1. 2012). Ganeshan and Harrison (1995) determine a supply



recent years scholars have given meaningful reflexion to the integration of
transportation and inventory decisions. The target is find how to keep balanced
inventory and low transportations costs. World economy and
technology are at the stage of rapid development, which increases the
requirements as to the possibilities and demands. On the global market, the
demand for a variety of products and a short reaction time has increased which
resulted in enormous pressure to establish smooth and effective logistic
solutions. Important non-value added activities are warehousing and material
handling. Holding a product on the shelf or moving them does not increase the
value of the given product, but both are significant factors in a supply chain
and play a crucial role in gaining customer satisfaction and making it possible
to obtain efficiency (Bartholdi and Hackman, 2012).

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and Harrison (1995) determine a supply chains as “a network of facilities and
distribution options that performs the function of materials procurement,
transformation of these materials into intermediate and finished products, and
product distribution to customers”.

material handling and transportation allows you to configure the provider with
the customers’ requests, quick response for seasonal products, achieving the
product’s compatibility, modify product or packaging and organization of
distribution activities. Over time many companies have decided to set up their
supply chain in order to increase the level of customer service and demand
changeability. Customer service and logistic costs can be revised through
appropriate selection, storage and proper material handling. The
basic idea of the magazine and materials handling is “it cost-effectively
ship products to the right place, at the right time, and in the right quantity
without damaged or alterations” (Manzini et al, 2015). Warehousing and
materials handling engage untying a large number of issues related with design
and operational problems in manufacturing, distribution systems and economics
research. Establish the location of the warehouse and its design are strategic
problems which should be considered the first when creating many projects in
the supply chain. Hence significant knowledge about size of the warehouse, oftentimes
measured based on the amount, type and kind of storage space.

2.      Warehouse

order to obtain optimal conditions in the supply chain one should take into
account two types of decisions should be made. Constructive
decisions: location, capacity, and transportation channels. Coordination decisions: Supplier selection, partnership,
inventory ownership, methods of sharing information, demand forecasts,
production plans, inventory allocations, etc. All decisions are related to each
other and should be resolved at the same time with equal attention. Decisions regarding location have long-term effects
related to production, inventory levels and transport costs. Its gives serious effects in influencing the supply chain. An example may be a good distribution network which
ensures quick reactions. Each of the warehouse could be consider from three
points of view: processes, resources and organization. According to Rouwenhost
et al. (2000) materials arriving at a warehouse then are taken across a number of overtures named as processes. All of the
means, equipment and personnel needed to operate a warehouse is called as
resources. Organization includes all planning and control procedures used to
run the system. As a material/product is determined as a type of good, as an
item is called individual unit and connection of several items of several
products requested by customer is called a customer order. The process in the
warehouse can be divided into several stages. The first is in order the
receiving process, when the products are delivered by truck or internal
transport. In this phase, the products may be examined
or converted and awaiting for the transfer to next step. The next step after is
storage process where the items are allocated in storage locations. The storage
are may be divided to the reserve area where the items are stored in most
frugal way and the forward area where are easy to pick for the order. Orderpicking
relates to the movement of the items from storage location. As the last is the
shipping area where orders prepared, checked awaiting for loading.

Fig. 1 Typical warehouse functions and
flows (Tompkins et al. 2003).


The warehouse resources include personnel from which
depends the work in the warehouse and is one of the most important resource.
It’s also included the material handling equipment which is used to prepare the
shipment like sorter systems, palletizers, truck loaders and other equipment
which supports the orderpicker defined as orderpick auxiliaries, for example
bar code scanners. Warehouse management system – computer system- use to
control the processes. The movement of the items could be performed manually or
using pick equipment like for example reach truck. The warehouse resources
include as well the storage unit where the product could be stored like
pallets, carton boxes etc. and the storage system which could be the set of the
shelf or fully automated conveyors.

The last to describe is the warehouse organization. On
that part is included important decisions concern the process flow at the
design stage, how the area will be segregated in the warehouse, for example
will the picking area be divided to zones for only sorting or picking the
batches  or will be use the separate
storage and retrieval aisles. At this stage, a policy should be
established according to which the process flow will take place. Policies
should contain information about:

review at the receiving process which establish the
allocation of truck to docks;

At the storage process, are items transported to storage
system and are allocated to storage location, then will the storage spaces be
dedicated for one type of the items or divided to specific item groups. It has
to be prescribe where will be allocate the most often items, how the stock will
be replaced.

At the orderpicking process will that be assigned for one
or maybe more pickers, will have the zones divided depending on the type of
orders and how many times in the routing the location has to be visit.

After all assigned the responsibilities and task to the
personnel and equipment.


Fig 2. Framework for warehouse design and
operation issues. (Riccardo et al., 2014)


3.      Warehouse

designing a warehouse, many related factors must be taken into account. Designing
the warehouse takes place in succession of the following stages :”(…) concept,
data acquisition, functional specification, technical specification, selection
of means and equipment, layout, and selection of planning and control policies.” (Rouwenhost
et al.,2000). These
decisions can be divided into strategic, tactical and operational ones. Functional
and partly technical specification will include decision related to the process
flow and the level of automation. Choice of the storage systems and
dimension/layout of the warehouse are tactical agreements. Control policies precise
as to details should be discussed on the operational level.

