home in EUR
  • No longer usable stocks in euro and percent
  • Age structure in percent per time class inventories
  • Proportion of new materials and expiring materials.
  • Parameters sediment. The portion of the stock, which has not been moved for a predetermined time.
  • Parameters Access valuated stock value = Delivered quantity x valuation price.
  • Parameters safety cushion. Made from the key figures of the middle range access and reach of the average inventory in access.
  • Parameters safety stock. Comparison of the value of average bank in access to ( quotients average bank in access and safety stock, which should be close to 1 ).
  • Parameter batch size. Compared with the middle range access and value of the average access.
  • Analysis by volume of the parts. Classification of materials in high-volume, medium-volume or low-volume parts.

Approaches to warehousing, inventory and stock analysis

Conflicting objectives of storage

Following Hartmann, the corporate development and management of a changing market landscape has to face. This includes getting shorter delivery time requirements, greater demands on the delivery service, increased flexibility of suppliers, more product variety, shorter product life cycles and fundamentally different requirement profiles to the suppliers due to globalization and offshoring. The way to do anything about bearing assemblies, inevitably leads to high capital commitment and declining liquidity. Other disadvantages to high inventories result from the change in risk for products, spoilage of the products (eg food ) and the costs for storage and management of stocks.

The stress fields of the department interests can subsequently be facing:

Determining the required inventory

The sector comparison

To define and interpret where the company is positioned with its stock, the knowledge of the industry comparison makes sense. The table of Hartmann presents a study of 1995, in which the inventories are presented in relation to sales by sector. The following stocks were called percentage of sales for these industries:

More recent data were presented in the publication of Harting in 2005. He notes that the value of the average inventories amounts to 14 percent of sales nationwide German companies.

Batches Half

A calculation of the "ideal inventory " is usually performed according to the bottom -up approach. This is based on the question how far the stock can be reduced without compromising the readiness for delivery. The theoretically optimal portfolio is determined by the safety stock plus half the optimal lot size. The bottom-up approach shows to general inventory strategies.

Target stock = ( (lot size / 2) safety stock) x Price / Piece

Low- value principle

The calculation of the ideal inventory can also be calculated using the top- down approach.

Target stock = ( stock of the lowest value within a period) x Price / Piece

To determine the computerized system takes you past the stock values ​​of a time period and selected each per item the lowest value out. Then, multiplying from the lowest value from the time period, with the price / unit. You get the lowest stock value within the selected time period per item. Then adds the individual results of all articles, give the ideal stock after the low value principle.

The warehouse, inventory and stock analysis

The relevant literature gives many theories on the formation of stocks. The following list is based on studies by Hartmann, Hoppe and Schwalbach:

  • Missing theming of stocks by the management and subordinated corporate stock targets
  • Transition from in-house production to external procurement ( offshoring )
  • Lack of training of dispatchers
  • Faulty batch sizes
  • Faulty safety stocks and some areas being added security thinking
  • Lack of coordination of supply chains and the intra - and inter-organizational business processes
  • Missing data integration technology
  • Lack of delivery of the supplier
  • Failure to work on the stocks lack of knowledge of the stock numbers
  • Lack of quality of the planning process
  • High range depth and width
  • Decoupling of the planning and control
  • Fuzzy Demand Planning, ignorance of paragraph changes and poor prognosis quality
  • Lack of organization

As tension following three-way relationship is established.

In other words, lack of input data lead to poor decisions of policy makers.

Approaches in a destocking, inventory reduction and supply reduction

Inventory problems can not be solved in isolation, but rather by the interaction of all involved in the process. It is also noted that many polluters of the stock do not have to answer for the consequences of their actions within the company in the direction of inventories or are not aware of. The responsibility and co-responsibility for the inventory level is often not attributed to a single person. An allocation of the shared responsibility for the stock and the determining triggering elements is missing. On the other hand, will be covered with inventories suboptimal conditions because weaknesses in the processes are veiled or not to light. The need and challenge of constantly working on the best process design, is missing.

Thus, a thematization of inventories is necessary in order to initiate the willingness to actively participate in inventory causes. The order should be issued by the company management, which must also support the team building. The influence of a lack of supply chain management (SCM ) and the fact substantiated effects of excessive inventories on the company's results were clear for the company in the 70s. Due to the prevailing high interest rates, the companies were cash blocked by the debt service, based on the debt financing of inventories. During this time, companies responded with the first studies on the impact of the supply chain ( = supply chain ) and have come to realize that optimal inventory policy is dependent on the design of internal and inter-organizational business processes.

The following approaches to reduction were shortened and essentially taken from the designs of Schwalbach.

Appendix

Source

Statistical Classification of Economic Activities in the European Community Discrepancy theory Purchase order Logistic engineering Integrated Authority File
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