Factory warehouse: Interfaces production with wholesalers
small number of large orders daily
advance info about order composition
=> focus on cost and order accuracy
(responsiveness depends heavily on production schedules)
Retail Distribution warehouse: Serves a number of captive retail units
advance info about order composition
carton and item picking from a forward area
more orders per shift than consolidation/shipping lanes
=> focus on cost, accuracy and fill rate
(responsiveness depends heavily on truck routing schedules)
Remark: If the retail units are not captive, then responsiveness becomes a crucial issue!
Catalog Retailer: A warehouse filling orders from catalog sales
a large number of small (frequently single-line) orders
item and, sometimes, carton picking
daily composition of orders usually unknown
only statistical information available
=> focus on cost and response time
Support of Manufacturing operations: A stock room providing raw material and/or work-in-process to manufacturing operations
many small orders
only statistical information available about order composition
stringent time requirements (e.g., response in 30 min)
=> focus on response time but also accuracy and cost
The careful measurement and statistical analysis of the warehouse activity.
The process of understanding the customer orders that drive the system
Sifting through historical data for opportunities and insights that might confer advantage.