Storage Systems

Prof P.P.Sengupta
Introduction to Storage Systems

• Purpose of Storage Systems:

• Storage systems play a crucial role in materials management by providing a
structured and efficient way to store, organize, and retrieve materials and
products.
• Storage Systems provide businesses with a convenient place to store
inventory, equipment, and other goods that are not needed on a regular
basis. This allows businesses to free up space in their warehouses or retail
locations, and to keep excess goods in a safe and secure location.

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Types of Storage Systems

• Common Types:
• Shelving systems
• Rack systems
• Automated Storage and Retrieval Systems (AS/RS)
• Vertical Lift Modules (VLMs)

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Shelving Systems:

• A shelf is a flat horizontal surface used for storing, organizing, and displaying.
• Open Shelving: These are simple shelves without walls or doors, providing easy access to materials. Common in
retail and small parts storage.
• Closed Shelving: Closed shelves have doors or curtains to protect materials from dust, moisture, or unauthorized
access. They are used in environments where material protection is crucial.
• Mobile Shelving: Mobile shelving units can be moved on tracks, maximizing space utilization and flexibility.
• Cantilever Shelving: These shelves have arms that extend outward, making them suitable for storing long and
bulky items like pipes or lumber.
• Organization: Shelving systems can be organized in several ways:

• Bin Shelving: Using bins or containers on shelves helps keep small parts organized and easily retrievable.
• Library Shelving: These shelves are often used for books, documents, or archive storage, optimizing space in libraries and offices.
• Gravity Flow Shelving: Designed for FIFO inventory management, this system uses inclined shelves with rollers, allowing items to
flow forward as older items are removed.

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Shelving System

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Rack Systems:

• A rack is a storage device that consists of multiple shelves or pallets stacked on top of one another, supported by
steel or aluminum poles or beams. They are designed to maximize vertical storage space and efficiently store heavy
or bulky items. The Racks are typically broader and deeper than shelves and can hold more weight without sagging or
bending. Racks are ideal for use in industrial and commercial settings, such as warehouses, factories, logistics centers,
or storehouses, where heavy and bulky items need a stable, high-capacity storage solution
• Types of Rack Systems:
• Selective Racking: These racks provide direct access to every pallet or item, making them ideal for situations where
products have high turnover rates or varying SKUs.
• Drive-In/Drive-Through Racking: These systems allow forklifts to drive directly into the rack, maximizing storage
space, but reducing selectivity.
• Cantilever Racking: Designed for the storage of long, bulky items such as pipes, lumber, or metal sheets.
• Push-Back Racking: These systems use inclined carts that slide items backward when new items are added, ensuring
FIFO inventory rotation.
• Pallet Flow Racking: Utilizes gravity rollers or wheels to allow pallets to flow forward, making it suitable for high-
density storage and FIFO rotation.

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Rack System

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Automated Storage and Retrieval System
(AS/RS)
• Definition: An Automated Storage and Retrieval System (AS/RS) is a
sophisticated automated system designed for the efficient and
accurate storage, retrieval, and management of materials and
products within a warehouse or distribution center.
• Key Components: AS/RS typically includes automated cranes or
robots, storage racks or shelving, conveyor systems, and
computerized control software.

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Automated Storage and Retrieval Systems (AS/RS):

• AS/RS are sophisticated storage systems that combine automation and computer control to manage
materials efficiently. Here's a detailed explanation:
• How AS/RS Works:
• Automated Cranes: AS/RS systems typically use automated cranes or robotic systems to transport items within
the storage system.
• Computer Control: These systems are controlled by computer software that manages inventory, tracks item
locations, and directs the movement of materials.
• High-Density Storage: AS/RS systems are known for their ability to store materials densely, making them
suitable for environments where space is limited.
• Advantages of AS/RS:
• High Efficiency: AS/RS systems can retrieve and store items quickly and accurately, reducing the need for
manual labor.
• Space Optimization: They make efficient use of vertical space, allowing for more storage in a smaller footprint.
• Inventory Control: AS/RS systems provide real-time inventory tracking and traceability, reducing the risk of
stockouts and overstocking.

