8.2 Inventory Storage and Retrieval Systems
4 min read•july 25, 2024
Inventory storage systems are crucial for efficient warehouse management. From to , each method offers unique benefits for different product types and operational needs. Choosing the right system depends on factors like product characteristics, throughput requirements, and space constraints.
Material handling equipment plays a vital role in moving inventory within warehouses. , , and streamline operations, while and picking technologies enhance accuracy and speed. These tools significantly impact operational efficiency by reducing travel time and improving worker ergonomics.
Inventory Storage Systems
Types of inventory systems
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- Block stacking stores pallets directly on floor stacked on top of each other maximizes space utilization but limits accessibility (bulk items, construction materials)
- Rack storage systems provide organized vertical storage with various configurations:
- offers easy access to individual pallets ideal for diverse SKUs
- allows forklifts to enter deep lanes suits high-density storage (perishables)
- uses inclined rails with carts for dense storage with some selectivity
- employs gravity-fed lanes ensuring FIFO rotation (beverages, dairy)
- Automated storage and retrieval systems (AS/RS) use computer-controlled equipment for high-efficiency storage:
- handles large loads like pallets in high-bay warehouses
- manages smaller items in totes or trays ideal for small parts
- utilize vertical space with trays moving up and down
- rotate shelves to bring items to picker:
- rotate laterally saving aisle space (pharmaceuticals)
- rotate vertically maximizing floor space utilization (office supplies)
Suitability of storage systems
- Product characteristics influence system choice:
- Size and weight determine rack strength and lift capacity needs
- Fragility may require specialized handling or cushioned storage
- Shelf life impacts rotation strategies and storage duration
- Temperature requirements necessitate climate-controlled areas (frozen foods)
- Throughput requirements shape system design:
- affects accessibility and replenishment frequency
- Order frequency influences picking system design and automation level
- Peak demand periods may require flexible or scalable storage solutions
- Space utilization considerations:
- Ceiling height determines vertical storage potential and rack configuration
- Aisle width requirements affect storage density and equipment maneuverability
- Accessibility needs guide system selection:
- crucial for perishables and date-sensitive items
- suitable for non-perishables and uniform products
- Cost considerations include:
- Initial investment varies greatly between manual and automated systems
- Operational costs encompass labor, energy, and system maintenance
- Maintenance expenses differ based on system complexity and automation level
Automated Systems and Material Handling
Benefits vs limitations of AS/RS
- Benefits of AS/RS:
- Increased storage density through optimized vertical space utilization
- Improved inventory accuracy with real-time tracking and reduced human error
- Reduced labor costs by automating storage and retrieval tasks
- Enhanced order fulfillment speed through rapid access to stored items
- Improved safety by reducing manual handling and working at heights
- Limitations of AS/RS:
- High initial investment costs may be prohibitive for smaller operations
- Limited flexibility for future changes once system is installed
- Potential for system downtime can halt operations if not properly managed
- Dependency on technology and power supply requires backup systems
- May require specialized maintenance and trained technicians for repairs
Role of material handling equipment
- Forklifts versatile for various tasks:
- Types include counterbalance for general use, reach trucks for narrow aisles, order pickers for high-level picking
- Applications in various rack systems from selective to drive-in racking
- Conveyors efficiently move products:
- transport items horizontally over long distances
- handle pallets and heavy loads with low friction
- Automated guided vehicles (AGVs) navigate autonomously:
- Navigation methods include wire-guided for fixed routes, laser-guided for flexibility, vision-guided for complex environments
- Integration with warehouse management systems for coordinated operations
- Robotic systems perform repetitive tasks:
- Articulated arm robots excel in picking and packing operations
- Mobile robots transport inventory between storage and processing areas
- Picking technologies enhance accuracy and speed:
- guides workers through verbal instructions
- use LED displays to indicate pick locations and quantities
- confirms correct item selection and updates inventory
- Impact on operational efficiency:
- Reduced travel time through optimized routing and equipment selection
- Increased picking accuracy with technology-assisted methods
- Improved ergonomics for workers by reducing physical strain and repetitive motions
Key Terms to Review (24)
Automated guided vehicles (AGVs): Automated Guided Vehicles (AGVs) are mobile robots used to transport materials within a facility without human intervention. These vehicles follow predetermined paths, often using various navigation technologies, and are essential in streamlining processes in warehouses, manufacturing plants, and distribution centers. AGVs enhance operational efficiency by reducing the need for manual labor and minimizing errors associated with material handling.
