Chapter One
Introduction
1.1 Preamble
Warehouse Management System (WMS) is one of effective
strategies to accelerate an organization's development by giving priorities on
the reliability of its supply chain.
The main purpose of WMS is to efficiently
control all processes in the supply chain (the reception and delivery of
products, stock facilities management, stock of products, and packing and
shipping). However, WMS development paradigm so far is focused only on the
classical data management, where input from the end user is the main
determinant of output validity or the resulting decisions. This raises many
problems, especially in the supply chain management of national-scale retail
companies, where high thoroughness, accuracy, and precision are the demands of
supply chain managers. Even though a company uses WMS, human characters and
cases diversities still cause supply chain managers to be the target of
mistakes in every muddle of data processing and product distribution. Is the
product expired before sending? Do the products have defects when sent to the
reseller? Is there any mistake in stock product demand? Do stock products pile
up in the warehouse?
These classic WMS limitations certainly are not
advantageous for the organization because WMS typically needs large budget
allocation. This problem becomes even more complex because WMS is urgently
needed in organizations that handle goods that are easily expired, such as
agroindustry businesses. As an agricultural country, the development of agroindustry
becomes one of the milestones of food security in Indonesia. Agroindustry has
been able to give real contributions for the development of the developed
countries because: (1) agroindustry conducts raw material transformation
including the transformation of subsistence products into final products for
customers; (2) agroindustry is able to create working opportunity; (3)
agroindustry processes yield important export commodities; (4) agroindustry
saves the cost by reducing the production loss after harvest and creates
distribution link.
1.2 Statement of the Problem
An intelligent warehouse integrates computer
systems, material handling equipment, storage equipment, and users into a
single integrated work element [2]. The new breakthrough developed to overcome
the limitations of the traditional WMS is i-WMS (Intelligent Warehouse
Management System). I-WMS is a solution in the supply chain field obtained by
applying results from intelligent systems to WMS processes. The i-WMS model
gathers several artificial intelligence techniques to support warehouse
management activities as shown in Figure 1.
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Master
Plan of Intelligent Warehouse Management System
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 Real Time
Transportation   Monitoring
System Intelligent
Forecasting System |
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Forecasting needs of resellers
using extreme methods of
machine learning in the context
of I-WMS
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Geographic Information System,
neural network
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Bee colony optimization algorithm
implementation on a prototype intelligent logistic system
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 Adaptive Wareho
System
Intelligent
Logistic System
C
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Metahueristic
algorithm
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Warehouse System
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Figure 1. The Master Plan of Intelligent Warehouse
Management System
1.3 Objectives of the Study
The Objectives of the study are given below:
·
to understand the
world class operations and procedures in the warehouse;
·
how efficiently the
warehouses are managed throughout the world
·
to know about the
warehouse management system of Aftab Group
1.4 Methodology
The research reported in this paper tries to contribute
to a new discourse on WMS development. Specifically, the contribution consists
of (1) providing a brief description on the practical implementation of
artificial intelligence in the main WMS processes; (2) providing an explanation
on how to the use new technologies, such as bee colony optimization, fuzzy
controlling, extreme learning machine, RFID, group decision support system
(GDSS), and Android programming, in WMS development; and (3) providing a data
integration model in the heterogeneity of applications among subsystems that
are going to be built. The i-WMS system consists in five subsystems, namely:
(1) Intelligent Logistics System (ILS), which will use bee-colony optimization
algorithm to create effective order schedules; (2) Adaptive Warehouse System
(AWS) in order to place goods in the storage based on ideal temperature and its
expiration time; (3) Intelligent Forecasting System (IFS), which will use
extreme learning-machine algorithm to effectively predict the number and the
inventory of products such that reseller's needs can be fulfilled on time; (4)
RealTime Transportation Monitoring System (RTMS) to provide goods delivery
information and visualization by using Google maps supported by GPS, GPRS, and
RFID; and (5) Intelligent Executive Summary System (IESS) to compile decision
recommendations for decision makers using a GDSS (Group Decision Support
System).
Chapter Two
Overview
of the Company
2.1 Introduction
Stepping into 20th Century, starting venture since 1961.
The Aftab Group is proclaiming luster presence in business arena and made a
remarkable history in the private sector era that has been nourished and
bloomed in different business concerns. Where most of the projects are telling
successful stories resulting in playing a vital role to our economy.
Over the series of decades AFTAB itself became a brand having wide range of industries comprising of Aftab Global Textiles Ltd., Milnars Pumps Ltd., Sea Trade Fertilizer Ltd., Aftab Fertilizers & Chemicals Ltd., Aftab Milk & Milk Products Ltd., Aftab Foods Ltd., Aftab Garments Ltd., Aftab CNG Ltd., Aftab Holdings Ltd., Aftab Properties Ltd., Aftab Global Foundation Ltd., A.G. Companies accompanied with other Local Concerns and Overseas Business named ALIB GROUP. Moreover, Aftab Group is one of the major shareholders of Uttara Bank Ltd.
Aftab Group is well positioned to Capitalize on strong
growth across industries in both the domestic and global markets. Each Group
Company is managed by an independent professional team with significant depth
of experience. Management teams have established a clear strategic plan that
will further strengthen the overall platform.
The Group intends to leverage its market position and global scale, further diversify operations into highly profitable sectors, Capitalize on the domestic growth opportunity and selectively pursue international opportunities going forward.
The Group intends to leverage its market position and global scale, further diversify operations into highly profitable sectors, Capitalize on the domestic growth opportunity and selectively pursue international opportunities going forward.
