your automation investment.
There are several pieces that come
into play when analyzing your current
processes. Perhaps the most import-
ant statistical information concerns
throughput, or how many units per
hour enter and exit the facility. In
conventional systems, throughput
determines the staffing levels and
the number of fork trucks required.
However, with automated systems,
throughput determines the quantity of
storage/ retrieval machines (S/RMs)
required. One S/RM is usually capable
of handling one unit load at a time,
but can manage between 60 to 70 unit
loads per hour. However, tandem
S/RMs are becoming more common,
carrying two pallet loads at a time.
Other questions to answer include:
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How many hours/shifts is your
operation active?
Do you have picking operations? If
so, how are they accomplished?
How many forklift drivers do you
have per shift for pallet move-
ments?
Are you currently using a ware-
house management system
(WMS)?
Gaining a better understanding of the
SKUs you have in your warehouse is
key in determining the best configu-
ration for your AS/RS. The number
20
The Satellite Review
of SKU’s will define how selective the
inventory will have to be, thus enabling
the potential use of multiple deep
systems, which reduces the building
footprint. Some questions to consider
are: mated systems storing finished goods
tend to have over 500 pallet positions
of storage. If your warehouse fits this
description, consider the following:
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Of how many items (SKUs) does
the inventory comprise? This
should include all variations of
product size, container type, etc.
How many SKUs represent ap-
proximately 80 percent of the an-
nual sales volume and 80 percent
of the inventory? (Pareto analysis)
More often than not, 80 percent of a
company’s volume is based around
20 percent of its SKUs. Thus, if you
have 5,000 SKUs, about 1,000 of them
account for 80 percent of your vol-
ume, while the remaining 4,000 SKUs
account for 20 percent. An AS/RS
will allow you to better manage these
“slow-moving” SKUs and target your
“top 1,000” to more effectively opti-
mize space.
Remember, there is no such thing as
having too many SKUs and you do
not have to have a certain number to
introduce an AS/RS. This is a common
misconception among those consider-
ing automation.
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What is your annual volume in
pallets?
What type of pallets are you using
(GMA, CHEP, etc.), and what are
their dimensions and maximum
weights?
What is your SKU per pallet ratio?
Do your pallets have slip sheets?
Does the product overhang the
pallets, and if so, what is the
maximum length and width of the
overhang?
Although these are small details, this
information is still important in your
evaluation. Once you’ve done a thor-
ough investigation of your warehouse
methods and answered the above
questions, you will have a good feel for
where improvements can be made that
will save time, money and streamline
your entire method.
Evaluating Current Facility
The capacity of the system will define
the cube of the warehouse. Most auto- You’ll need to observe the size, dimen-
sions, layout, capacity and location of
your current facility when planning
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