Stoarge Systems

Storage Systems
TVSM / PED / MSE / MHSE
Slide 1
Concept of Stores
What happens in an Industry ??
Raw Materials
from Suppliers
Storage of
incoming
materials
Value Addition to
materials and
conversion to
Final product
Storage of
Finished Vehicles
Dispatch to
Customer via
Dealers
Slide 2
Concept of Stores
What is a Store?
A storage point of physical resources that a firm holds in stock with the intent of
selling it to the customer or transforming it into a more valuable state.
The physical resources may be
1.Raw Materials
2.Works-in-Process
3.Finished Goods
4.Maintenance, Repair supporting tools
Slide 3
Concept of Stores
Definition of Stores:
Design of a Store plays a significant role in directly deciding the profit of the firm.
How ? ? ?
Slide 4
Concept of Stores
How Stores influence the Profit ??
1.Nearly 60% to 70% of a companys direct investment is in the form of raw

materials.
Hence, deciding how much quantity of material to be stored is vital.
If Stores design allows for more stocks, then the amount of money locked up
will be more, leading to inconvenient business situations.
If the Stores design limits the stocks to minimal level, then smooth flow of
materials to production line will be affected during critical times leading to
Production losses.
2.Implementation of Lean Production with the help of Kanban and JIT tools is
possible only with a properly arranged Store.
Slide 5
Concept of Stores
In First place, Why Storage is needed?
As already said ,Storage of stocks is not encouraged, as it is practically equivalent
to Capital Investment lying idle.
However, an Inventory is a necessary evil that every organization would have to

maintain for various purposes.
Slide 6
Concept of Stores
Why Storage is needed?
1.The primary one is to meet variation in Production Demand.
The Stored stock gives a buffer between demand and supply.
Stock giving a
buffer between
Supply and
Demand
Slide 7
Concept of Stores
Why Storage is needed?
The various other reason are
1.To Take advantage of Quantity Discounts in larger lots.
2.To Reduce Transit Cost and Transit Times.
3.To cover up for emergencies.
4.To protect stock from pilferage, theft, evaporation, deterioration,
sublimation .
Holding inventories help to remain independent and free from vendor
dependencies.
Slide 8
Types of Stores
Stores are basically classified on the basis of

1.Purpose to which the Stored material is put to use
( Referred as FUNCTIONAL Stores)
2.Size and the Location of Storage

( Referred as PHYSICAL Stores)
Slide 9
Functional Stores
The following are the types of Functional Stores.
1.Raw materials store:
Obviously , the Store where the raw materials are stored.
This can be further classified as Castings store, Plastic parts Store, Bought Out parts
store depending on the type of raw materials.
2.Production Store:
The point where Consumables needed for production are stored
Examples for Consumables:
Eye-shields, cutting oils, abrasives, gloves, aprons.
Slide 10
Functional Stores
Tools Store:
Storage area for tools, files, measuring instruments, saws, hammers, pliers.
Packing material store:

Storage area for packing materials used for the packaging (Cartons, Steel
structures, Wooden Pallets) .
Slide 11
Functional Stores
Spare parts store:
Storage Area for spares usually required by Maintenance for repair or overhauling
of equipment and machinery in the factory.
Receipt Store:
The materials arriving from the Vendors are retained here until they are inspected,
finally accepted and sent on to the respective places for storage, or directly to where
they will be used.
Slide 12
Functional Stores
Work-in-progress Store( Super Market Storage):
-> Practically a particular shop produces an item in batches.
The other shops might not be able to reach this figure or the actual quantity required might
be less than the batch quantity.
-> Hence the semi-finished units are kept in the WIP Store for future use.
->This is neither raw materials nor finished goods.
Example:
Painting unit
paints 800
units/day
Work in Progress
Stores
Vehicle Assembly
requirement is only
700 units /day
100 Units/day
kept as WIP
Slide 13
Functional Stores
Finished Goods store:
Yeah, you guessed it right.
Finished products of the company meant for despatch to customers or for
transfer to another stock point or distribution center are kept here.
Stationary store:
Keeps office stationary items like pens, papers, pencils, notebooks, files
issued to various departments of the company.
Transit Sheds:
These are normally roofed sheds without any walls and open on four sides
and are mainly intended to protect goods from sun and rain
Slide 14
Physical Stores
Based on Physical Location, stores are classified as
1.Centralized stores :
The Common store from which materials are supplied to all departments.
2.Unit Stores or Decentralized Stores:

In this case, storage is made at each of the respective processing Units.
Examples:
Machining Stores, Painting Stores, Assembly Stores.
3.Centralized stores with sub-stores:

There is one central store which holds the stocks in general with separate sub
stores for each department which gets supply from the central stores.
Slide 15
Types of Stores
Centralized stores:
Advantages:
1. Better control & layout.
2. Less storage space is needed because stocks should be kept as low as possible.
3. Stock taking and Audit is easier.
4. As maintenance of record of same material need not be required in different
departments, less clerical work, stationery & other costs is involved.
Demerits:
1. Cost of internal transport is higher.
2. In the flow of materials to production, possibility of bottle-neck is there.
3. Risk of obsolescence is greater.
4. All the production departments are affected if any disturbance inside Stores
occurs.
Slide 16
Types of Stores
Decentralized stores:
Advantages:
1. Cost of internal transport is avoided.
2. Production is not affected by the disturbance in the central store.
3. Delay in getting the issues can be avoided.
4. Chance of obsolescence is lower.
Demerits:
1. Cost of organization & space is increased by separate cost for each
department.
2. Departmental members, in addition to their normal work, will have to
maintain the store.
3. Technical skill obtainable is less.
Slide 17
Types of Stores
3.Centralized stores with sub-stores:
In this case, a central store is located near the receiving department, & each
department has a sub store with it.
From the central store, the materials are received by the sub-store on imprest
system & issues to the department are made.
When, from the central store, work sites are fairly distant, this system is
essential.
Bottlenecks in the supply of materials for production are avoided by the
system.
However, the system is costlier than the centralized store.
Slide 18
Inventory
What is an Inventory?
Inventory refers to any kind of resource having economic value and is maintained to
fulfill the present and future needs of the Organization.
A few of them are Raw Materials, Semi Finished & Finished parts and Spare parts.
Simply put, the materials which are being stored in the above mentioned Stores with an
intention of Value Adding and Sales are Inventories.
In addition to that, Human resources employed and financial resources are also a part
of the Inventory.
Example other than Manufacturing Industries:
For a Hospital,
Number of Beds, Stock of Drugs kept, Surgical equipments, Specialized personnel are
the type of Inventories held.
Slide 19
Inventories and types