2.2 Management
Azharul Islam
The Founder
& Executive Chairman - Aftab Group
Born in 1948, son of Late Alhaj Aftab Uddin Ahmed, had
his early education in M.Com. specially in Management related subjects with
creditably. Who is endowed with the Chairman of Uttara Bank Limited. In the
early years, he gained a series of experiences by being involved in the
management of the Groups diversified business operations. He devoted himself at
the very outset of the company and found a ladder of progress by his undaunted
efforts with the passage of time. He has been the key person all the time that
revolves around the Company at any stage towards the growth in keeping harmony with
the socio-economic factors. He is fond of taking challenges and showing
acceptability, responsibility and accountability in every sphere of business
activities.
Iftekharul
Islam
Chairman &
Managing Director - Aftab Group
Born in 1980, son of Azharul Islam, had his academic
career in Commerce graduation accompanies with Bar-at-Law later on. Who is
leading the position of Vice Chairman of Uttara Bank Limited. He attained
valuable experience by being involved in the management of groups diversified
business operations. His outstanding personality and go and get it attitude
made him leading the company staying at the front and remaining as one of the
top companies in the country. He cherished a dream that came into existence as
Aftab Group now a day. He is playing a major role in the field of
administration development, innovation and expansion of every Concern belongs
to this Group.
2.3 Aftab Group in Bangladesh
·
Aftab global textile
mills ltd.
·
Milnars pumps ltd.
·
Sea trade fertilizer
ltd.
·
Aftab fertilizers chemicals
ltd.
·
Aftab milk &
milk products ltd.
·
Aftab foods ltd.
·
Frozen foods ltd.
·
Aftab spinning mills
ltd.
·
Aftab garments ltd.
·
Aftab cng ltd.
·
Aftab holdings ltd.
·
Aftab properties
ltd.
·
Aftab real estate
ltd.
·
Aftab construction
ltd.
·
Aftab hotels &
resorts ltd.
·
Aftab jute mills
ltd.
·
A.g. Companies.
·
Aims corporation
ltd.
·
Aftab global
foundation ltd.
AFTAB GROUP HEAD OFFICE
Uttara
Bank Bhaban (4th & 5th Floor)
90, Motijheel C/A, Dhaka-1000
Phone : 7161874, PABX : 9554236, 9551381
Fax : 7166227, 7162252
Email : aftab_g@aitlbd.net
Web : www.aftabgroup.com.bd
90, Motijheel C/A, Dhaka-1000
Phone : 7161874, PABX : 9554236, 9551381
Fax : 7166227, 7162252
Email : aftab_g@aitlbd.net
Web : www.aftabgroup.com.bd
OVERSEAS HEAD OFFICE
41-44,
75th Street, Elmhurst
Zip
Code-11373, New York, U.S.A.
Phone :
(718) 205-1890, (718) 205-8362
Fax :
(718) 205-1238
Email :
alibinc@aol.com
Web :
www.alibgroupinusa.com
Chapter Three
Theoretical
Overview
3.1 Warehouse Management:
Warehouse Management
provides the insight into your inventory and the warehouse management tools to
help you increase customer satisfaction and reduce costs. Warehouse Management
exchanges information with many other functional areas in the solution
including Logistics, Production and Trade, to help improve your overall
business performance.
Warehouse Management is used to optimize:
·
Inventory: With our complete inventory
management capabilities, track data on every unit utilizing the latest
technologies.
·
Labor: Make people more efficient by
managing their tasks and improving their processes. Plan and balance workload
and monitor activities with integration to Labor Management.
·
Physical Space: Cross-docking and
flow-through capabilities, plus integration with Yard Management, reduce the need for warehouse
space.
·
Time: Automate picking, packing and
shipping, and minimize the number of moves per order
3.2 Literature Review:
Warehouse:
A warehouse is a planned space for the storage and
handling of goods and material. Its main purpose is to keep the goods for the
longer time and whenever there is a demand for the product, it will be supplied
as fast as possible and reaches the customer in its original position.
NEED FOR WAREHOUSES
1. Seasonal Production :
The agricultural commodities are harvested during certain
seasons, but their consumption or use takes place throughout the year.
Therefore, there is a need for proper storage or warehousing for these
commodities, from where they can be supplied as and when required.
2. Seasonal Demand:
There are certain goods, which are demanded seasonally,
like woolen garments in winters or umbrellas in the rainy season. The
production of these goods takes place throughout the year to meet the seasonal
demand. So there is a need to store these goods in a warehouse to make them
available at the time of need.
3. Large-scale Production:
In case of manufactured goods, the production takes place
to meet the existing as well as future demand of the products. Manufacturers also
produce goods in huge quantity to enjoy the benefits of large-scale production,
which is more economical. So the finished products, which are produced on a
large scale, need to be stored properly till they are cleared by sales.
4. Quick Supply:
Both industrial as well as agricultural goods are
produced at some specific places but consumed throughout the country.
Therefore, it is essential to stock these goods near the place of consumption,
so that without making any delay these goods are made available to the
consumers at the time of their need.
5. Continuous Production:
Continuous production of goods in factories requires
adequate supply of raw materials. So there is a need to keep sufficient
quantity of stock of raw material in the warehouse to ensure continuous
production.
6. Price Stabilization:
To maintain a reasonable level of the price of the goods
in the market there is a need to keep sufficient stock in the warehouses.