Automated storage and retrieval systems (AS/RS): Automated storage and retrieval systems (AS/RS) are automated systems designed to store and retrieve goods efficiently within warehouses or distribution centers. These systems use computer-controlled equipment, such as shuttles or stacker cranes, to manage inventory storage and retrieval, improving accuracy and speed while reducing labor costs and human error. AS/RS can significantly enhance the overall efficiency of operations related to order picking, packing, and the organization of warehouse layout.
Belt conveyors: Belt conveyors are a type of mechanical system used to transport materials from one location to another, utilizing a continuous loop of material (the belt) that moves around two or more pulleys. These systems are essential in inventory storage and retrieval, as they facilitate efficient and reliable movement of goods, optimizing warehouse operations and reducing manual handling.
Block stacking: Block stacking is a method of storing goods in a warehouse where items are stacked directly on top of one another in a grid format. This technique maximizes vertical space, making it a cost-effective solution for storage, especially for products that are sturdy enough to withstand the weight above them. Efficient block stacking can improve inventory organization and accessibility while minimizing the need for complex racking systems.
Carousel systems: Carousel systems are automated storage and retrieval systems that organize items in a rotating fashion, allowing for efficient inventory management and quick access to stored goods. These systems can save space and reduce retrieval times by bringing the items directly to the operator, rather than requiring them to walk through an entire warehouse. They are particularly beneficial in environments where space is limited and speed is essential for operational efficiency.
Conveyors: Conveyors are mechanical systems used to transport materials or products from one location to another within a facility. They play a vital role in inventory storage and retrieval systems, allowing for efficient movement of goods, reducing manual handling, and increasing throughput in warehouses and distribution centers.
Drive-in/drive-through racking: Drive-in and drive-through racking are high-density storage systems that allow forklifts to access pallets stored in deep lanes. This type of racking maximizes storage space by enabling pallets to be stored back-to-back in a single lane, minimizing the amount of aisle space needed. Drive-in systems typically require a first-in, last-out (FILO) approach, while drive-through systems allow for a first-in, first-out (FIFO) inventory flow, making them suitable for different inventory management needs.
First-in-first-out (fifo): First-in-first-out (FIFO) is an inventory management method where the oldest stock items are sold or used first before newer items. This approach ensures that products are rotated properly, minimizing the risk of spoilage or obsolescence, particularly important for perishable goods and time-sensitive materials.
Forklifts: Forklifts are powered industrial trucks used to lift and move materials over short distances, commonly found in warehouses and construction sites. They play a crucial role in inventory storage and retrieval systems by enabling efficient handling of heavy loads, facilitating quick access to stored goods, and improving overall warehouse productivity.
Horizontal carousels: Horizontal carousels are automated storage and retrieval systems that consist of rotating shelves or bins arranged in a circular or oval layout, designed to efficiently store and retrieve items in warehouses or distribution centers. These systems improve inventory management by reducing the time needed to locate and access products, thus enhancing overall operational efficiency. Horizontal carousels can be particularly useful in environments where space is limited and rapid retrieval is essential.
Inventory turnover rate: Inventory turnover rate is a financial metric that measures how many times a company's inventory is sold and replaced over a specific period, usually a year. This rate provides insight into the efficiency of inventory management and the effectiveness of sales strategies, indicating how well a company turns its inventory into sales. A high inventory turnover rate suggests strong sales performance and effective stock management, while a low rate may indicate overstocking or weak sales.
Last-in-first-out (lifo): Last-in-first-out (LIFO) is an inventory valuation method where the most recently acquired items are the first to be used or sold. This approach assumes that the latest products added to inventory are the first ones to leave, making it essential for managing inventory costs and assessing profit margins. LIFO is particularly beneficial in environments where inventory costs are rising, as it can lead to tax advantages and more accurate matching of current costs with revenues.
