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World-Class
Warehousing and
Material Handling
00-Frazelle_FM.indd 1 29/01/16 4:32 PM

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World-Class
Warehousing
and Material
Handling
SECOND EDITION
Edward H. Frazelle, PhD
New York Chicago San Francisco Athens London

Madrid Mexico City Milan New Delhi
Singapore Sydney Toronto

Copyright © 2016 by Edward H. Frazelle, PhD, and RightChain(TM) Incorporated. All rights
reserved. Printed in the United States of America. Except as permitted under the United States
Copyright Act of 1976, no part of this publication may be reproduced or distributed in any
form or by any means, or stored in a database or retrieval system, without the prior written
permission of the publisher.
1 2 3 4 5 6 7 8 9 0 DOC/DOC 1 2 1 0 9 8 7 6
ISBN 978-0-07-184282-2
MHID 0-07-184282-9
e-ISBN 978-0-07-184283-9
e-MHID 0-07-184283-7
Library of Congress Cataloging-in-Publication Data
Names: Frazelle, Edward.

Title: World-class warehousing and material handling / by Edward Frazelle.
Description: 2 Edition. | New York : McGraw-Hill Education, 2015. | Revised
edition of the author’s World-class warehousing and material handling,
2002.
Identifiers: LCCN 2015032909 | ISBN 9780071842822 (alk. paper) | ISBN
0071842829 (alk. paper)
Subjects: LCSH: Warehouses—Management. | Materials handling.
Classification: LCC HF5485 .F69 2015 | DDC 658.7/85—dc23 LC record available at
http://lccn.loc.gov/2015032909
RightHouse™, RightViews™, RightScores™, RightIns™, RightPuts™, RightStore™, RightPick™,

RightSlot™, RightShip™, RightPaths™, and RightComms™ and related terms are trademarks of
RightChain™ Incorporated.
McGraw-Hill Education books are available at special quantity discounts to use as premiums
and sales promotions or for use in corporate training programs. To contact a representative,
please visit the Contact Us pages at www.mhprofessional.com.

This book is dedicated to my Lord, Savior, and Best Friend Jesus Christ, Who
blessed me with the experiences and abilities to share these learnings; to my
beautiful wife Pat, who has patiently allowed me to have these experiences and
encouraged me in them; and to Kelly, Andrew, and Travis.


CONTENTS
Acknowledgments ix
CHAPTER 1
Introduction to Warehousing 1
CHAPTER 2
Warehouse Activity Profiling, Data Mining, and Pattern Recognition 21
CHAPTER 3
Warehouse Performance, Cost, and Value Measures 75
CHAPTER 4
World-Class Receiving and Put-away 109
CHAPTER 5
Pallets: Pallet Storage and Handling Systems 135
CHAPTER 6
Case Picking Systems 181
CHAPTER 7
Broken Case Picking Systems 215
vii

viii Contents
CHAPTER 8
Order Picking and Shipping 257
CHAPTER 9
Warehouse Layout Optimization 291
CHAPTER 10
Warehouse Communication Systems 315
Index345

ACKNOWLEDGEMENTS
Mr. Jun Suzuki is the patriarch of Japanese logistics. We met during my first
logistics study tour in Japan in 1988. He has been my logistics mentor ever
since. Many of the pictures of Japanese and European warehousing opera-
tions come from his extensive photo gallery of warehousing operations.
My wife Pat has been my writing partner from the time I wrote my
master’s thesis. She is brilliantly gifted in editing for an audience, and is a
God-send of a life and writing partner.
My son Andrew is currently finishing his doctorate in Decision Sciences
at Duke University. I think he was also born a linguist, and he implores me
to choose my words carefully. Though humbling, his editing was an invalu-
able contribution to the book. He is a God-send of a thought, research and
analytics partner.
World-Class Warehousing is illustrated with more than one hundred
photos taken inside some of the world’s best warehouse operations. Those
long time clients and study tour partners include American Cancer Society,
Avon, Bertelsmann, BIC, Boots, BP, Caterpillar, Coca-Cola, Ford, Happinet,
Honda, L.L. Bean, KAO, Kirin, K-Mart, Lifeway, Marks & Spencer, Metro,
Mitsubishi, Netto, Nike, NTT, NuSkin, Payless, Otto, Oxxo, Scroll, Shiseido,
Sony, Suntory, Swagelok, Rio Tinto, Rittal, the United States Armed Services,
and Verizon. They have been very accommodating to share their experiences
in warehousing and logistics.
The RightChain™ principals around the world—Dr. Matt Anderson,
Angel Becerra, Henry Brunekreef, Matsukawa-san, Masaji Nakano, Ricardo
Sojo, and Mary Wong—continually encourage my research, teaching, and
writing.
ix