Scarcity in supply of goods may increase their price in the market. Again, excess
production and supply may also lead to fall in prices of the product. By
maintaining a balance in the supply of goods, warehousing ensures price
stabilization.
Five basic service benefits are achieved through
warehousing:
n Spot stock,
n Assortment,
n Mixing,
n
Production support,
and
n
Market presence
3.3 Organization Structure of Stores
Division
Stores manager
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Warehousing –
World class Practices
Using the best practices in managing the stocks of the
industry becomes the part of world class practices. Using most efficient
methods for controlling the product inventory and adopting outsourced
techniques in order to control warehouse activities, including receiving,
storing, assembling, kitting, picking and the dispatching of customer’s/ user’s
orders. Some of the points need to be kept in mind in relation to the world
class practices. They become a platform for the adaptation of the world class
practices in the organization. They are,
1. Receipt and Inspection
of Materials:
The following procedures are
adopted in a warehouse on receipt of materials;
·
Receipt of material:
The materials on receipt are taken to their allotted spaces in the warehouses.
The delivery slip and the bill copy are filed in the warehouse for reference.
The original bill reaches the accounts department for the payment to be made.
·
The materials are
then Unloaded from the delivery trucks. The materials are handled carefully
while unloading. Old worn out truck tires are used to provide a cushioning
effect while unloading heavy materials.
·
The materials are
then inspected for any defects against the required and standard
specifications. This is done by inspection controller in large organizations.
The quality controller also plays a vital role in material inspection.
·
The Control samples
or standards are kept separately to check the materials to be inspected.
·
The Storekeeper
documents the accepted materials.
2.
Issue of Materials
The procedure for the issue of stock items includes that
the materials are to be issued, to authorized persons only and upon
presentation of completed and approved store requisition and issue note.
In large organizations the distribution of issue notes is
done by authorized persons. They issue different colored slips to the different
departments when a stock item is issued.
Pink Copy – User
Green Copy – Finance Department
Original (White) – Stores Division
3. Stock & Inventory Management
The biggest problem comes when we keep too much stock
with us, so we need a proper check on getting and sending the material. Stock
within the warehouse need to taken care which will surely increase the cost of
the organization and finally, it will increase the price of the product.
·
Stock Control is used to evaluate how much stock is used. Stock taking is done by
the Store Keeper. It is also used to know what is needed to be ordered. Stock
control can only happen if a stock take has taken place. Stock rotation must be
put into use with stock control by using the oldest products before the newer
products.
·
Periodic Stock
Checking: There must be proper check over the stock; it must be
evaluated from time to time. The task of the operation manager is to make a
proper flow of stock as when it is required. From time to time it must be
checked that how much of goods are with them and give the required information
from time to time to the production department, so that none of the stock will
remain stand still.
To ensure a proper check on the
product that is with us, we need to use tools, such as;
ABC (Or Pareto) Analysis
ABC analysis is an inventory categorization technique often used in
materials management system. It is also known as Selective Inventory Control. ABC analysis provides a mechanism
for identifying items which will have a significant impact on overall inventory
cost whilst also providing a mechanism for identifying different categories of
stock that will require different management and controls
When carrying out an ABC analysis, inventory items are
valued (item cost multiplied by quantity issued/consumed in period) with the
results then ranked. The results are then grouped typically into three bands.
These bands are called ABC codes. It divides inventory into three classes based on
annual cost volume
Class A - high annual cost
volume
Class B - medium annual cost
volume
Class C - low annual cost
volume
Cycle Counting
A cycle count is an inventory management
procedure where a small subset of inventory is counted on any given day. Cycle
counts are less disruptive to daily operations, provide an ongoing measure of
inventory accuracy and procedure execution, and can be tailored to focus on
items with higher value or higher movement.
To conduct efficient and accurate
cycle counts, many organizations use some form of software to implement an inventory control
system, which is part of a warehouse
management system. These systems may include mobile computers with integrated barcode scanners that allow the operator to
automatically identify items, and enter inventory counts via keypad. The
software then transmits data to a database on a host system which can generate inventory
reports.
Product coding:
Product code is a unique identifier, assigned to each finished/manufactured
product which is ready, to be marketed or for sale. It enables easy method of
tracking the product until it reaches the customer or end user. The various
Codes used are:
·
Universal Product
Code, common bar code used to identify products
·
Electronic Product
Code
·
Serial number, a
number identifying an item
Quality records are maintained for the materials/stock
specification.
These include
·
Procedures to be
followed in handling material/stock
·
Detail
specifications of every item.
·
Inspection reports.
·
Quality reports.
·
Descriptive reports.
·
Details of approval
period of retention of various documents.
3.4 Material Storage & Handling:
Handling the material is one the most important part of
warehousing. Material Handling is the movement, storage, control and protection
of materials, goods and products throughout the process of manufacturing,
distribution, consumption and disposal.
The focus is on the methods, mechanical equipment,
systems and related controls used to achieve these functions. The material
handling industry manufactures and distributes the equipment and services
required to implement material handling systems.
Material handling systems range from simple pallet rack
and shelving projects, to complex convey or belt and Automated Storage add
Retrieval Systems (AS/RS).
Equipments used for handling material include:
Hydraulic jacks, Dump trucks, Wheel Barrows, Trolleys, Forklift
Truck (Diesel/ Battery operated), Damaged tires used for providing cushion
support for heavy materials during unloading; Iron bars, Slings and ropes, Chain
Pulley Blocks, Hammers, Spanners, Pliers, Wooden Blocks, pallets (Wooden,
plastic)
Effective Materials Handling
·
Good materials
handling practice is the responsibility of all members of the manufacturing
team, form the top management down to the trucker working in the aisle of the
plant.