The inventories are classified into various types.
Types of Inventories :
Functionally Inventories are classified as
1.Cycle (or Lot Size) Inventories
2.Pipeline (or Transit) Inventories
3.Safety or Buffer Inventories
4.Seasonal Inventories
5.Decoupling Inventories
Slide 20
Types of Inventories
1.Cycle (or Lot Size) Inventories:
This type of inventory exist when production is done in larger quantities than the
actual immediate requirements needed to satisfy the Customer.
This inventory quantity is based on
1.Production Lot Size
2.Economical Shipment Quantities
3.Storage Space limitation
4.Replenishment lead times
5.Price Quantity Discount Schedules
6.Inventory Carrying Cost
Slide 21
2.Pipeline (or Transit ) Inventories:
The inventories created during the transportation from the distribution centres to
the Customers are called as Pipeline or Transit Inventories.
Since movement cannot be Instantaneous, the quantity of Pipeline Inventory
depends on
1.Time required for Transportation
2.Nature of Demand
These are also referred to as process inventories ,as the materials are actually
being worked on or moved between work centres.
.
I am on the Way !
Slide 22
Safety or Buffer Inventories:
The inventories created as a protection against uncertainties of demand quantity
and changes in delivery timings are called as Safety or buffer Inventories.
The level of extra inventory is determined by trade off between protection
against demand and supply uncertainties and the level of investment in safety
stock.
This will manage any unpredictable shortage with a high penalty cost.
Slide 23
Seasonal Inventories:
The seasonal inventories is needed for products whose market exhibit seasonal
patterns of demand and production varies with demand.
The manufacturers face peak demand where the production facility is unable to
meet the demand on a period by period basis.
Thus, the seasonal inventories are built up in advance or procured during the
period of low demand(on regular basis) to be used in the peak demand period.
Seasonal
inventory built up
to meet high
demand
160
140
120
100
80
60
Production
40
Demand
20
0
1
10
11
12
13
Slide 24
Seasonal Inventories:
However, the amount of inventories to be produced to meet the unexpected
demand should be determined by balancing the holding and shortage cost of
seasonal inventories.
Example:
The sale of TVS Pep and TVS Apache will be more during the College opening
seasons( April to July), than the regular days. Hence, seasonal inventories are
built up in prior to the same.
Other examples are agricultural products , calendars, and fashion items.
Slide 25
Decoupling Inventories:
If various manufacturing processes operate successively, then in the case of
breakdown of one or any disturbance at some stage can affect the entire
system. This kind of Interdependence is minimized by stocking inventory
between adjacent units.
This kind of Inventories are called as Decoupling Inventories.
They are further classified on the basis of
1.Raw materials and component parts
2. Work in Process Inventory
3.Finished Goods Inventory
4.Spare parts Inventory
Slide 26
1.Raw Materials and Component Parts:
This refers to the Inventory kept in the Raw materials store.
The raw material inventory kept is used to decouple between the Supplier and
the producer (Customer) against seasonal variations in demand and delay of
supplier parts.
2.Work in Process Inventory:
Do you remember this Picture??
This kind of Inventory stocked between production units are called as WIP
Inventories.
Slide 27
3.Finished Goods Inventory:
It is the inventory of the final products which could be released for the sale to the
customers.
The size of Inventory depends on
Demand,
Ability of the firm to sell the products,
Shelf life of the product and storage capacity
4.Spare Parts Inventory:
These are the parts which are used in the production process, but do not
become part of the product.
The size of the inventory depends on average life of the components.
Slide 28
Inventory Control Analysis:
Why Inventory Control Analysis is needed?
->In an organization where many no of items ( Say 15,000) are in its inventory
listing, it is not possible to control all items closely.
->Usually only a few (about 10% by number) contribute to 70 to 80% of
locked up whose availability is vital for sustenance of the process.
->These vital few items can be segregated for the closer control to ensure
productivity.
Slide 29
Distribution of Inventories in an Organization:
Total
contribution
percentage
The Vital
few
Total no of parts
Slide 30
Inventory control Analysis:
The inventory analysis models are classified on the
1.Basis of Annual consumption as ABC Analysis
2.Basis of Criticality of Production as VED Analysis
3.Basis of Availability as SDE Analysis
4.Basis of Weight/Cost permit as HML Analysis
5. Basis of Consumption rate as FSN Analysis.
Slide 31
1. ABC Analysis :
The Analysis consists of separating the inventory into 3 groups based on their
annual cost volume consumption( Unit Cost * Annual consumption).
They are
A - group items constitutes to 70% of the Annual consumption Cost.
B - group items constitutes to 20% of the Annual consumption Cost .
C - group items constitutes to 10% of the Annual consumption Cost .
After classification, the inventory control policies are made based on this
division.
A category Items require special managerial attention. Hence, fixed interval
inventory control system is used.
B category Items are not so costly as to require special attention, but these are
not cheap that to ignore over stocking.
Slide 32
1. ABC Analysis :
C items can be managed in a casual way.For these items, a fixed order
Quantity system is used.
The Order quantities can be relatively large without incurring excessive costs.
This is also referred as Always Better Control Analysis.
Slide 33
2.VED Analysis :
This analysis separates inventories based on Criticality as
1. Vital (V) -Stands for vital items when out of stock or when not readily
available, completely brings the production to a halt.
2.Essential (E) - for Essential items without which temporary losses of