x Acknowledgements
In our consulting and training, we have been blessed to work with some
of the world’s best and brightest individuals and corporations. They have
encouraged and supported me to no end.
■■ Steve Laky, Rick Glasson and Abbott.

■■ Bill Costa and American Cancer Society.
■■ Steve Spiva, Jack Gross, and Applied Materials.
■■ Jane Houze, Bill Hightower and AT&T.
■■ Roosevelt Tolliver, Jim Lofgren and Avon.
■■ Carliss Graham, Greg Otter, Durwood Knight, Richard
McCrosky, Raylene Morris, Caroline Thompson and BP.
■■ Diane Mullican and Carrier.
■■ Dave Hopkins, Steve Westphal, Kevin Fox, Ted Bozarth, Brett
Frankenburg and Coca-Cola Consolidated.
■■ John Sibilia, Josue Munoz and Colgate.
■■ Lynn Barratt, Steve Erbe, Carmen Guerero, Karen Hall, Tom
Nabie, Bruce Terry, Hal Welsh and Disney.
■■ Dan Krouse and Hallmark.
■■ Sean Garrett, Dave Eidam and Hamilton Sunstrand.
■■ Jim Roach, Chuck Hamilton, Bruce Smith, Juan Streeter, Kathy
Howell and Honda.
■■ Tammy Ryan, Jim Sylvester and H.P. Hood.
■■ Dave Wilford and Invitrogen.
■■ Debbie Postle and LAM Research.
■■ Dave Lavesque, Jim Pierce, Tom Galanti and LiDestri.
■■ Mike Harry and Lifeway.
■■ Susan McLain and LL Bean.
■■ Carlos, Rodrigo, Ignacio and Mas X Menos (now Wal-Mart
Central America).

Acknowledgements xi
■■ Lou Arace, Dave Burton and Nutrisystem.

■■ Jorge, Carlos, Miguel, Nelly, Sergio, Rafael, Bernie, Eduardo,
Paulina, and Oxxo.
■■ Daryl Pavelqua, Mary Boatright, James Wichern and Payless.
■■ Danny DiPerna, Rob Grossman, Kathy Godin, Ed Delmastro, Bill
Kelly, Andy Minor and Pratt & Whitney.
■■ Mark Ward, Frank Encinas, and Raytheon.
■■ Scott Singer, Russell Hodson and Rio Tinto.
■■ David Phillips and Rittal.
■■ Sean Stucker, Bill Burgess, Greg Flack, Greg Olson and Schwan’s
Food Company.
■■ Eric Eber, Mike Graska, Matt LoPicolo and Swagelok.
■■ Rex Taylor and Taylor Logistics.
■■ Sam Campagna, Jackie DeMatos, Jan Salewski, Scott Singer and
United Technologies.
■■ Matt Anderson, Ouris Pellegrin and the U.S. Army and
Marine Corps.