·
Optimum
effectiveness of materials handling procedures can only be attained if each
individual recognizes and plays his part. Education and training in materials
handling are prerequisite to minimum materials handling costs.
In world class warehouses the responsibilities assigned
such a staff group may well include:
1.
Determining all new
methods for the handling of new materials or products and selecting the
equipment to be utilized.
2.
Conducting research
in materials handling methods and equipment.
3.
Conducting education
and training for all manufacturing personnel in good Material handling
practices.
4.
Establishing
controls of current materials handling costs by analysis of costs and
comparison to budgets of either unit or total materials handling costs.
5.
Initiating and
conducting a continuing materials handling cost-reduction or cost improvement
program.
6.
Determining
measurements for effectiveness of materials handling that can become the yard –
sticks for progress in this activity.
7.
Developing and
conducting a preventive maintenance program for all the materials handling
equipment.
3.5 Material Handling Time:
Reducing handling increases, the productivity and lowers
costs. If we are putting the product into the store and picking from store it
will raise its handling time and will prove to be cost ejective for the firm.
Again and again putting the resources on a material;
whether in its transportation, packaging, storing, etc will raise the expenses
of the firm which is not acceptable in any form.
If we are putting our men, material and money in sending
the good to the customer again and again it will finally affects the overall
expenses of the business concern.
In a world class warehouse the materials are inspected
before they are shipped, to ensure the quality and life of the product.
Storing the product in relation to flow/ rate of movement:
Demand will not remain same for
all of the year, there will be rise and fall in the demand from time to time.
For whole of the year there will be variations in the demand and supply of the
product, so as per this demand we need to maintain the flow of material within
the warehouse.
Demand forecasting is the way of estimating the quantity of a product or
service that consumers will purchase.
Demand forecasting involves techniques including both
informal methods and quantitative methods, such as the use of historical sales
data or current data from test markets.
Demand forecasting may be used in making pricing
decisions, in assessing future capacity requirements.
The Operations manager forecasts the demand and accordingly
the stock and inventories are stocked in the warehouse.
Location & Layout of the Warehouse:
·
A proper zoning of
the warehouse must be ensured.
·
Each and every
product must be identified very easily when it is required.
·
They must be
assigned with the numbers and sign marks in order to identify them easily and
save time.
·
We must prepare
record of item quantity, time and arrival location, storage location, quantity
balance, and ultimate location.
·
Maintain Real-time
information on the quantity, location, status, and history of every inventory
item within the warehouse. Check inventory availability across all warehouses
during order creation.
·
Support your complex
needs with multi-location inventory, kits and assemblies, multiple units of
measure, lot tracking, serialized inventory and specific costing, matrix items.
Provides real-time indicators of material received on status ok, discrepancy
material, or part per million statistics.
Warehouse Location:
There is no limit on the number of warehouses that may be
defined within an entity, and there is no limit on the number of locations that
may be defined within a warehouse.
Warehouse locations have many synonyms including bins,
zones and storage area, among many others, but in there must be a location is a
specific storage area, which may constitute a rack/bin type of entry, or a
larger bulk storage area. The locations can also identify shop floor areas
where inventory is held prior to “pull” type material issues. Shop floor
locations of this type are considered by the system to be a part of the
warehouse. A separate location classification can also be given to shipping
and/or receiving locations.
For warehouse picking purposes, a location sequence
number can be assigned to locations and will be used as an optional method when
defining the order in which sales orders or production material is to be
picked.
A location can also be used to track the inventory of
vendor and/or customer distributors. A single location of the “distributor”
type will be used to cover an entire customer distributor or vendor distributor
inventory.
If the user does not wish to maintain location control in
the inventory, both a default warehouse and a default location must be defined
in the facilities parameters. An entry of these two default values will
indicate to the system that only the default location is to be used for all
types of inventory transaction.
Location Flexibility:
·
Location flexibility refers to the
ability to quickly adjust warehouse location and number in accordance with
seasonal or permanent demand changes.
·
For example,
in-season demand for agricultural chemicals requires that warehouses be located
near markets that allow customer pickup.
·
Outside the growing
season, however, these local warehouses are unnecessary.
·
Thus, the desirable
strategy is to be able to open and close local facilities seasonally.
·
Public and contract
warehouses offer the location flexibility to accomplish such requirements.
Warehouse
Layout and Design:
The Warehouse
·
Provides for the
transportation interface.
·
Provides for
order-picking space.
·
Provides storage
space.
·
Provides recouping,
office, and miscellaneous spaces.
·
Determines each
item’s order quantity.
·
Converts units into
cubic footage requirements.
·
Allows room for
growth.
·
Allows adequate
aisle space for materials handling equipment.
Warehouse layout includes:
o
Zones
o
Locations
o
Equipment
o
Stations
Zones:
The zones are specific
locations inside a warehouse that has common properties.