production or dislocation of production work occurs.
3.Desirable (D) -denotes Desirable items all other items which are necessary
but do not cause any immediate effect on production.
Slide 34
3.Availabily ( SDE Analysis )
This analysis separates inventories based on Criticality as
S - refers to Scarce Items, especially imported and those which are
very much in short supply.
D - are Difficult items which are procurable in market but not easily
available.
Example:
Items which have to come from far off cities or where there is not much
competition in market or where good quality supplies are difficult to get or to be
procured.
E - refers to Easy items ,Items are those which are easily available;
mostly local items.
Slide 35
4.Weight/Cost permit ( HML Analysis )
The cost per item (per piece) is considered for this analysis.
High cost items (H),
Medium Cost items (M)
Low Cost item (L)
This helps in bringing controls over consumption at the departmental level.
Slide 36
5.Consumption rate ( FSN Analysis ):
Based on the consumption rate of the items used , they are classified as
F Fast Moving Inventory
S - Slow Moving Inventory
N Non Moving Inventory
This classification is based on the consumption pattern and therefore helps in
controlling obsolescence of the inventory by determining the distribution and
handling patterns.
Slide 37
Storage Facilities
How are the materials getting stored in Stores?
There are various modes for Storing Inventories.
1.Crates
2.Pallets
3.Totes and Bins
4.Heavy Duty Storage Racks
5.Vertical Narrow Aisle Storage systems
Slide 38
Storage Facilities
6.Multi tier mezzanine systems
7.Lean Lifts
8.Over Head Conveyors
9.Drive in Rack Systems
10. ASRS Systems
11.Vertical Carousel Systems
We will see them in detail later..
Slide 39
Storage Facilities
How do we select the Appropriate Storage Facility ?
This depends on
1.Quantity of inventory handled at a time ( Unit Load ).
2.Type of Material handled and their Specific Requirements
3.Requirements at the User Area.
Slide 40
Storage Facilities
Why Should I SELECT a storage facility ?
1. To ensure the that the Products stored serves its purpose at the User Area
without affecting its value ( Quality).
Example:
If sensitive parts like Headlamp, Rear View Mirror ,painted parts of a vehicle are
stored without attention, it causes Dent, Scratch and Scoring marks in the part ,
making it not usable for the Vehicle Assembly.
These cant be easily reworked( or Cost of rework is very high ) and is directly
loss of money to the company.
2.Safety of the storage environment.
The products such as CNG, LPG cylinders are locked in its location to ensure the
elimination of chances for an accident leading to Heavy losses
Slide 41
Consideration for creation of Stores

Implementing a carefully structured, cost-effective Store, will inevitably see an
organisation through to its long term business objectives and provide tangible
financial pay backs.
The key metrics involved in the designing of a store and their importance are as
follows:
Stock Keeping Unit (SKU):

An SKU is a unique combination of all the attributes of the components that are
assembled into the purchasable item.
Therefore, any change in the packaging or product is a new SKU.
This level of detailed specification assists in managing inventory.
Slide 42

The other important terms are
1.Reorder level,
2.Buffer Stock,
3.Reorder Quantity,
4.Reorder level for a stock,
5. Lead time
Slide 43
Inventory Analysis (Fixed Qty. Order Approach)

Inventory
= Reorder level Average demand during lead time + order lot size
Reorder level = Average demand during lead time + Reserve stock + Safety stock
Average demand during lead time = Average sales / day x lead time (in days)
Reserve stock = Dispatch std. deviation x lead time x service level (n=1)
Safety stock = Avg. demand during max. delay period x Prob. of delay occurrences (25%)
Order lot size = (Avg. demand/day + 1 std. dev.) x freq. of order in-terms of days
Delay time = Receipt delay + In-house delay
Slide 44

Order Cycle:
An ordering cycle is the time between two successive placement of Orders for
the Inventory.
Order Cycle
Point where
Order is made
Slide 45
Inventory Validation
A171050 CABLE ASSY THROTTLE FC BO CABLE ASSY Normal
part Bangalore South
Average Sales/day - 259
3500
TVSM Inventory -3296