World-Class
Warehousing and
Material Handling


CHAPTER ONE
INTRODUCTION TO WAREHOUSING
1.1 Warehousing Through the Years
1.2 Warehousing Fundamentals
1.3 How to Read This Book
I wrote the first edition of World-Class Warehousing in 1995. Back then,

people asked me why I was writing a book on warehousing when the
just-in-time (JIT) movement was aimed at eliminating warehousing.
Today, it’s the lean movement. The question is a legitimate one and one
I ask seminar attendees every time I teach a warehousing seminar. “Why
should we devote our time and energy to studying an activity that every
supply-chain professional and the lean literature is trying to eliminate?”
A better question might be, “In what ways does warehousing add value in
business and in supply chains?” If we can’t come up with good answers,
then writing this book really was a waste of time, and reading it likewise.
As we will see, warehousing plays an indispensable role in business and
supply-chain strategy.
01-Frazelle_ch01.indd 1 29/01/16 1:05 PM

2 World-Class Warehousing and Material Handling
Warehousing in the Supply Chain

I developed the RightChain model in the mid-1990s. The model integrates
and optimizes walks through the five components of supply chain strategy:
customer service, inventory management, supply, transportation, and ware-
housing. Through those eyes, the value of warehousing is demonstrated in
each component clearly visible (Figure 1.1).
Warehousing and Customer Service

Warehousing adds value in customer service, by facilitating high inventory
availability, shorter response times, value-added services, returns, custom-
ization, and consolidation among others.
Fill rate is the portion of a customer’s demand satisfiable from on-hand
inventory. In most cases, a significant investment in safety stock is required
to provide high customer fill rates. That safety stock must be housed some-
where, and that somewhere is typically a warehouse.
Warehouses in close proximity to the customer base and with short
internal cycle times help to reduce response times to customers. We have
one client that provides same-day delivery of critical service parts via a
Figure 1.1 RightChain supply-chain logistics model.
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RightChainTM
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Chapter One Introduction to Warehousing 3
nationwide network of small warehouses with short order cycle times. One
of our financial services clients supports its financial analysts with small
warehouses located in the centers of major financial districts, serving offices
via subway, courier, walking, and bicycles. One of our convenience store
clients is improving product freshness by increasing delivery frequencies to
its 14,000 stores supported by a major increase in the number and capacity
of its warehouses and distribution centers.
Following the mass customization movement, the likelihood that an
order will require customization in some form is increasing exponentially.
The ability to execute the requisite value-added services such as custom
labeling, special packaging, monogramming, kitting, coloring, and pricing is
and will continue to be a competitive supply-chain differentiator. Warehouses
are uniquely equipped with the workforce and equipment to execute these
value-added services. In addition, by holding the noncustomized inventory
and postponing the customization, overall supply chain inventory levels
may be reduced. As the physical facility closest to the customer location, a
warehouse is also a natural place to customize, kit, assemble, or countrify
products in accordance with the principle of postponement—minimizing
overall inventory investments throughout a logistics network by delaying
customization. For example, one of our health and beauty aids clients puts
its shampoo in blank bottles for storage. Once an order is confirmed from
a specific country, the labeling required for that specific country is applied
in line with the picking and shipping process.
One customer service is foundational to our culture’s expectations of
logistics systems but taken for granted is consolidation. For example, if you
order a shirt and a pair of pants from a mail-order company, rarely would
you want the shirt showing up one day in one package and the pants show-
ing up another day in another package. For those items to show up at the
same time in the same package, they most likely need to be housed under
the same roof, that is, in a warehouse.

Returns constitute another customer service facilitated by good ware-

housing practice. Convenient and inexpensive returns for customers yield
higher sales and customer satisfaction ratings. Warehouses and distribution
centers are typically already located in close proximity to the customer base
and have the workforce and material-handling equipment uniquely suited
to handling returns.
Although not directly considered a customer service, in many parts of
the world, physical market presence is an important cultural competitive dif-
ferentiator. Warehouses and distribution centers are well-recognized means
of establishing physical market presence.
Warehousing and Inventory Management