During designing a warehouse the criteria
have to clearly define. The relative importance of the criterion
depends on the type of the warehouses. There are two types of magazines: the
distribution warehouse and the production warehouse. In both cases, the following criteria will
be considered: investment cost and operational cost, performance and bandwidth,
storage capacity, time of implementation and order quality accuracy. Storing
products and filling out external customer orders, usually consisting of a
large number of order lines (where each order line determines the amount of one
specific product) that’s the function of the distribution warehouse. The number
of products can be large, while orders can be small, which can result in higher
costs orderpicking process. Often, such warehouses are modified to
minimize the costs associated with picking the orders. An outstanding criterion is to get the
highest possible throughput of the warehouse with the lowest possible
investment and operating costs. Often, the combination of the required
bandwidth and the short waiting time results in the decision to transform the
warehouse into a more automated one. It is obvious that the costs increase with
the level of automation.

Storage of the raw materials, work in process
linked with a manufacturing these are functions of the production warehouse. Finished
goods and raw material may be stored for a long period of time. This
is the case when the delivery of materials exceeds the order quantity. A long
period of time causes that storage of materials becomes expensive. Most often
the material is stored in large quantities in an inexpensive system such as
pallet. One of the important criteria in this situation is
storage capacity. Primary target is to design a warehouse with usage of low
cost expenditure. The situation with the storage of work in process looks a
bit different. In order to avoid stopping the production the all of the
transactions have to complete fast. It can cause the determinant between the
time of establishment and the order fulfillment will be one of the main
criteria when designing the warehouse.

The storage of products has a strategic
role in the supply chain: an efficient organization of products in appropriate
locations enables these products to be moved faster inside the warehouse and
logistics channel, which increases the speed of delivery and the
competitiveness of enterprises. For a company to be competitive on the market,
it needs a warehouse with a high capacity located in a strategic point.
When deciding on the location, the
companies should ask themselves for a questions like how many warehouses should
be created, where they should be located in order to quickly respond to the
customer’s orders and satisfy its demand, while minimizing costs (Melachrinoudis
et al., 2000). While making decisions, the firms should not focus only
on the investment costs but also on how much local incentives and transport
times will affect them investment. Planning the number and location of
warehouses and distribution centers is determined on the basis of creating the
most optimal supply chain network. In the case of a well-organized supply chain
and distribution of warehouses and distribution centers in strategic positions,
a permanent network is created. The advantage of this is the lack of material
accumulation in the storage or shortage of it, production capacities are
related to its resources, warehouse capacity and distribution centers are
related to the inventory they handle, and transport costs are the actual cost
incurred and included in the whole process from raw material to fulfillment of
orders. . As a strategic place is
defined easy, fast and access to a variety of suppliers, spatial distribution
in relation to the producer and the recipient, raw materials should be stored
near their production and purchase finished product warehouses should be
located in centres of consumption demand, taking into account such factors as,
for example, the range of goods, the density of the retail network and the
frequency of purchases. Existence of access roads ensuring convenient
transport, utilities (water supply and sewage, electricity, telephone), and the
ability to arrange buildings in a way that ensures free entry, access, access
to the ramp/bays.

efforts made to gain a competitive advantage can be frustrated by one decision
– to build / rent a large / small warehouse space. How to calculate the
warehouse area in relation to the scale of our business for a given time
perspective or what size (scale) of our business can be implemented with the
existing warehouse space. The size and shape of the warehouse depends on the
types of materials stored there, and in a more general sense, on the profile of
the company’s activities in the industry (warehouses of the automotive industry
differ significantly from the cosmetics / pharmaceutical or bulk materials
stores). The management boards of the companies and / or logistics managers relatively
often have a serious “warehouse” dilemma to consider: to build or
rent, expand or not, move to a new warehouse or get rid of excess space.
Regardless of what question they ask, something always boils down to two issues
– the design of a new warehouse or the assessment of the surface resources of
the “old”.

Assortment items or product codes represent all products
stored in the warehouse. Having knowledge about their quantity is important to
ensure the appropriate number of storage places for different types of
products. As order picking takes place in a certain area of the warehouse, the
speed with which you can reach selected products will determine the efficiency
of the facility’s operation. The greater the distance between storage
positions, the more work will be consumed by the confection process. Questions to answer when planning a new
warehouse are: “How many pallets are we currently saving?”,
“What is our growth rate” and “How many pallets will we store in
a year or two?” An analysis of current and future needs is one of the key
elements that should be considered during this type of projects. The
facility layout plays an important role in the business success of the company (Johnston,
1995). However, regardless of the situation, the overall layout of the facility
must be compatible with a good storage system, i.e. a system that meets the
following needs: the best use of space, minimizing the trans-shipment of goods
to the minimum, ease of access to the stored product, maximum possible rotation
rate, maximum laying flexibility product and easy control of the quantity of
stored goods. The following zones should ideally be
defined in the design of the warehouse and its layout:
A. Loading and unloading zones.
B. Reception area.
C. Storage area.
D. Order picking area.
E. Shipping zone.






4.      Conclusion.

When designing a new warehouse, it is
necessary to identify the needs, possibilities and expectations related to the
nature of the company, the quantity of the assortment held and its rotation.
Knowledge of the number of items in the assortment, the number of pallets
stored, the number of orders packed per day or the number of pallets that make
up one order is essential when designing a new warehouse. This knowledge
enables us to develop the space efficiently and in accordance with the
principles of material flow.