SOME POINTS of the  WAREHOUSE THEORY

   Oleg B. Malikov, Ph.Dr., professor,  St.Petersburg State Transport  University

 

Abstract

Warehouses are main components of logistic chains. Supply chain may be represented as consisted of  warehouses,  connected  with  transport links. Modern mechanized and automatic warehouses are very complicated technical objects, which feature with many parameters, a lot of technical decisions and operate under stochastic influence of flows of arriving and dispatching cargoes. So they run in permanent changing conditions of different cargo volumes, number of handling equipment and employees used. Special theory is needed for the due research and project these complex technical objects.

 

Keywords:  Warehouse, Transport,  System,  Material flow, Logistics,

                       Supply Chain

  

 Introduction

Warehouses and cargo terminals are wide spread objects in all industries, trade and transport. Modern mechanized and automatic warehouses are very complicated technical objects. They rigged with specific complex equipment (racking systems of various performance up to 20 meters high, industrial trucks and stacker cranes with automatic control, automatic conveyor systems and automatic guided vehicles - AGV, means of robotics, palletizers, computers and on-line electronic data exchange systems etc. They are characterized with hundreds of various parameters and display stochastic sort of activity under fluctuating action of material flows. In every case of reconstruction or building some new warehouse a lot of options, with different parameters and economical characteristics have to be calculated.

     It is impossible for engineers to consider all dozens of  options of possible project solutions.  Many profound researches should be carried out to find the best solutions in many aspects.

    Taking all these into account it is necessary to develop some special theory of warehouses and cargo terminals research and projecting.

 

Warehouse Theory

      Hundreds of warehouse projects were worked out by the author for about 20 industries that made to understand the necessity of  new special theory for warehouses and cargo terminals [1-3]. The General Cybernetic Theory of Systems (GCTS) was applied as a foundation  for this theory that was called of Warehouses System Theory  (WST). According to this theory warehouse should be analyzed as a system, i.e. as a complex of connected components, having been created for reaching unified objective. For creating efficient warehouse thorough research should be fulfilled with the following steps: objective of the system, its components, its structure, activity, interaction with environment and results of operation. Simulation may be used at all these steps.

Objective of the warehouse system

   This is  the  basic aspect  of  the warehouse  creation and functioning.

Common, or at any rate very wide spread opinion is that warehouses are created for storage  of merchandise. No products however are manufactured just for storage. They should move to customer to be  consumed.

     Supply Chain consists of 2 kind of elements: warehouses and transport links, connecting these warehouses (Figure 1a). Any well organized transportation process starts and terminates at some warehouses (W, W in Figure 1b). A warehouse always interacts with two type of transport – first Ti, that delivers cargoes to the warehouse and second To, that delivers cargoes from warehouse to customers (Figure 1c). 

                                  

Figure 1. Logistic chain with main components - warehouses W , Wat facilities F  and F and connecting them transport links Ti

 

    Each of this material flows is characterized  not only with whole capacity, but also with the following parameters: volumes of transport batches; number of different items of cargoes in transport batches; type and features of transport tare and packing of cargoes; type and features of freight transport units; time of arrival and dispatching of transport batches, regularity and conformity of these processes to some rules;  time intervals between arrival and dispatch of transport batches and their regularity.

     Comparison of these characteristics of in-bound and out-bound goods flows displays, that they may be different from each other. So multitude  A of in-bound flow parameters can be not equal to the appropriate elements of multitude B of out-bound flow parameters (Figure 1,c).  Warehouse transforms some of the flow parameters, mentioned before [4].

   For example, Logistic Center can change: volume of the transport batches from big to the small ones, change pallets, transport tare and packing of goods,  number of items in batches, time characteristics of transport batches dispatched etc.

       So warehouses of various types and designations are created in the points of interaction of different transport and industrial systems with an objective of material flow transformation for the best consequent transportation and/or using goods.    Besides the warehouse can be efficient if it for due flow transformation would  spend as little as possible 6 main resources, which we have in our real natural environment: space, time, materials, energy, labor, money.  WST  provides special means and methods for this.