·
A Zone ID used to
represent a group of locations that share common properties (refer zone,
shipping zone, returns zone)
·
Used to manage
product flows into and out of groups of locations
·
Used to determine
users’ work assignments in the zone
·
May represent a
physical area
·
A location can
belong to only one Zone
Locations:
They are various physical areas
inside a warehouse
·
A Location ID is
given to a space in a location where inventory is placed for any length of time
·
Always associated
with a zone and a location
·
Primary mechanism
used for tracking and processing inventory as it is received, stored,
retrieved, and shipped
Example Locations:
o
“STOR1-01020401” =
at Aisle 1, Bay 2, Level 4 Bin 1
o
“RECEIVE-1” =
Receiving Dock 1
o
“V1-000001” = Value
Added Services Station 1
Equipment:
Equipment defines a vehicle or piece of machinery used to
perform a processing activity such as receive, move, pick, pack, or ship within
a warehouse
Stations:
·
A physical location
that is used as a work space in order to perform a specific activity or a group
of activities
·
A Station is unique
for a Node
·
Used for:
o
Creating tasks
o
Recording location
where work is being performed
o
Associating devices
that may be used at the station level
Examples:
o
Receiving Station
o
Ship/Sort Location
o
Value Added Services
Station
3.6 Software Based Inventory Management
System
The Inventory
Management System uses a web-based interface to display inventory data to
the stock manager client. The product
will use of open-source software primarily due to cost of implementation. A JSP
(JavaServer Pages) servlet will be hosted by an Apache Tomcat web server (on
top of any choice of operating system, although a flavor of Unix is recommend). The first feature of the Stock Manager Client
web interface component allows the Stock Manager Client to view the current
stock of products, along with the capabilities of searching and sorting the
products. The second feature of the
Stock Manager Client web interface will allow the user to modify application
settings, such as the threshold for email notifications, frequency of inventory
scans (daily at a particular hour, weekly, monthly, etc.), and security
settings. The third feature of the Stock
Manager Client web interface will allow the user to update the inventory during
the restocking process. See Figure 1. Since a web interface will be used, a network
that supports the HTTP/HTTPS protocol must exist, whether it is a private
network for an isolated customer deployment or an Internet connection for a
multi-site customer deployment. The
bandwidth of the network depends on the frequency of transactions. A bandwidth
of at least 10 Mbps is recommended (small commercial deployment). The database to store the inventory data will
use a MySQL database.
Since
the software and hardware resources of cash registers are not available due to
the variation in software and cost, we will be developing an emulated Cash
Register client to interface with actual cash registers. The Cash Register client will emulate
purchases by having a simple graphical interface with fields for a barcode
number and quantity and a button to make a purchase. See Figure 2. As these resources become available, the
actual implementation for specific cash register models will be considered for
future releases of the Inventory
Management System. JavaPOS will be
used as a reference for emulating cash registers, and could potentially be used
to create the actual implementation of the future release.
Alternatively,
commercially licensed products are available.
In particular, the Microsoft ASP.NET (Active Server Pages) framework can
be used. This requires a Microsoft
ASP.NET web server and a Microsoft SQL Server database, which also requires a
Microsoft operating system. However, these alternative system requirements will
increase the overall costs for both implementation and deployment.
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Figure
1. The three features of the Stock
Manager Client web interface.
Figure 2. The
emulated Cash Register Client interface.
System and
Software Architecture
The
programming language for the Inventory Management System application
will be in Java since the JSP/Tomcat architecture will be used. Both types of clients will communicate with
the server using Java Remote Method Invocation (RMI) with Secure Socket Layer
(SSL). Thus, security will be upheld by
HTTPS in both a private network and a network connected to the Internet. The application will use a client-server model. See Figure 3.
Furthermore, the Java Database Connectivity (JDBC) will
use the MySQL Connector/J driver for the server to communicate to the inventory
database. Upon receiving requests from
the clients, the server will issue transactions to the MySQL database with ACID
properties. The Cash Register clients
will maintain local log files in the event of communication downtime between
Cash Register clients and the server. Upon
re-establishing communication, the Cash Register clients will re-synchronize
with the server by issuing the requests that occurred during downtime.
Alternatively,
if the Microsoft ASP.NET framework is used, then the programming language for
the application will be Microsoft C# with a Microsoft SQL Server database. The Microsoft .NET framework includes
built-ins for easy database interfacing and .NET Framework Remoting (analogous
to skeleton and stub), which has the ability to also use HTTPS.
Figure
3. Client-server architecture model of
the Inventory Management System application.
Lifecycle Plan
Objectives
The main goal of Inventory Management System is to ensure consistent availability of
supplies for consumers. Thus, Inventory
Management System is directed toward owners of small to large stores and stock managers who are responsible of
maintaining sufficient goods on hand in a retail or manufacturing
business. It can scale from a single
computer running both client and server software up to multiple stores and
warehouses.
Schedules
The time estimated to complete the Inventory
Management System project
is fairly short. There will be three
major Win-Win Spiral Model cycles through our prototyping stage, beta release,
and final release. We will need two
weeks of designing the architecture and implementing core features and five
weeks of adding functionality and testing.
The project can be completed by 6-8 people in at most 7 weeks.
Feasibility Rationale
Assumptions
The above design should works for the Inventory
Management System application.
However, we are emulating a cash registers interface to work with our
software by simulating barcode inputs. A
more realistic design of cash register interface can be done to suit the
integration, as the interface does not interfere with the data collected. We expect that the cash registers clients are
able to update their data to the current point of sale in case of loss of
connection to the server. The particular
restocking procedure adopted by each store does interfere with the feasibility
and accuracy of the application as it does not remind the stock manager to
update the data each time they had done any restocking. We also trust that that the Secure Socket
Layer (SSL) is reliable in creating a secure connection between a client and a
server.