3000
TVSM Revised Maximum Inventory -2543
Dispatch Quantity
2500
2000
1500
1000
500
TVSM Revised Inventory -97

1
8
15
22
29
36
43
50
57
64
71
78
85
92
99
106
113
120
127
134
141
148
155
162
169
176
183
190
197
204
211
218
225
232
239
246
253
260
267
274
281
288
295
302
309
316
323
330
337
344
351
358
365
Days of year
With reduction in inventory by 753 units, only 4 days of under stocked condition exists
Slide 46

Order Cycle:
An ordering cycle is the time between two successive placement of Orders for
the Inventory.
They are determined in 2 ways
1. Continuous review:
In this case the level of inventory is updated continuously as current level is
reached at reorder point ,a new order is placed.
This is also referred to as the Two Bin System or Fixed Order size
systemor Q system.
2. Periodic Review :
Here orders are placed at equal interval of time,but the size of the order may vary
with variations in demand.
This is also referred to as Fixed order Interval System or P" System.
Slide 47

Buffer Stock:
The amount of inventory kept as a safety stock to avoid any stockout due to
situation changes is called Buffer or Safety Stock.
Slide 48

Lead Time:
When an order is placed, it may require some time before the delivery is
reached. The time between the placement of an Order and its receipt is
called lead time or delivery time.
Point where
Order is made
Slide 49

Economic Order Quantity:
The determination of order quantities needs the identification of what lot size
provides the most economical tradeoff between relevant inventory costs
ordering, carrying and shortage costs.
The EOQ is the size of the order that yields the optimum total incremental
inventory cost during the given period of time under the assumption that the
demand rate is constant and known.
Slide 50

Inventory Turn Ratio:
Value of the Stock consumption ( Stocks sold to Customer)
Inventory Turn
ratio of a Store =
Value of the Stock Stored ( Average Inventory)
It is an activity ratio measuring the number of times per period, a stores sells and
replaces its entire batch of inventory again.
In general, a higher value of inventory turnover indicates better performance and
lower value means inefficiency in controlling inventory levels.
Slide 51

Inventory Turn Ratio:
A lower inventory turnover ratio may be an indication of over-stocking which may

pose risk of obsolescence and increased inventory holding costs.
However, a very high value of this ratio may be accompanied by loss of sales due to
inventory shortage.
Inventory turn over is different for different industries. Hence, a comparison has to be
made between similar units.
Slide 52
Truck Turnaround time & Estimation of Docks

Truck Turnaround Time:
This is the average time elapsed between a truck's arrival at a facility and its
departure from the facility.
This is an indicator of the efficiency of lot and dock door space, receiving processes,
and shipping processes.
Truck turnaround time comprises
the loading time at the source,
transit time,
the unloading time at the destination
the time taken for the return trip.
A reduced turnaround time results in more number of trips per truck and hence higher
truck utilization and lower transportation cost.
Slide 53
Truck Turnaround time

Why is it needed to measure the Truck Turnaround Time?
In a growing business atmosphere, it is financially beneficial to keep the inventory of the
store as low as possible to increase the cash flow.
This results in less lot size from supplier at a time.
In other words, the number of trips that a truck has to make increases for a given stock.
Ultimately, the traffic of trucks to deliver the stocks increases inside the industry,
leading to congestion.
Slide 54
Truck Turnaround time

How to control the traffic ?
1.Either increase the Number of Docks
2.Reduce the Truck Turn Around time of the vehicle.
Increasing the Number of Docks is not economical beyond a point, as it leads to higher
operating costs. Hence, it leaves us with no choice other than Working on the
Turnaround time.
So What happens, if you neglect the Truck Turn Around Time?
Slide 55
Truck Turnaround time & Estimation of Docks