 Components of the warehouse system

    According to WST the most productive approach for warehouse research was proved to select as the system components: areas of cargo loading, unloading, reception, storage, picking,  inner warehouse transport etc.     

     Everyone of these components of a warehouse system has its own technology, equipment and purpose of functioning. But there is one general system objective, which all the components operate for. This is the united objective of creation of the warehouse – to transform the determined material flow in a specific way with the least spending of mentioned above 6 resources. That is known as synergetic effect in the General Theory of Systems.

 Structure of  the warehouse system

    Structure of the warehouse system represents the various interactions between elements of the system: in space, time. warehouse technology, depending, economical interaction, in organization, management and so on. It is these interactions of the warehouse system components between one to another, that lend to the system entirety, regularity and organization. Structure of the warehouse system should be selected or created in such a way that it would allow in the most degree to reach warehouse system its objective.

Functioning of the warehouse system

     In every moment the warehouse system is in some state, that feature specific parameters.   These parameters may be such as  level of inventory, amount of machines at work, occupation of areas with cargo, number of trucks at loading-unloading docks, number employees at work and so on.   During its operation the warehouse system  interacts with environment, which consists of a number of outside systems, and fluctuates from one state to another one. This functioning of warehouse system should be projected so as it helped the warehouse system to reach its main objective of material flow transformation.

     The number of these states may be very large, and they are characterized with types and amount of technological operations to be carried out at the moment. Main four warehouse states may be: only cargo reception; only cargo dispatching; simultaneously cargo reception and dispatching; no work at warehouse at all.

Ability of the warehouse system to be in some state W can be valued with its appropriate probability  P(W) – see Figure 2. 

                          

Figure 2. Graph of states and transitions of a warehouse system (4 states and

               8 transitions  illustratively) and their appropriate probabilities                         

 

       Functioning of warehouse system can be represented in formulized view as a matrix of transition probabilities:

                                        P   P … P … P

                                        P  P … P … P

                         P =       ………………………

                                        P   P … P … P

                                        ………………………

                                        P   P … P … P

 

       Probabilities disposed in the main diagonal of the matrix can be used for calculation of possibilities of remaining of the warehouse system in the same states.

       This method of formalization of warehouse system functioning can be used for its research and optimization, for example, for computation quantity of handling equipment:

                                                   ,

where    r  - number of handling equipment; n  - number of warehouse possible states; P(Wi ) – the probability of the i-th state of the warehouse system.

Interaction of the warehouse with environment

    While operating the warehouse system interacts with environment, which consists of a number of outside systems. This interaction with surrounding systems should be planned so as it allowed the warehouse system to reach its main objective of material flow transformation.

       Practically this interaction the warehouse system with the environmental systems represents mutual transferring material and informational flows, which makes the warehouse to pass under this influence from one its state to another. 

Results of the warehouse operation

      Results of the warehouse system operation should be analyzed and compared with the objective having been set at the beginning of its projecting. If the results do not coincide with the objective, it is necessary to change some decisions.

Conclusion

Warehouse should be considered as a system with specific objective, components, structure, functioning, interaction with environment systems.   This general methodology can be used  also for analyzing  other objects in different fields (railway stations, marine ports, parkings, garages, sport and cultural objects, shops and markets etc.).   These objects do not produce some new products, but only transform  flow parameters and  are very useful for the human society.

 References

1.     O.Malikov, Warehouses & Cargo Terminals. St. Petersburg, 2005, p. 650

2.     O.Malikov, Business Logistics, St. Petersburg, 2003, p. 240.

3.     O.Malikov. Warehouses of Flexible Manufacturing Systems. St.Petersburg, Russia, 1986,   p. 186

4.     O.Malikov. Projecting of Automatic Warehouses . St.Petersburg, 1980, p.240

 

Contacts:

190031, Russia, Saint Petersburg, Moskovskey ave., Petersburg State Transport University. Department Logistics&Commerce. Ph.Dr, professor Oleg B. Malikov

E-mail:    stadnitskey@mail.ru               mob. tel.  8-921-308-8098