Ministry of Education and Training Hoa Sen University Faculty of LGTMQT FINAL ESSAY SUBJECT: WAREHOUSE & IM (FIATA)
Last name and name: Vu Thanh An MSSV: 2198668 Class: 0100 Semester: 2131 Contents
What is warehouse management?...........................................................................................3
Warehouse Management Benefits...........................................................................................3
What is a warehouse management system?..........................................................................................3
Warehouse management principles.........................................................................................4
5 necessary warehouse management processes......................................................................................5
Inventory tracking...................................................................................................................5
Select and pack...........................................................................................................................5
Pick up and queue.......................................................................................................................5
Ship..........................................................................................................................................6
Report.......................................................................................................................................6
Warehouse management example...........................................................................................6
What is the EOQ model?..........................................................................................................7
Formula for calculating the number of economic orders (EOQ).........................................7
How to calculate the number of economic orders (EOQ).....................................................7
Advantages of EOQ model.......................................................................................................8
Disadvantages of Using Economic Order Quantity (EOQ)..................................................8
How do emerging IoT (Internet of Things) affect warehouse management ?....................9
What is the Internet of Things?...............................................................................................9
How is the Internet of Things affecting warehouse management?.........................................9
About "smart" warehouse management..............................................................................9
Warehouse management solutions......................................................................................9
Smart inventory management.............................................................................................9
Reduce labor costs..............................................................................................................9
Optimal use of space in the warehouse.............................................................................10
Maintenance of goods in a facility....................................................................................10
Visibility and transparency in the supply chain industry..................................................10
Inventory management optimization................................................................................10
Automation.......................................................................................................................10
Example of IoT (Internet of Things).....................................................................................11
Home page automation and ordering....................................................................................11
Implementation centers, advanced technology and human/machine symuosis....................12
A smart warehouse management model...............................................................................13
What is AS/RS ?....................................................................................................................13
How automatic storage and retrieval systems work.............................................................13 1
Advantages of automatic storage and retrieval systems.......................................................13
Cons of automatic storage and retrieval systems..................................................................14
EXAMPLE of AS/RS..............................................................................................................15 2
What is warehouse management?
Warehouse management refers to the supervision of operations in a warehouse. This
includes receiving, tracking and storing inventory, as well as training staff, managing
shipping, planning workloads, and tracking the movement of goods.
Warehouse Management Benefits
Warehousing operations are generally invisible to customers, but they play an
important role behind the scenes in ensuring on-time delivery. To achieve this goal,
good warehouse management ensures all warehouse processes run as efficiently and
accurately as possible. The benefits of good warehouse management — namely, fast,
high-quality service at low cost — can spread to the entire supply chain, strengthening
relationships with suppliers as well as customers.
What is a warehouse management system?
A warehouse management system (WMS) is software designed to optimize processes
operating in warehouses. By implementing WMS, you have the ability to fully display
real-time inventory and storage levels, employee productivity, demand forecasts, and
inventory fulfillment processes. Warehouse management systems are important because
they eliminate manual processes and conjectures, instead streamline processes, save
time, and provide more accurate snapshots of what's going on inside the facility
without conducting constant warehouse inspections. Each warehouse management
system may have different functions deployed depending on the area of business it serves. 3
Warehouse management principles
Know your purpose. A warehouse business must first know its goals.
Total control. Warehouse management involves coordinating complex processes
involving multiple moving parts: people, equipment, orders, and inventory. Warehouse
managers need to be able to monitor each process to ensure the process works
smoothly and solve problems that inevitably occur. Quality control is critical to
ensuring orders are executed correctly.
Flexibility and resilience. Warehouse managers must be able to change plans
immediately, whether it's due to damaged incoming materials or extreme weather
delaying shipments. whether that involves rearranging warehouse space or re-
envisioning the selection processes.
Key customers. On-time delivery, with the right product, is one of the most important
metrics when it comes to service and customer satisfaction.
Decision-making is based on data. Even if every process in the warehouse seems to
be running without a hitt, that doesn't mean the processes are working as efficiently as
possible. WMS can help you identify and analyze areas for improvement. 4
5 necessary warehouse management processes
Warehouse management is an aspect of supply chain management. It affects the
fulfillment of retail orders, storage, inventory management, shipping and distribution. Inventory tracking
Inventory tracking is inventory level tracking so you know you have any SKU in stock
and the exact location where you store them or whether they're being shipped from the
manufacturer or on the way to the store.