Risks
One of the major risks covered by this application is
theft breaks synchronization between the inventory and the database. The information could be generated by the
data stored in this application. The
confidence level of trusting data generated depends on the accuracy of the
restocking procedure. Therefore, we are
facing a risk of reckless stock manager who could detriment the accuracy of the
data. As of the reliability of the SSL
encryption, a resolution for this could be by developing SSL and digital
certificate policy and configuration guidelines. In addition, giving a choice to the user to
set the minimum level of SSL used by not violating the policy should convince
them the trustworthiness of the application.
Another risk is the competition from other Point of
Service software. There are several
large competitors in this field including a solution from Microsoft; however,
all of these tend to be expensive. Inventory Management System will be a
low cost solution mainly targeted at smaller businesses while including the
possibility of later expansion.
Chapter Four
Warehouse Design
4.1 Warehouse Design Criteria
Warehouse
design criteria address physical facility characteristics and product movement.
Three factors to be considered in the design process are:
n the
number of stories in the facility,
n height
utilization, and
n Product
flow.
Number of stories in the
facility
n The
ideal warehouse design is limited to a single story so that product does not
have to be moved up and down.
n The
use of elevators to move product from one floor to the next requires time and
energy.
n The
elevator is also often a bottleneck in product flow since many material
handlers are usually
competing for a limited number of elevators
Height utilization
n Regardless
of facility size, the design should maximize the usage of the available cubic
space by allowing for the greatest use of height on each floor.
n Most
warehouses have 20- to 30-foot ceilings; although modern automated and
high-rise facilities can effectively use ceiling heights up to 100 feet.
n Through
the use of racking or other hardware, it should be possible to store products
up to the building's ceiling.
n Maximum
effective warehouse height is limited by the safe lifting capabilities of material-handling
equipment, such as forklifts
Product flow
n Warehouse
design should also allow for straight product flow through the facility whether
items are stored or not.
n In
general, this means that product should be received at one end of the building,
stored in the middle, and then shipped from the other end.
n Straight-line
product flow minimizes congestion and confusion.
4.2 Operational standards needed:
1.
Costs & utilization of Resources :-
Resources are always limited, so we need to utilize them
at the optimum level and make maximum benefit out of them. Whether it men,
material or labor, resources are always scarce in nature, which demands for its
best utilization. Whenever the resources are fully utilized, the cost will
naturally come down.
2.
Performance of activities :-
A number of activities are to be performed within the
organization or the warehouse. Every activity to be looked in a better way and
should taken care. From lifting the material from the trucks to taking it to
the store, care should be taken, to save the goods or product from breakage or
damage. A machine has to be checked from time to time for its smoothness of
working. Projects need to be handled carefully, while planning and there
execution.
3.
Accuracy of activities :-
The orders that are to be given must be dispatched as per
the guidelines and in a complete way. Whenever there is order for the product,
as the product is demanded, guidelines are forward to the production department
and as per the specification goods are delivered.
4.
Lead time for activities :-
The time taken from the receipt of order till the time of
dispatching of goods is known as lead time.
In the manufacturing environment, Lead Time has the same
definition as that of Supply Chain Management, but it includes the time
required to ship the product to the purchaser. The shipping time is included
because the manufacturing company needs to know when the parts will be
available for Material requirements planning. It is also possible for lead time
to include the time it takes for a company to process and have the part ready
for manufacturing once it has been received. The time it takes a company to
unload a product from a truck, inspect it, and move it into storage is
non-trivial. With tight manufacturing constraints or when a company is using
Just in Time manufacturing it is important for supply chain to know how long
their own internal processes take.
4.3 Warehouse Safety
and Security:
Warehouses deals with large amount of inventory that need
to be kept under proper observation and must undertake the most efficient check
system. Goods must be safely loaded and must be taken care when they are taken
out of the vehicle until it reaches the store where it has to be kept.
·
Entry to warehouse
must be limited to authorize personnel.
·
Operations Manager should
hold the warehouse keys at the closing of the warehouse.
·
Issue of stock and
inventory to authorized personnel.
·
There should be
adequate safety from fire and the materials are to be stored under their
required storage conditions.
4.4 Multitasking work force:
World class warehouses have multitasked work force; who
are able to perform several tasks within the warehouse. Work force must be
active in order to take the decisions as per their talent in difficult
situations. Certain things that need to be considered are as follows;
Communication
In warehousing a message is transferred from one person
to another by the means of communication, which need to be taken care for
accuracy.
Managing Change
To be successful with any change initiative - such as a
warehouse reconfiguration, a change in processes or in ways of working -
getting the direct input of the warehouse team to your work at all stages is of
paramount importance. These are the people who will be most affected by the
change and involving them early and at all stages enables them to become most
efficient.
4.5 Warehouse Management Systems (WMS)
It is a key part of the supply chain
and primarily aims to control the movement and storage of materials within a warehouse
and process the associated transactions, including shipping, receiving, put
away and picking. The systems also direct and optimize stock put away based on
real-time information about the status of bin utilization.
Warehouse management systems often
utilize Auto ID Data Capture (AIDC)
technology, such as barcode scanners,
mobile computers,
wireless LANs
and potentially Radio-frequency identification (RFID)
to efficiently monitor the flow of products. Once data has been collected,
there is either batch synchronization with, or a real-time wireless
transmission to a central database. The database can then provide useful
reports about the status of goods in the warehouse.
The objective of a warehouse
management system is to provide a set of computerized procedures to handle the
receipt of stock and returns into a warehouse facility, model and manage the
logical representation of the physical storage facilities (e.g. racking etc),
manage the stock within the facility and enable a seamless link to order
processing and logistics management in order to pick, pack and ship product out
of the facility.