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Applications of AS/RS:

• Warehousing and Distribution: AS/RS systems are commonly used in

warehousing and distribution centers to manage a wide range of
products efficiently.
• Manufacturing: Manufacturers use AS/RS to store raw materials, work-
in-progress, and finished goods, streamlining production processes.
• Pharmaceuticals and Healthcare: AS/RS is used for storing
pharmaceuticals, medical devices, and healthcare supplies with
stringent inventory control requirements.
• E-commerce and Retail: E-commerce fulfillment centers rely on AS/RS
for rapid and accurate order fulfillment.
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AS/RS System

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Vertical Lift Modules (VLMs):

• Definition: Vertical Lift Modules (VLMs) are automated storage and

retrieval systems designed for high-density storage of small to
medium-sized items in a vertical structure. They consist of vertically
arranged trays or bins that are automatically retrieved and delivered
to an access point, often operated by an integrated control system.
• Purpose: VLMs are used to optimize space utilization, increase storage
efficiency, and enhance order picking accuracy in various industries.

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Vertical Lift Module

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How VLMs Work:

• Storage Structure: A typical VLM consists of a tall, narrow vertical column

with multiple trays or bins arranged inside. The trays are mounted on a
chain or belt system and can move both vertically and horizontally within
the column.
• Automated Retrieval: To retrieve an item, the VLM's automated system
brings the required tray to the access point where an operator can access
the item. Items are presented at an ergonomic height for easy picking.
• Inventory Management Software: VLMs are controlled by sophisticated
inventory management software that tracks item locations, manages
inventory levels, and optimizes retrieval routes for maximum efficiency.

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Pallets and Pallet Racking
• Pallets are flat, portable platforms with both a top and bottom deck, designed for the efficient handling and
transportation of goods and materials using forklifts, pallet jacks, or conveyor systems. Pallets provide a
standardized and convenient means of storing and moving items within a warehouse or across the supply
chain.
2. Types of Pallets:
• Wooden Pallets: These are the most common type of pallets and are often used in various industries due to
their cost-effectiveness and durability.
• Plastic Pallets: Plastic pallets offer advantages such as resistance to moisture, chemicals, and pests. They are
also lightweight and recyclable.
• Metal Pallets: Metal pallets are exceptionally durable and suitable for heavy loads, but they are less common
due to their higher cost.
• Cardboard Pallets: These are lightweight and designed for one-time or limited use, commonly seen in the
shipping of export goods.
• Hybrid Pallets: Some pallets combine materials, such as wood and plastic, to take advantage of the strengths
of both materials.

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Pallet Racking

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Advantages of Pallets:

• Standardization: Pallets come in standard sizes, such as the 48x40-

inch pallet, which helps in optimizing storage and transportation
space.
• Ease of Handling: Pallets can be easily moved using forklifts, pallet
jacks, or automated conveyor systems, reducing manual labor and
minimizing the risk of injury.
• Protection and Stacking: Pallets provide a stable and protective base
for products, allowing for safe stacking and storage.

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Applications of Pallets:

• Warehousing: Pallets are used for storing and organizing materials

within warehouses and distribution centers.
• Shipping and Transportation: Palletized goods are easier to load onto
trucks, ships, and airplanes, making them the standard for long-
distance transportation.
• Retail Displays: In retail stores, products can be displayed on pallets
for easy replenishment and attractive product presentation.
• Manufacturing: Pallets are used to move raw materials, work-in-
progress, and finished products within manufacturing facilities.

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Palletization, Unit Load, and Unitization

• Palletization, Unit Load, and Unitization are concepts and practices commonly used in logistics
and material handling to optimize the storage and transportation of goods. Here's an
explanation of each term:
• Definition: Palletization refers to the process of arranging and securing products or goods on
a pallet, which is a flat, portable platform with both a top and bottom deck designed for easy
handling with forklifts, pallet jacks, or other material handling equipment.
• Palletization serves several purposes:
• It facilitates the efficient handling and transportation of goods within a warehouse, distribution center, or
during shipping.
• It helps protect products by keeping them off the ground and reducing the risk of damage.
• It allows for the consolidation of multiple items into a single, stable unit, which simplifies inventory
management.
• Benefits: Palletization offers benefits such as reduced labor costs, increased safety, improved
space utilization, and faster loading and unloading of goods.