The Truck Turn Around time of a Factory and the No .of Docks needed for the
Loading and Unloading are inversely proportional to each other, for the given fixed
amount of Traffic.
Deciding How Many Docks ( Doors for Loading and Unloading) for an Operation
depends on various factors.
1.Truck Loading and Unloading time.
2.No of Pallets or units handled at a time.
3.Types of Materials handled ( Size, property of the material )
4.Of course, Demand rate of the part in the Factory.
Slide 56
Estimation of Docks
The following are the steps involved in the estimation of number of docks for a factory.
The first step is to document the current condition. The Activities to be captured are
1. Date
2. Time at which truck arrived (note if the truck was delayed due to unavailability of dock
door or staging space)
3. Shipment or receipt time
4. Load type (LTL, TL, palletized vs. floor load, parcel)
5. Time when truck loading/unloading began
6. Time when loading/unloading was complete
7. Number of pallets/cases that were handled
8. Time truck left
Slide 57
Estimation of Docks
Along with this the No. of truck per day needs to be recorded.
Hence , the No.of Docks required is equal to
(Peak trucks per day) X (Average dock time per truck)
Available Time X Efficiency
Trucks per Day This represents the Peak or near peak Activity.
Average Dock Time Loading + Unloading + Receipt time(Consider Online alone).
Efficiency 90% ( depending on the variability of truck arrivals.)
Slide 58
Estimation of Docks
However, in daily Industrial practices, the No. of trucks that can be serviced per Dock
is calculated as a measure, as the Incoming No. of trucks will vary as per the
Demand.
No. of Trucks that can be =
serviced per dock per shift
(Available time per shift* Efficiency)

( Avg Dock time per truck+Avg.Waiting time)
Waiting time Time elapsed between the moments at which one truck leaves and the
next truck arrives.
Slide 59
Estimation of Docks
Case Study:
To under stand the overall picture, lets consider a simple case study
An analysis is made for increasing the No. of trucks serviced per dock at TVSM
Plant 2 for Unloading of pallets from Trucks.
The Available Time per Shift is - 466 Mins.
Efficiency Considered 90%
The study is conducted for trucks carrying pallets.
Assumptions:
The Size (type) of the trucks arriving is considered the same, as more than 90% them
are EICHER Trucks only.
The No. of pallets carried by a truck is 8 . Taken as the average for all the trucks.
(The range is from 6 to 9 per truck)
Slide 60
Estimation of Docks
Case Study:
The various activities carried out were recorded.
Activities which could be
done only at the dock
Slno Element Description

1
2
3
4
5
6
7
8
Park truck to position

Put wheel stopper
Hand over document & drvr to scissor lift
Open rear gate
Stacker lift position
Raise scissor lift & put leveller
Remove tied ropes in the truck
Unload parts from truck to scissor lift
Pallet (8 nos)
9 Lower scissor lift
10 Walk to other side of scissor lift
Remove safety chains & bars
11 Move parts from scissor lift to floor (location)
Pallet (8 nos)
12 Check qty - visual
Activities which could be

done without the need of
the dock
Obsered
time
Secs)
72
8
7
15
11
17
21
Normal
time
Secs)
72
21
7
12
11
21
22
In line
Off line
72
21
7
12
11
21
22
Transporter
Transporter
Transporter
Transporter
Transporter
Transporter
Transporter
309
23
5
19
309
23
6
16
309
23
6
16
Transporter
Transporter
Transporter
320
32
320
32
320
Transporter
both
32
Who
Slide 61
Estimation of Docks
Case Study:
13
14
16
17
16
18
19
20
21
22
23
24
25
26
Currently carried out as

Online. Can be done
offline
Improvement Idea to Increase

Serviceability
Move parts to location

Move empty containers near to scissor lift
Pallet (8 nos)
Remove waste cover from pallet
Load to scissor lift
Check qty - visual
Put safety chain & bar
Walk to front
Raise scissor lift
Move empty containers inside the truck
Pallet (8 nos)
Tie ropes as required
Lower scissor lift
Close tail gate
Driver wlk to driver seat
Remove wheel stopper
Start vehicle & move out from dock
**
**
288
160
**
7
21
Total - time (sec)

