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2020 Asia Conference on Geological Research and Environmental Technology IOP Publishing
IOP Conf. Series: Earth and Environmental Science 632 (2021) 022055 doi:10.1088/1755-1315/632/2/022055

A Research on Warehouse Operation Optimization of

Logistics Center

Xiwen Feng, Yu Zhou* and Mengying Gao

School of College of Energy and Mining Engineering, State Key Laboratory of
Mining Disaster Prevention and Control Cofounded by Shandong Province and the
Ministry of Science and Technology, National Demonstration Center for Experimental
Mining Engineering Education, Shandong University of Science and Technology,
Qingdao 266590, China

*Corresponding author: yuzhou@sdust.edu.cn

Abstract. This article through to A logistics center warehouse on the production line
are analyzed in the value stream, together with the present situation of the company,
mapping of the value stream status quo of the existing production lines, using the
picture, find out the current value of the production mode in operation, then put
forward to reduce or eliminate non-value added link, map out the improved value
stream map, and several Suggestions for improvement are put forward.

1. Introduction
A logistics center is a Roll paper logistics center with a total construction area of 5000m2, which
consists of four parts: receiving area, storage area, sorting area and temporary delivery area. The
warehousing and sorting operations of the logistics center include: unloading, palletizing, warehousing,
outbound, unpacking and replenishment, sorting, coding, packaging, code plate, handling and loading.
With the continuous growth of market demand, orders are gradually increasing. Carry out value stream
analysis on the warehouse department of the logistics center to find out the waste, reduce inventory,
improve the utilization rate of equipment and working hours, and realize efficient operation.
Value stream map analysis technology is one of the six basic tools to implement lean production, it
is through mapping the value stream, to the point of view of lean production to analyze the process of
production material and information flow, the basic principles of the lean thinking to dissolve into
improving implementation process, to help enterprises to carry out systematic, continued to improve,
the improvement can not only eliminate waste, and to eliminate the root causes of waste, make it not
come back, before import the lean production concept and method, for the entire product value stream
map analysis, provide the basis for subsequent lean improvement and direction.

2. Logistics centre warehouse operation status and value stream analysis

2.1. Warehouse operation status of logistics centre

The warehousing and sorting operations of the logistics centre include: unloading, palletizing,
warehousing, outbound, unpacking and replenishment, sorting, coding, packaging, code plate,

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2020 Asia Conference on Geological Research and Environmental Technology IOP Publishing
IOP Conf. Series: Earth and Environmental Science 632 (2021) 022055 doi:10.1088/1755-1315/632/2/022055

handling and loading. In August 2019, the upstream industry will have an average of 2,032 pieces of
clothing in transit every day, with an average transit time of 36.4 hours.
The marketing centre transmits the order data to the automated warehouse management system of
the logistics centre through the marketing management information system (V6) four times per day at
8:40, 9:10, 9:40, and 12:30. The logistics centre transmits information to the delivery, sorting, coding,
loading and other logistics processes through the automated warehouse management system.
Marketing centre orders from industrial enterprises twice a year, once every half a year. Retail
customers place orders once a week.

2.2. Value stream analysis

2.2.1. Current value stream map. According to the above information, draw the warehouse operation
status value stream map is shown in figure 1, the value of the data in the graph analysis, calculate the
production assembly time value stream in the whole logistics centre under the premise of normal
operation, products in the library time was 19.69 minutes, the transfer of the time in the library
637.62h, the link is part of non-value added.

Order a week

4 order data transfers

at 8:40,9:10, 9:40 and
12:30 minutes per day

Large
inventories

c/T=2.6s C/T=3.6 C/T=210 C/T=15 c/T=15 C/T=20 c/T=0.05 c/T=15 C/T=660 C/T=60 C/T=180
Wt=6h Wt=6h Wt=6h Wt=8h Wt=8h Wt=8h Wt=8h Wh=8h Wt=8h Wh=8h Wh=8h

Figure 1. Current value stream map.

2.2.2. Value stream map analysis. Taking August 1, 2019 (solstice, August 31) as the time node, the
value stream analysis was carried out on the warehouse department of the logistics centre to find out
the existing waste and preliminarily identify the contents that can be improved.
(1) Waste of waiting: in the survey, the waiting found are: personnel waiting, vehicle waiting,
loading waiting, etc.
Vehicle waiting: logistics centre for warehousing storage capacity of 800 pieces per hour, with
effective operation time 6 hours a day (not including 1 hour for lunch and breaks) calculation, in
theory can be put in storage, 4800 a day, if the arrival of the goods quantity more than 4800 a day, you
will need to work longer hours and even make cars wait until the next day, discharge caused by
vehicle waiting.
Personnel waiting: if the quantity of goods is too small, or even no goods arrive, the personnel will
wait. The main reason for these two kinds of waiting is that the arrival rhythm of industrial vehicles is
not coordinated with the warehousing capacity of the warehouse, which is mainly related to the
storage capacity of the warehouse, the procurement and supply department's procurement and supply
plan, the industrial delivery rhythm and the vehicle in transit.