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Palletization, Unit Load, and Unitization
• Unit Load: A unit load refers to a single, consolidated load of goods or products that are combined and secured together to form
a larger, manageable unit. Unit loads are typically placed on pallets, but they can also be bundled using strapping, stretch wrap, or
other means.
• Purpose: The primary purpose of unit loads is to simplify material handling, storage, and transportation. By consolidating multiple
items into one unit, it streamlines processes and reduces handling efforts.
• Examples: Unit loads can include a stack of boxes, bags, containers, or any combination of goods that are secured together for
easier handling and storage.
• Unitization:: Unitization is the broader concept that encompasses both palletization and the formation of unit loads. It involves
organizing and consolidating multiple items or products into a single, cohesive unit for the purpose of efficient storage, handling,
and transportation.
• Purpose: Unitization aims to optimize material flow throughout the supply chain. By creating uniform units, it reduces the
complexity of inventory management and improves the efficiency of processes such as order picking, packing, and shipping.
• Applications: Unitization is used across various industries, including manufacturing, warehousing, distribution, and retail. It can
involve different methods, from placing products on pallets to bundling products with strapping or shrink wrap.
• In summary, palletization involves arranging goods on pallets, while unit loads are consolidated loads of goods, often placed on
pallets. Unitization encompasses both of these practices and involves creating cohesive units for the purpose of simplifying
material handling, storage, and transportation processes.

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Space Utilization and Optimization
• Space Utilization refers to the efficient use of available space within a
facility, warehouse, or storage area to store goods, materials, or
assets. It involves maximizing storage capacity while minimizing
wasted or unused space.
• Space Optimization goes a step further by actively enhancing space
utilization to achieve the best possible results in terms of capacity,
accessibility, and efficiency.

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Importance of Space Utilization and Optimization:

• Efficient space utilization and optimization are critical for various

reasons:
• Cost Savings: Maximizing space can lead to reduced facility costs, as
less space is needed to store the same amount of inventory or assets.
• Improved Efficiency: Optimized spaces allow for easier access to stored
items, reducing retrieval times and labor costs.
• Inventory Control: Effective space utilization helps in organizing and
tracking inventory, reducing the risk of overstocking or stockouts.
• Safety and Ergonomics: Well-organized spaces are safer for employees
and reduce the risk of accidents or injuries.
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Strategies for Space Utilization and Optimization:

• Vertical Storage: Utilize vertical space by using tall shelves, mezzanines, or racks.
For example, in a warehouse, high-bay racking systems maximize vertical storage
space.
• Pallet Racking Systems: Implement pallet racking with different configurations like
selective racking, drive-in racking, or push-back racking, depending on the type of
goods and turnover rates. For example, a distribution center may use selective
racking for fast-moving products and drive-in racking for slow-moving items.
• Use of Automated Systems: Implement Automated Storage and Retrieval Systems
(AS/RS) or Vertical Lift Modules (VLMs) to optimize space by efficiently storing and
retrieving items in vertical structures.

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Strategies for Space Utilization and Optimization:

• Dynamic Slotting: Continuously analyze inventory data to reorganize items based on demand.
High-demand items should be placed in easily accessible locations.

• Inventory Management Software: Implement software systems that provide real-time visibility
into inventory levels and locations, allowing for better space planning and utilization.

• Cross-Docking: In logistics, cross-docking involves transferring goods directly from inbound to

outbound transportation without storage. This reduces the need for storage space.

• Just-in-Time (JIT) Inventory: Implement JIT principles to minimize the need for excess storage
space by receiving materials or goods only as needed for production or order fulfillment.

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Examples of Space Utilization and
Optimization
• Retail Store: A retail store can optimize space by using efficient shelf layouts, ensuring that
frequently purchased items are at eye level, and using endcap displays to promote products.
• E-commerce Warehouse: An e-commerce warehouse can use vertical racks and automated
conveyor systems to maximize storage density and ensure efficient order picking.
• Manufacturing Plant: A manufacturing plant can implement JIT inventory practices to reduce the
need for large storage areas and streamline production processes.
• Office Space: In an office setting, space optimization can involve open office layouts, flexible
workstations, and hot-desking to make the most of available space while promoting collaboration.
• Hospital Operating Room: Hospitals optimize operating room space by ensuring that surgical
equipment and supplies are efficiently organized and accessible to surgical teams.
• Agricultural Storage: Farms optimize storage space for crops by using vertical silos or climate-
controlled storage facilities to prevent spoilage.

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Challenges in Space Utilization and Optimization

• Balancing Accessibility: While optimizing space, it's crucial to maintain accessibility

to stored items. Over-optimization can lead to difficulties in retrieving items quickly.

• Inventory Accuracy: Optimized space requires accurate inventory tracking and

management to avoid misplacing or losing items.

