Purchasing

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WAREHOUSE ACTIVITY PROFILING: MINING FOR GOLD CHAPTER 2 Warehouse activity profiling • Warehouse activity profiling is the systematic analysis of item and order activity. • The activity profiling process is designed to quickly identify root causes of material and information flow problems, to pinpoint major opportunities for process improvements, and to provide an objective basis for project-team decision making. PROFILING MOTIVATIONS AND MINEFIELDS • Profiling Pays ▫ Done properly, profiling quickly reveals warehouse design and planning opportunities that might not naturally be in front of you. • You can drown in a shallow lake — on average ▫ If we are not careful to plan and design based on distributions as opposed to…show more content…
Lines and Cube per Order Distribution • The lines and cube per order distribution (see Figure 2-9) brings together in one profile the critical information needed to define order picking strategy. • It is a joint distribution that classifies all orders into lines per and cube per families. • It illustrates the typical daily picking activity. Purchase Order Profiling • The purchase order profile includes the same distributions (order mix distributions, lines per order distribution, and lines per order distribution) as the customer order profile. • The only difference is that the purchase order is inbound to your warehouse, and the customer order is outbound from your warehouse. • The purchase order profile is used to make the same batching and processing strategy decisions as was the customer order profile, except the batching and processing strategies are for receiving and putaway as opposed to order picking. • Keep in mind that your purchase order is your supplier’s customer order. ITEM ACTIVITY PROFILING • The item activity profile is used primarily to slot the warehouse, to decide for each item (1) what storage mode the item should be assigned to, (2) how much space the item should be allocated in the storage mode, and (3) where in the storage mode the item should be located. ITEM ACTIVITY PROFILING (cont…) • The item
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