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2020 Asia Conference on Geological Research and Environmental Technology IOP Publishing
IOP Conf. Series: Earth and Environmental Science 632 (2021) 022055 doi:10.1088/1755-1315/632/2/022055

Loading waiting: due to the production delay of the sorting line, the loading waiting of the middle
transfer vehicle is caused. The main reasons are the delay of sorting data transmission and the
temporary shutdown of the equipment.
(2) Inventory waste: first, the sorting line online inventory is large, resulting in inventory waste.
Second, due to the shortage of logistics operation space, the warehouse capacity has been unable to
meet the needs of increasing sales volume and increasing varieties of operations.
(3) Waste of movement: in the production site, 7S and standardized operations are not strictly
followed. The main reason is that the operators make it convenient to place pallets nearby, or the
products are not removed from the warehouse in time, resulting in blocked channels and messy scene.
(4) Waste of bad repair: due to the temporary failure of equipment, the sorting machine is shut
down for maintenance, the sorting task is delayed, and the next process is waiting. According to the
survey, in August, line 1 needed to be shut down for repair for a total of 2.5 hours, and line 3 needed
to be shut down for repair for 6.7 hours.
(5) Waste of handling: the first floor of the warehouse area of the logistics centre has three layers of
beam pallet shelves, 876 storage Spaces and a storage capacity of 5256 boxes. The second floor is a
flat warehouse with 364 storage Spaces and a storage capacity of 2,184 boxes. A layer of shelf storage
to the first floor need to use manual carrier, more than 2 shelves need to use manual carrier plus
electric forklift, need to use hand truck and the elevator to the second floor warehouse transport.
Through research, put in storage to the first floor of one to three layer shelf time for 58 seconds to
138 seconds, to the second floor is about 120 seconds to 250 seconds, that is to say, the time required
for storage to the second floor for the 2 times the first floor. Therefore, in order to reduce waste, the
frequency of large volumes of paper should be put in the first floor as far as possible, if a certain
product regulation storage volume is greater than the first floor fixed storage space, and have to move
to the second floor, then cause the waste of handling.
(6) Management waste: a management system has been established, but with the continuous
improvement of work requirements, the management system still needs to be further improved. If the
management system does not adapt to the current work, management waste will result.

2.2.3. Future value stream map. After optimizing the warehouse operation flow of the logistics center,
the future value flow chart of the warehouse operation flow can be drawn, as shown in figure 2.

Figure 2. Future value stream map.

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2020 Asia Conference on Geological Research and Environmental Technology IOP Publishing
IOP Conf. Series: Earth and Environmental Science 632 (2021) 022055 doi:10.1088/1755-1315/632/2/022055

The status chart is just an ideal state, a goal, whether the implementation still needs the cooperation
of all departments. In order to achieve this state, the following measures are recommended.

3. Optimized design of warehouse operation flow based on value flow chart

(1) Add department coordination and post coordination to smooth the information flow and reduce the
waste of waiting and bad repair.
Establish information sharing mechanism between logistics centre and marketing centre, marketing
centre and roll paper production industry. Take the initiative to negotiate with the industry to make an
appointment for delivery, reduce the occurrence of vehicle waiting, goods waiting and personnel
waiting, improve inventory turnover and reduce inventory.
Precise sorting and dispatching can be achieved through cooperation. Warehouse keeper should
master the sorting progress and operation status of each sorting line before sorting and dispatching,
accurately assign tasks, and make the completion time of each sorting line approximately similar.
Strengthen the business training of delivery personnel. Through the training, improve the ability of
analyzing, applying and summarizing the information of the upper and lower processes, continuously
improve the connection level of the paper out of the warehouse, and avoid the shutdown phenomenon
caused by the shortage of goods in the sorting line.
(2) Scientific management of the site, reduce inventory backlog, reduce useless handling and
movement of waste, so as to smooth the flow of logistics
We will do a good job in process control. Logistics distribution centre team leader to carry out
regular on-site inspection, the application of red card operations, board management, visual
management and fixed-point photography and other lean management measures, standardized daily
inspection methods, carry out on-site management compliance activities, continue to promote on-site
management.
According to the change of sales, optimize the storage space setting of the first and second floor of
the warehouse dynamically, further improve the efficiency of warehousing, so as to make the logistics
smooth.
To implement the requirements of the standardization construction of industrial enterprises,
organize the publicity and implementation of the new version of logistics standardization, formulate
the standard operating procedures (SOP) for each business link, strictly require the staff to implement
the operation standards, and standardize the operation behavior of the staff.
(3) Comprehensively combed the post functions, optimized the operation process and personnel
allocation, realized cost reduction and efficiency increase, and operated efficiently.
The responsibilities of the comprehensive shift warehouse keeper will be divided into other
positions. After the functions are integrated, the post will be canceled, which can reduce one
warehouse keeper;
Carry out the transshipment outsourcing, which can reduce the number of drivers of the central
transfer vehicle by 4.

4. Conclusion
Taking the production line of a logistics center storage department as the research object, the
unreasonable operation links were found by using value stream map method. At the same time,
combined with value stream analysis, the warehouse operation flow is optimized and improved, which
has obvious effects on inventory cost and storage efficiency.
As a case study, this paper can provide the following reference for the warehouse operation process
of the logistics centre:
1) Use value stream to optimize the design of warehouse operation process, reduce non-value-
added links and reduce inventory cost.
2) Based on value stream analysis, put forward reasonable Suggestions to reduce storage operation
time and improve storage efficiency.

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2020 Asia Conference on Geological Research and Environmental Technology IOP Publishing
IOP Conf. Series: Earth and Environmental Science 632 (2021) 022055 doi:10.1088/1755-1315/632/2/022055

3) Using kanban theory, strengthen information sharing of logistics centre and visual management
of operation site personnel, improve storage efficiency and production flexibility.

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