Warehouse management systems can be
stand alone systems or modules of an ERP system or supply chain execution
suite.
The primary purpose of a WMS is to
control the movement and storage of materials within a warehouse – you might
even describe it as the legs at the end-of-the line which automates the store,
traffic and shipping management.
In its simplest form, the WMS can
data track products during the production process and act as an interpreter and
message buffer between existing ERP and WMS systems.
Warehouse Management is not just
managing within the boundaries of a warehouse today; it is much wider and goes
beyond the physical boundaries. Inventory management, inventory planning, cost
management, IT applications & communication technology to be used are all
related to warehouse management. The container storage, loading and unloading
are also covered by warehouse management today.
Even production management is to a
great extent dependent on warehouse management. Efficient warehouse management
gives a cutting edge to a retail chain distribution company. Warehouse
management does not just start with receipt of material but it actually starts
with actual initial planning when container design is made for a product.
Warehouse design and process design within the warehouse is also part of
warehouse management. Warehouse management is part of Logistics and SCM.
Warehouse Management monitors the
progress of products through the warehouse. It involves the physical warehouse
infrastructure, tracking systems, and communication between product stations.
Warehouse management deals with
receipt, storage and movement of goods, normally finished goods, to
intermediate storage locations or to final customer. In the multi-echelon model
for distribution, there are levels of warehouses, starting with the Central
Warehouse(s), regional warehouses services by the central warehouses and retail
warehouses at the third level services by the regional warehouses and so on.
The objective of warehousing management is to help in optimal cost of timely
order fulfillment by managing the resources economically.
Chapter
Five
SWOT Analysis of Aftab Group
5.1 Strengths:
Marketing
- Company and parent group reputation is very high.
- Already a market challenger in processed chicken
market
- Have some reputation in further processed chicken
market.
- Products are available in key super-malls.
- Higher class of A category customers are aware of the
products.
- Financials
- Financial strength of the company is very strong.
- It’s possible to make promotional expenses as sales
begin.
- Cost of availability of capital is low.
Organization
- Management of the company is eager to build a strong
organizational set-up to build up the market.
- Skilled and experienced manpower in the production
facility exists.
5.2 Weaknesses:
Marketing
- There is a significant confusion raised among
consumers regarding Aftab consumer products and chicken products.
- New brand name sub-brand names are necessary and
urgent to be developed.
- Only highest category super-malls currently carry
Aftab chicken further processed products and existing product pricing is
out of reach of middle class population due to larger pack sizes only.
- Brand perception seeing the current product packaging
is worse compared to the main competitor, Rich brand.
- Net proper support from factory. Sometimes products
supplied from the factory do not with the order requirements.
- Product size disorders are another important problem
- There is no marketing and Branding team in the
company.
- Paper packs of the key products are hard to store in
the refrigerator and most of the times they are torn.
- Product packaging needs a over- hauling to increase
its standard, to meet international and local regularities, and make them
attractive to the endconsumers.
- New products need to be launched to meet the need of
two segments of consumers; one for higher class and the other for middle
class population.
Objectives
The main
objective of this study is to evaluate the performance of Aftab Group based on
marketing strategies and practices and pointing the ways to be more competitive
as well as a projection of the company for the next following the industry it
belongs. This study will help in realizing the present company status in terms
of competitors and what strategies will be helpful to resolve the existing
problems.
5.3 Opportunities
Market share
is the proportion of total sales of a product during a stated time period in a
specific market that is captured by a single farm (Etzel,Walker, Stanton,
1997). A firm’s percentage of the total sales volume generated by all
competitors in a given market (Bagozzi, Rosa, Kirti, Chelly, Coronel, 1998).
Cravens and Piercy (2003) stated that company sales divided by the total sales
of all firms for a specified product market determine the market share of a
particular firm.
They also
stated that market share can be used to forecast future company sales and to
compare actual market position among competing brands of a product. It can be
the ratio of sales revenue of the firm to the total sales revenue of all firms
in the industry, including the firm itself (Farase, Kimbrell, Woloszyk).
According to Kotler (2003) company sales do not reveal how well the company is
performing relative to competitors. For this purpose, management needs to track
its market share. He also stated that market share can be measured in 3 ways:
(1) overall market share (2) served market share (3) relative market share.
According to him overall market share is the company’s sales expressed as a
percentage of total market sales. Relative market share can be expressed as
market share in relation to its largest competitor. A relative market share
over 100 percent indicates a market leader.
According to
Cravens and Piercy (2003) relative market share is measured by comparing the
share of the firm against that of the competitor with the highest market share
in the segment.
5.4 Threats
Competitor
analysis is an organized approach for evaluating the strengths and weaknesses
of current or potential competitors’ marketing strategies (Perreault, McCarthy,
1996). They also stated competitive rivals as a firm’s closest competitors.