Ad space management lets you know how many products are ready to be shipped if a
customer orders an item right now, as well as when you should place more orders based on the expected volume.
As you grow, you'll likely move inventory faster, expand to new locations, and
increase your product lines. This makes the accuracy of the inventory and tracking it all the more important. Select and pack
Retrieving and packing are two core functions performed in the warehouse. A
warehouse management system should create a pick-up list for each picker to pick up
the goods in the most efficient way. This may include selecting the region, selecting
the wave, or selecting the series.
For each new order, the picker will receive a packing slip for the ordered items and the
location stored at the warehouse. Selecters will collect the ordered products from their respective locations.
Once the order is selected, it will be delivered to a packer, who is responsible for
safely placing items in a box or multiple parcels, adding any necessary packaging
material and putting shipping labels on it. Pick up and queue
Any warehousing business must be able to pick up inventory or transport goods from
trucks at the loading terminal and then put them in storage locations. The warehouse
management system needs to be able to scan in each box to receive the amount of inventory it has.
It will then be taken to a short- or long-term inventory storage location, where it will
be scanned again. Warehouse management software needs to provide clear instructions
for each user so that they know how to receive, open packages, pick, select, pack, and ship inventory. 5 Ship
Based on the delivery options and shipping services you offer to customers, carriers
such as DHL, USPS, FedEx, and UPS will take orders from warehouses to ship
packages to their next destination.
Once the order is shipped, your warehouse management system will be able to
automatically send e-commerce order tracking information back to your store so your
customers can track their shipments. Report
Warehouse management systems should provide inventory and operations reports
across the entire warehouse. This can include accuracy in order fulfillment (total
number of wrong picks, wrong packages, etc.), total orders made by the hour to
measure employee efficiency, Orders are delivered on time and beyond.
There are also reports related to people's activities including inventory forecasts to
understand labor and personnel management needs. With a warehouse management
tracking system, you can quickly find out which employees have completed safety
training and who have the licenses and certificates to operate certain equipment and
other regulatory requirements that you must meet to operate a safe warehouse.
Warehouse management example
It can be said that Amazon's warehouse system has many highlights and special
from the scale to the arrangement and operation.
 This is the largest warehouse system in the world. A total of 175 modern
warehouses are scattered throughout the country, and the United States accounts for 64.
 Each Amazon warehouse spans more than 28 football fields, with 11 people re-entering.
 These warehouses also have the ability to connect closely from
manufacturer, distributor to customer.
 In particular, Amazon's warehouse is fully tinted. Accordingly, all stages are
the simplest such as taking the goods down from the price or the order of
packing, waiting, unloading on the car,... All are highly focused and closely
monitored through this intelligent system.
 In addition, at this warehouse there are many other interesting things such as:
Goods are not in any order, the management process is extremely simple; All
goods are taken down by AI robots,... 6 What is the EOQ model?
The number of economic orders in English is called economic order quantity.
Economic order quantity (EOQ) is the ideal order number that a company should buy
for its inventory at a production cost, a certain proportion of demand, and other
variables. The EOQ model aims to ensure the right amount of inventory is ordered in
batches so that a company does not have to fulfill orders too often and without excess
inventory. It assumes that there is a balance between inventory retention costs and
inventory setup costs, and that total inventory costs are minimized when both setup
and retention costs are minimized.
Formula for calculating the number of economic orders (EOQ) Q= In it:
D = The amount of demand for materials for the year Q = Order volume per time S = One-time order limb
H = Cost of material reserves for the year
How to calculate the number of economic orders (EOQ)
To calculate the EOQ for ad space, you must know the setup cost, demand ratio, and holding cost.
Setup costs refer to all the costs associated with actually ordering inventory, such as
packaging, delivery, shipping, and processing costs. The demand ratio is the number
of inventory that a company sells each year.
Holding costs refer to all costs associated with holding additional inventory. Those
costs include warehousing and logistics costs, insurance costs, material handling
costs, inventory write-offs, and depreciation.