Mini-load as/rs: A mini-load automated storage and retrieval system (AS/RS) is designed for the efficient storage and retrieval of small items in warehouses or distribution centers. This system uses automated cranes or shuttles to move inventory within a high-density storage environment, optimizing space and improving picking accuracy while reducing labor costs. It is particularly useful for industries that handle high volumes of small parts or products.
Pallet flow racking: Pallet flow racking is a dynamic storage system that utilizes gravity to allow pallets to flow from the loading end to the picking end of the rack. This system is designed to optimize space and increase efficiency in inventory storage and retrieval by enabling first-in, first-out (FIFO) inventory management. The design often includes inclined rollers or tracks that facilitate the movement of pallets, ensuring that older stock is accessed before newer stock.
Pick-to-light systems: Pick-to-light systems are automated order picking solutions that use lights and displays to guide warehouse workers to the correct items in a picking area. These systems streamline the order fulfillment process by reducing errors and increasing speed, making them a key component in efficient inventory management and retrieval. By highlighting specific locations for item retrieval, pick-to-light systems enhance overall accuracy and productivity in order picking and packing processes.
Push-back racking: Push-back racking is a type of storage system designed for high-density pallet storage that allows pallets to be stored and retrieved efficiently. This system utilizes a series of inclined tracks and carts, where pallets are pushed back into the racking system as new pallets are loaded from the front. It offers great space utilization and facilitates a first-in, first-out (FIFO) inventory management approach.
Radio frequency (rf) scanning: Radio frequency (RF) scanning is a technology used to track and manage inventory by utilizing electromagnetic waves to identify and locate items. This method enhances the efficiency of inventory storage and retrieval systems by enabling real-time visibility of products, streamlining operations, and reducing errors in inventory management. It plays a crucial role in automating processes, improving accuracy, and optimizing space utilization in storage facilities.
Robotic systems: Robotic systems refer to automated machines designed to perform tasks with precision and efficiency, often mimicking human actions or undertaking complex processes. These systems are increasingly utilized in various industries to enhance productivity, improve accuracy, and reduce labor costs, particularly in inventory storage and retrieval operations. Their integration into logistics can significantly streamline processes by optimizing the movement and handling of goods.
Roller conveyors: Roller conveyors are a type of material handling system that consists of a series of rollers mounted on a frame, allowing items to be moved from one point to another. They are widely used in warehouses and distribution centers for efficient inventory storage and retrieval, as they enable easy movement of goods without manual lifting. The design can vary from gravity-fed systems to powered conveyors, making them versatile for different operational needs.
Selective pallet racking: Selective pallet racking is a storage system designed to maximize the use of vertical space while allowing easy access to individual pallets. This type of racking is particularly beneficial in warehouses and distribution centers, enabling efficient inventory management and retrieval. The system's design supports various pallet sizes and weights, making it versatile for different storage needs.
Unit-load as/rs: Unit-load as/rs refers to a storage and retrieval system designed to handle large quantities of materials or products as a single unit. This system optimizes space, reduces handling time, and enhances overall efficiency in inventory management, making it essential for effective inventory storage and retrieval.
Vertical carousels: Vertical carousels are automated storage and retrieval systems that rotate items in a vertical manner, using a series of shelves mounted on an overhead track. This system helps optimize space utilization in warehouses and distribution centers by using the vertical height for storage while allowing easy access to items as they rotate to the user. Vertical carousels are particularly effective in environments where quick retrieval and inventory accuracy are crucial.
Vertical Lift Modules (VLM): Vertical Lift Modules (VLM) are automated storage and retrieval systems that use a series of trays or shelves arranged vertically to maximize storage density and efficiency. They operate on a goods-to-person principle, where items are automatically retrieved and delivered to an operator at an ergonomic height, significantly reducing the time and effort required for inventory handling.
Voice-directed picking: Voice-directed picking is a technology that enables warehouse workers to receive verbal instructions through a headset, allowing them to pick items from storage locations using their hands freely. This method enhances efficiency and accuracy in order fulfillment processes by reducing errors and streamlining communication. By utilizing voice commands, workers can quickly navigate inventory storage areas, improving the overall effectiveness of both picking and packing strategies.