According to
Farese, Kimbrell, Woloszyk analyzing competition means listing all the
competitors in trading area along with their type of products, prices,
locations, general quality of products and their strengths and
weaknesses. Determining competitors’ sales volume and how they promote and sell
the products. Showing how the firm’s business will be superior to the
competitor based on these factors.B AGozzi, Rosa Kirti, Chelly, Coronel (1998)
stated that analysis of the competition is as important as study of the
consumer. The goal is to meet customer needs with a product or service that
achieves a differential advantage over the competitor. Cravens and Piercy
(2003) stated that competitor analysis is conducted for farms that compete
directly with each other (e.g. Nike & Reebok) and other companies that
management may consider important in strategy analysis (for example, potential
market entrants). He proposed two major aspects of competitor analysis: (1)
preparing the descriptive profile for each competitor and (2) evaluating the
competitors’ strengths and weaknesses. Kotler (2003) stated that competitors
are companies that satisfy the same customer need. The market concept of
competition reveals a broader set of actual and potential competitors. He also
added that once a company identifies its primary competitors, it must ascertain
their characteristics, specifically, their strategies, objectives, strengths
and weaknesses, and reaction pattern. Rothschild (1979) suggested following
questions to ask about a competitor who is the competitor now and who will it
be in the future? What are the key competitor’s strategies, objectives and
goals? How important is a specific market to the competitors and are they
committed enough to continue to invest? What unique strengths do the
competitors have? Do they have any weaknesses that make them vulnerable? What
changes are likely in the competitors’ future strategies? What are the
implications of competitors’ strategies on the market, the industry and one’s
own company? Following Rothchild’s (1979) advice J. Baker (2000) stated that in
an ideal world one would seek to document competitive firms in as much detail
as possible.
According to
West (1999) a typical competitor information profile will cover ownership and
organizational structure; financial history, financial resources, key decision
makers and their track records, staff resources, production resources and
locations, product lines and portfolios, patents, licenses and other unique
assets; markets and segment serviced; distribution channel used; export
activity and country supplied; sales and marketing activities. He also stated
that the depth and quality of information available varies considerably from
market sector to market sector and from country to country.
Kotler (2003)
stated, a company needed to gather information on each competitor’s strengths
and weaknesses. According to the Arthur D. little (1974) a company will occupy
one of six competitive positions in the target market.
- Dominant: This firm controls the behavior of other
competitors and has a wide choice of strategic options.
- Strong: This firm can take independent action without
endangering its long-term position and can maintain its long-term position
regardless of competitors’ actions.
- Favorable: this firm has an exploitable strength and
a more-than- average opportunity to improve its position.
- Tenable: This farm is performing at a sufficiently
satisfactory level to warrant continuing in business, but it exists at the
sufferance of the dominant company and has a lessthan-average opportunity
to improve its position.
- Weak: this firm has unsatisfactory performance, but
an opportunity exists for improvement. The firm must change or else exit.
- Nonviable: this firm has unsatisfactory performance
and no opportunity for improvement. Kotler (2003) supporting the Arthur D.
Little (1974) assessment stated that this assessment helped one company
decide whom to attack in the programmable controls market.
Chapter
Six
Suggestions and Conclusion
6.1 Suggestions
Companies are constantly trying to find ways to improve
performance and warehouse operations is area where supply chain managers can
focus to gain maximum efficiency for minimum cost. To get the most out of the operation,
a number of best practices can be adopted to improve productivity and overall
customer satisfaction. Although best practices vary from industry to industry
and by the products shipped there is a number
of best practices that can be applied to most companies.
When considering the level of effort involved in
warehouse operations, the greatest expenditure of effort is in the picking
process. To gain efficiencies in picking the labor time to pick orders needs to
be reduced and this can achieved in a number of ways. Companies with the most
efficient warehouses have the most frequently picked items closest to the
shipping areas to minimize picking time. These companies achieve their
competitive advantage by constantly reviewing their sales data to ensure that
the items are stored close to the shipping area are still the most frequently
picked.
Warehouse layout is also important in achieve greater
efficiencies. Minimizing travel time between picking locations can greatly
improve productivity. However, to achieve this increase in efficiency,
companies must develop processes to regularly monitor picking travel times and
storage locations.
Warehouse operations that still use hard copy pick
tickets find that it is not very efficient and prone to human errors. To combat
this and to maximize efficiency, world class warehouse operations had adopted
technology that is some of today’s most advanced systems. In addition to
hand-held RF readers and printers, companies are introducing pick-to-light and
voice recognition technology.
In a pick-to-light system, an operator will scan a
bar-coded label attached to a box. A digital display located in front of the
pick bin will inform the operator of the item and quantity that they need to
pick. Companies are typically using pick-to-light systems for their top 5 to
20% selling products. By introducing this system companies can gain significant
efficiencies as it is totally paperless and eliminates the errors caused by
pick tickets.
Voice picking systems inform the operator of pick
instructions through a headset. The pick instructions are sent via RF from the
company’s ERP or order management software. The system allows operators to
perform pick operations without looking at a computer screen or to deal with
paper pick tickets. Many world class warehouse operations have adopted voice
picking to complement the pick-to-light systems in place for their fast moving
products.
Although many companies will not be able to afford new
technologies for picking, there are a number of best practices that can be
adopted to improve efficiency and reduce cost.
6.2 Conclusion:
Warehousing clearly has a critical part to play, in all
aspects of supply chain management. It also needs to be involved in the
strategic aspects of a business and this will involve being aware of the
development of the business in terms of the future production, product,
suppliers, customers, and all the associated product volumes and throughputs.
Each and everyday new technology is being evolved, so in
warehousing with the help of these world class technological innovations, we
can make it more technically competent and innovative; thereby increasing the
efficiency of the business operations.
Bibliography:
a)
Dr J. P. Saxena;
Vikas Publishing House Pvt Ltd, India; Warehouse management and inventory
control, 3rd Print
b)
Emmett, Stuart; Excellence
in Warehouse management
c)
K. S. Mohan;
Macmillan India Limited; Stores Management, 2nd Edition
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