Ordering large amounts of inventory increases a company's holding costs while
ordering smaller amounts of inventory more often will increase the company's setup
costs. The EOQ model seeks to minimize both types of costs. 7 Advantages of EOQ model
This is a simple model, easy to apply widely in every workshop. In addition, thanks to
this model, businesses can strictly control the types of costs such as orders or
warehousing goods. Thereby improving the efficiency of inventory management in the enterprise
Disadvantages of Using Economic Order Quantity (EOQ)
The basis for the EOQ formula assumes that consumer demand is constant. The
calculation also assumes that both the cost of ordering and holding costs are
constant. These assumptions make the calculation of unpredictable business events,
such as changing consumer demand, seasonally changing inventory costs, lost sales
revenue due to inventory shortages, or purchase discounts that a company can receive
when purchasing inventory in larger quantities. 8
How do emerging IoT (Internet of Things) affect warehouse management ?
What is the Internet of Things?
IoT is a system of devices connected to the internet embedded with sensors, software
and other technologies. It is capable of transmitting data over a network without
human manipulation, or even human-computer interactions.
How is the Internet of Things affecting warehouse management?
About "smart" warehouse management
IoT devices can help minimize errors, manual labor, speed up processing and overall
warehouse efficiency. IoT sensors are being used to monitor and track the movement
of materials and other assets in their facilities. The use of these sensors in store shelves
is important for tracking and transmitting inventory data in real time. The Internet of
Things supports warehouse management to reduce costly and time-consuming errors,
ensuring inventory levels and device locations are known and tracked. Warehouse management solutions
IoT devices help manage warehouses with location, packaging, shipping and delivery
data in real time. What's the best thing about this? You will not lose track of assets as
they are constantly updated and this can also be applied to human assets, knowing the
personnel position in real time. Smart inventory management
With Internet of Things devices, devices for a smarter warehouse are made possible,
use racking sensors that allow people to find and manage inventory, and can even take
preventive actions in case of an emergency in the form of notifications when an item
has run out. Stock. IoT warehouse management equipment manages asset warehouses
for transportation or return of goods. Reduce labor costs
IoT enables the development of automation for warehouse management, allowing
vehicles to be guided automatically or even by material handling robots. Manual
intervention is no longer necessary, only in specific tasks, and this is actually
revolutionizing operations in warehouses. 9
How is IoT revolutionizing warehouses? The use of robots and automated forklifts is
also being deployed and they can be remotely commanded to transport assets from one location to another.
What's the impact of this? Productivity is higher, less costly, more efficient, and goals
are being met within a specific date range ahead of schedule.
Optimal use of space in the warehouse
The Internet of Things helps warehouse managers leverage space in facilities to
efficiently distribute and organize goods. With warehouse management systems and
IoT devices, it will help calculate the free space in the facility based on the import and export of goods.
Maintenance of goods in a facility
Environmental factors are essential to maintaining the quality of food. Cold storage
improves the life and freshness of certain products. With IoT, temperature sensors can
go into cold storage so they can monitor the temperature at all times.
Visibility and transparency in the supply chain industry
The full support system for warehouses can help them obtain comprehensive
information about the supply and demand of the market. With the Internet of Things
and its advanced analytics and understanding, it's possible to visualize activities aimed
at improving the logistics cycle based on marketconditions.
Inventory management optimization
The entire data analysis in the warehouse can help develop strategic plans with IoT
warehouse solutions. All actions, all data, can be tracked, and even forecast what is
needed to schedule and inventory. What's this going to do? Optimize the warehouse space. Automation
IoT can track shipping and track services. This means that a warehouse company does
not need an inventory manager or other professionals, avoiding hours of manual
monitoring and reporting to the authorities. With the Internet of Things monitoring all
products and results will be immediately recorded in large data units or warehouses. 10
Example of IoT (Internet of Things)
Amazon accounts for more than half of every new dollar spent online in the U.S.
today, and is the world's leading cloud service provider. Its logistics, computer and
other services often support other companies as well as support its own
expansion. With the breadth and depth of operations, Amazon could become a new
kind of utility; an infrastructure of commerce, from computing and billing capabilities to logistics.
Given its scale, spending power, and ability to capture computing technology, it's no
surprise that the company is using innovation and leadership to improve the customer
experience, from ordering to receiving goods — or that the company is using ioT
extensively to ensure that the entire end-to-end experience is smooth and seamless,
Even if new technologies are being perfected.