Total - time (mins)
288
160
288
160
21
8
21
TVSLSL
both
TVSLSL
both
TVSLSL
Transporter
Transporter
Transporter
Transporter
Transporter
Transporter
Transporter
Transporter
Transporter
21
7
21
8
21
260
260
31
13
5
8
4
31
12
5
21
26
260
0
31
12
5
21
26
1649
27
1732
29
1223
20.4
487
8.1
Slide 62
Model Stores Creation

What is a Model Store?
Any type of Stores facility , which provides scope for the most utilization of the
Resources (Man, Machine , Method, Material) through applications of advancement
in the Material Storage and handling Systems and methods.
The considerations for a model store involves the factors already discussed in the
considerations for the creation of Stores.
In addition to it , the other objectives are
1. Ease of Handling
2. Ease of Storage
3. Ease of traceability and inspection
4. Ease of Recording and retrieval.
Slide 63

1. Ease of Handling:
This begins with the inward material storage condition received from the Supplier.
The Incoming mode shall ensure the count free design ( No.of parts per container)
The storage shall have the flexibilty to be stacked and to be Cleaned and to be folded to
ensure return transportation.
The receipt of Material into the store shall be done without the manual intervention
through barcode Scanning& Mobile robots for the handling of Parts.
2. Ease of Storage:
The storage system shall have the flexibility to utilise the vertical space of the storage
area.
And ensure easy retrieval through AS/ RS Systems in a FIFO Sequence.
Without the search and find,Once the Order is created and fed into the system, the
AS/RS unit will pick the SKU and Supply it at the customer end.
Slide 64

Without the search and select, Once the Order is created and fed into the system, the
AS/RS unit will pick the SKU and Supply it at the customer end.
Ease of Traceability and Inspection:
The Storage units shall have provisions to operate with RFID systems to ensure
traceability
Ease of Recording and Retrieval:
The data of the material stored and stock taking shall be automated, which will trigger
autonomous JIT quantity calls to the Supplier end, to ensure losses due to delay of
information.
Similarly , the facilities at the usage areas of the stored parts shall have facilities to
signal the stores when stock is low, to avoid the delays.
The above mentioned are one of the few major Objectives of a Model Store.
With the Improvements happening more and more in Material Handling and Storage
Systems, this will allow for further improvements in Model Stores.
Slide 65
References
1. Operations Research, theory and Applications by J K Sharma, Macmillan
Publications,2001.
2.Website of Gross Associates, for Estimation of Docks.
3.CLASSIFICATION OF INVENTORY IN THE NEW BUSINESS ENVIRONMENT
Amir M. Hormozi, Ph.D., CPIM, College of Business, Texas A&M University.
4. Integrated Dynamic Assignment and Queuing Model for Truck Appointment
System by Xuesong Zhou, University of Utah.
5. Wikipedia,
6. The IEEE International Conference on Industrial Informatics, A Generic Model for
Crossdock Truck Scheduling and Truck-to-Door Assignment Problems.
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Storage Systems

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

1.Nearly 60% to 70% of a companys direct investment is in the form of raw

TVSM / PED / MSE / MHSE

However, an Inventory is a necessary evil that every organization would have to

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

Stores are basically classified on the basis of

2.Size and the Location of Storage

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

Packing material store:

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

2.Unit Stores or Decentralized Stores:

3.Centralized stores with sub-stores:

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

Inventories and types

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

Distribution of Inventories in an Organization:

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

2.Essential (E) - for Essential items without which temporary losses of

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

We will see them in detail later..

TVSM / PED / MSE / MHSE

TVSM / PED / MSE / MHSE

Consideration for creation of Stores

Stock Keeping Unit (SKU):

TVSM / PED / MSE / MHSE

Consideration for creation of Stores

TVSM / PED / MSE / MHSE

Inventory Analysis (Fixed Qty. Order Approach)

Delay time = Receipt delay + In-house delay

TVSM / PED / MSE / MHSE

Consideration for creation of Stores

TVSM / PED / MSE / MHSE

TVSM Inventory -3296

TVSM Revised Maximum Inventory -2543

TVSM Revised Inventory -97

Consideration for creation of Stores

TVSM / PED / MSE / MHSE

Consideration for creation of Stores