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Eversity, University of Arkansas System *

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430

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Industrial Engineering

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Dec 6, 2023

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docx

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4

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Menlo & Ryder, Lean Thinkers Background of Just-In-Time (JIT) and Lean Warehousing: The foundations of JIT and Lean warehousing can be traced all the way back to the Lean manufacturing concepts that originated from the Toyota Production System (TPS) in Japan. JIT represents a manufacturing and inventory management way that seeks to minimize waste and broaden efficiency by producing and delivering products exactly when needed to meet customer needs and demand, thereby reducing surplus inventory. Lean warehousing is an extension of these principles applied to the storage and distribution of goods within a warehouse or distribution center. It is involved with the optimization of warehouse operations, waste reduction, and the enhancement of overall logistics and supply chain efficiency. (Baluch, 2023) Key principles to Lean warehousing: Elimination of Waste: Lean warehousing sets to minimize waste, such as surplus inventory, overproduction, unnecessary inventory, and using space we don’t have. Continuous Improvement: A culture of continuous improvement is needed, where employees are encouraged to participate and resolve issues and definitely point out bottlenecks within warehouse operations. Pull System: Similar to JIT manufacturing, Lean warehousing frequently operates on a pull system, replenishing items based on customer demand instead of pushing products into the warehouse without considering demand. Standardization: Standardized work procedures and processes are of paramount importance in Lean warehousing to ensure consistency and efficiency. (O'Brien, 2021) Lean Warehousing, what did Menlo Achieve? Menlo, a company specializing in logistics and supply chain management, adopted Lean warehousing principles to optimize its operations. Menlo's noteworthy actions included: Customer Collaboration: Menlo closely \worked with its customers to make sure all warehouses were in sync and distribution processes with what was actually needed, guaranteeing that products were stored and shipped only when required.
Streamlined Processes: The company placed a significant focus on streamlining warehousing processes, encompassing order picking, packing, and shipping, to reduce lead times and eradicate waste. Excess Inventory Reduction: Menlo successfully reduced surplus inventory and utilized storage space more efficiently by implementing just-in-time inventory management practices. Continuous Improvement: A culture of continuous improvement was cultivated at Menlo, motivating employees to identify and rectify inefficiencies within warehouse operations. (Lamb, 2023) What Was Accomplished by Ryder? Ryder, a transportation and logistics company, also used Lean warehousing practices to enhance its warehouse operations. Implementation of Pull Systems: Ryder introduced pull systems within its warehouses, this helped make sure that inventory was replenished in exactly what the customer actually demanded, this would lower the risk of overstocking. Cross-Docking: Ryder employed cross-docking as a strategy to minimize the time products spent in storage and expedite the movement of goods from receiving to shipping, bypassing warehousing. Inventory Reduction: Similar to Menlo, Ryder concentrated on diminishing excess inventory, which not only freed up warehouse space but also reduced carrying costs. Technology Advancement: Ryder integrated warehouse management systems (WMS) and other technological solutions to optimize order processing, inventory tracking, and overall warehouse efficiency. (cooper, 2023) What Makes Menlo and Ryder different?
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