Home page automation and ordering
While it's still possible to order from a PC, tablet or smartphone and will remain so,
newer routes are taking Amazon into a smart home environment. They make the
company a more intimate part of everyday life, without having to leave other activities
and go to computer terminals or even smartphones. Amazon is also launching an even
more automated smart home service: the Dash Supplement Service (DRS). It's a
Cloud-based platform that allows connected IoT devices to automatically rearrange
their own supplies as they run out. The company is currently working with Bosch,
Siemens, Grundig, Samsung and Whirlpool as partners for the platform. 11
Implementation centers, advanced technology and human/machine symuosis
At the center of the finished operation, robots rearrange store shelves or bring them to
workers to pick up goods to pack or replenish them. The robot is controlled by a
central computer and navigated using markers on the ground. The process uses space
more efficiently and faster than letting workers walk around.
The rest of the warehouse is also highly automated. At Goods In, the visual system
recognizes the products as they are opened. For Exported Goods, workers pack
products for transportation with help from Amazon's central computer system. Items
taken from storage shelves are automatically identified and sorted into batches intended for a customer.
The computer system knows the size of each product and will automatically allocate
the right box, and even the right amount of packing tape. Moreover, before the product
is sent to different trucks for transportation, the boxes are weighed to ensure there are
no errors in the packaging process.
Robots are becoming cheaper, safer and learning faster thanks to better processors,
algorithms, actuators and sensors. However, they do not have the ability to apply or
improvise well, so it is necessary to collaborate effectively with humans in a
constantly effective relationship. 12
A smart warehouse management model What is AS/RS ?
Automated storage and retrieval systems (AS/RS) are computer-aided systems and
robots that can retrieve items or store them in specific locations. The system usually
consists of pre-defined locations where machines can follow established routes to retrieve items.
As long as everything is stored in its proper location, these systems will help
accelerate production and transportation tasks. Typically, automated storage and
retrieval systems used when high-volume loads must be moved quickly and accurately.
How automatic storage and retrieval systems work
Each type of AS/RS works in slightly different ways, all with the goal of speeding up
warehouse processes. Each of the above-mentioned systems automates the process of
storing products in appropriate containers, shelves, or other storage locations or
retrieving items or loads from storage areas. They reduce the time and manpower
needed to retrieve and store items.
Advantages of automatic storage and retrieval systems
Automatic storage and retrieval systems offer a number of advantages, including:  Reduce labor costs
 Improve accuracy, efficiency and productivity
 Reduce safety risks for employees (reduce the need to lift and move heavy or bulky items)
AS/RS can operate in environments that are not ideal for humans, such as
freezer storage areas. They can also operate at heights that humans can hardly
navigate, allowing warehouse operators to maximize floor space by taking
advantage of vertical space better. 13
Cons of automatic storage and retrieval systems
Despite their advantages, there are some drawbacks to AS/RS solutions. The
equipment is often large and bulky, requiring a significant upfront investment and
significant changes to the infrastructure and warehouse layout.
It is necessary to maintain the equipment regularly to keep the AS/RS system
operating at the highest performance. When the problem occurs, productivity is
significantly affected, sometimes crushing operations have to stop. Finally, warehouses
that process different products at different times, such as seasonal items, may suffer
from reduced productivity during this transition while retraining AS/RS to fetch or move new products. 14 EXAMPLE of AS/RS
Today, Amazon's automated warehouses estimate there are 200,000 mobile robots that
help people move goods through its network, helping them fulfill their promises of
faster delivery to customers. They used experienced warehouse automation companies
to create efficientsystems. Each of Amazon's automated warehouses can track the
location of items in their warehouses, move things around its facilities, and facilitate
the selection and packaging of goods, Here are a few ways that Amazon is using
automation to facilitate lightning-fast execution:
 Amazon uses software to guide and monitor employees to increase personal performance
 High-tech robotic mobile shelves move on wheels to stationary baby pickers
eliminating the need for pickers to go back and forth between shelves.
 Tracking the location and movement of items in the warehouse allows the
picker to be automatically sent out without having to figure out its location.
 Robotic arms called palletizers take items from the conveyor belt and stack
them on pallets for transportation or stacking.
 Robo-stows are used in various fulfillment centers to raise inventory pallets to
required levels or place them on drive units that provide them to specific destinations.
 Units ship packages around Amazon's warehouse facilities
 Recently, it was speculated that Amazon has purchased robots that can pack and wrap packages for shipping. 15 16