• Cost Considerations: The implementation of space optimization strategies may

require an initial investment in equipment or software.

• Scalability: As the business grows, space optimization strategies may need to be

adjusted or expanded to accommodate increased storage needs.

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Case Study 1: Automotive Industry Warehouse Optimization

• An automotive manufacturing company was facing challenges with its warehouse operations. The company
produced a wide range of vehicle components, from small parts like nuts and bolts to larger items like
engines and transmissions. Their existing warehouse layout was inefficient, resulting in long lead times, high
labor costs, and frequent order fulfillment errors.
• Solution:
• The company decided to optimize its warehouse operations using a combination of strategies:
• 1. Implementing Vertical Lift Modules (VLMs):
• The company installed Vertical Lift Modules (VLMs) to maximize vertical storage space.
• VLMs provided automated, high-density storage for small to medium-sized parts, reducing the floor space needed for storage.
• 2. Redesigning Layout with Pallet Racking:
• The larger components were stored using a selective pallet racking system, allowing for efficient access and storage of bulkier
items.
• This improved the accessibility of items with varying sizes and weights.
• 3. Inventory Management Software:
• Integrated inventory management software tracked item locations, demand patterns, and order volumes.
• The software optimized slotting for frequently picked items, reducing travel time for warehouse staff.

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Case Study 1: Automotive Industry
Warehouse Optimization
• Results:
• Space Utilization: The company maximized its available space by using VLMs and a tailored pallet racking
system, reducing the need for costly warehouse expansion.
• Efficiency Gains: Order picking and retrieval times were reduced, leading to shorter lead times for
components and a decrease in labor costs.
• Reduced Errors: Accurate inventory tracking and optimized slotting led to a substantial decrease in order
fulfillment errors.
• Cost Savings: The combined effect of reduced labor costs and efficient space utilization resulted in cost
savings, which translated to improved profitability.
• Key Takeaways:
• This case study highlights the importance of optimizing warehouse operations in the automotive industry
through the use of automated storage solutions, layout redesign, and advanced inventory management
software. It demonstrates how efficient space utilization can lead to cost savings, improved efficiency, and
better customer satisfaction.

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Case Study 2: Pharmaceutical Storage Solutions

• A pharmaceutical company with a wide range of medications, vaccines, and medical

supplies required a state-of-the-art storage solution for its distribution center. They faced
challenges related to the stringent storage requirements for pharmaceutical products,
including temperature control, security, and inventory tracking.
• Solution:
• The pharmaceutical company opted for a comprehensive storage solution:
• 1. Temperature-Controlled Warehousing:
• The company invested in temperature-controlled storage facilities to ensure the safe storage of sensitive
pharmaceuticals, including refrigeration units for vaccines and temperature monitoring systems.
• This compliance with regulatory standards ensured the quality and safety of stored medications.
• 2. Automated Storage and Retrieval System (AS/RS):
• An AS/RS was implemented to provide high-density storage while maintaining stringent inventory control.
• The AS/RS utilized automated cranes to retrieve and store products efficiently, minimizing the risk of human error.

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Case Study 2: Pharmaceutical Storage
Solutions
• 3. Compliance with Regulatory Standards:
• The company strictly adhered to pharmaceutical storage and handling
regulations, ensuring that the storage solution met Good Distribution
Practices (GDP) and Good Storage Practices (GSP) guidelines.
• 4. Security Measures:
• Advanced security measures, including access control systems and
surveillance, were put in place to protect valuable pharmaceutical inventory
from theft or tampering.

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Case Study 2: Pharmaceutical Storage
Solutions
• Results:
• The implementation of pharmaceutical storage solutions led to several key outcomes:
• Product Integrity: Stringent temperature control and compliance with regulatory standards ensured the
integrity of pharmaceutical products.
• Enhanced Efficiency: The AS/RS improved the efficiency of order fulfillment, reducing lead times and
increasing order accuracy.
• Inventory Control: Real-time tracking and monitoring of inventory reduced the risk of stockouts or
overstocking.
• Security: Robust security measures maintained the safety and security of valuable pharmaceutical inventory.
• Key Takeaways:
• This case study emphasizes the critical nature of storage solutions in the pharmaceutical industry. It highlights
the importance of temperature control, regulatory compliance, advanced security, and automation in
maintaining the quality and integrity of pharmaceutical products. Proper storage solutions are essential for
ensuring patient safety and regulatory compliance in the pharmaceutical sector.

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