Because warehouses house inventory (or wares), warehousing adds business
and supply-chain value in all the same ways as inventory. Warehouses and
their inventory facilitate production economies of scale, optimize factory
utilization via seasonal inventory builds, and mitigate supply-chain and busi-
ness risk by holding contingency and disaster inventory. Despite all efforts
to reduce setup and changeover costs and time, there will always remain
expensive and time-consuming setups. In those situations, it would be eco-
nomically foolish to produce short runs. When long production runs are
economical, the resulting lot-size inventory must be housed, most effectively
in a warehouse. For example, one of our large food and beverage clients was
running lot sizes 50 percent below optimal, incurring excessive changeover
and production costs as a result. To correct, an additional 150,000 square
feet of warehousing space was required, yielding a significant return on
investment to their business Figure 1.2.
Many corporations have significant peaks and valleys in their demand.
One of our clients, Hallmark Cards, is an extreme example. Most of the
demand for greeting cards falls in the Christmas and Valentines seasons.
If the company’s production capacity was designed for those peaks, its
production capacity would be cost prohibitively underutilized most of the
year. To balance the production and optimize supply-chain costs, Hallmark

Figure 1.2 Coca-Cola’s distribution center near Raleigh, North Carolina, with
expanded warehousing square footage to accommodate larger lot sizes and
an optimal activity density.
produces greeting cards at a fairly balanced pace during the year, resulting
in a large storage requirement for most of the year. This seasonal inventory
is stored in the large warehouse, in Figure 1.3.
The Schwan’s Food Company is another one of our clients. One of its
flagship products is frozen pie. The company is the world’s largest manufac-
turer of frozen pies, most of which are consumed between Thanksgiving and
Christmas. As is the case with Hallmark, to optimize Schwan’s supply-chain
costs, the company must balance production throughout the year and use
third-party frozen warehousing to hold the seasonal buildup in inventory
from January through September.
Contingency and disaster inventory insures against unexpected sit-
uations outside the realm of those covered by traditional safety-stock
inventory. Such situations include natural disasters, labor strikes, and
other abnormal supply-chain disruptions. For example, in our work with
telecommunications and utilities clients, we often plan for contingency and
disaster inventory to maintain service in the increasingly likely event of
hurricanes, floods, and snowstorms.

Figure 1.3 Hallmark Cards’ warehousing complex in Liberty, Missouri. The

facility is sized to accommodate inventory buildups in support of extreme
seasonal peaks.
Warehousing and Sourcing

One of our clients is one of the world’s largest chocolate candy companies.
Of course, the main ingredients are cocoa and sugar. In addition to pro-
duction, those raw material costs also make up most of the total landed
product cost. To help determine the optimal timing of the purchase of sugar
and cocoa, the company maintains advanced proprietary weather-forecast-
ing systems and sophisticated predictors of the future price of sugar and
cocoa. When our client believes that the price is optimal, it may literally

buy boatloads of sugar and cocoa. That sugar and cocoa must be housed
somewhere, and that somewhere is a warehouse.
After raw materials, the next most expensive cost component of the
company’s total landed cost is production. To help keep those costs low, the
company operates with extremely long production runs. Because margins
are high, inventory carrying rates are low, the risk of obsolescence is low
(I have never personally refused a candy bar because of technical or packag-
ing obsolescence), and shelf lives are long, total landed supply-chain costs
are optimized with long production runs. Those long production runs create
large batches of inventory that must be housed somewhere. That somewhere
is a warehouse.
Another means by which companies seek to reduce material cost is
low-cost foreign sourcing. The likelihood of an order entering or departing
the warehouse from/to another country has never been higher. Warehouses
add significant value in the supply chain by facilitating the efficient inbound
and outbound processing of international orders. One example is our client,
Payless Shoes, one of the world’s largest shoe retailers and global importers.
Most of the company’s shoes are imported from China and arrive in the
United States via the Port of Long Beach. Goods arriving there are trans-
loaded into 53-foot containers and trucked to the company’s West Coast
distribution center in Redlands, California, or the company’s East Coast
distribution center near Cincinnati, Ohio. Similar West Coast distribution
center missions are carried out by the massive concentration of distribu-
tion centers in or near Redlands known as the “Inland Empire.” A similar
empire of distribution centers has grown up around the Port of Savannah,
Georgia, where The Home Depot, Ikea, and Pep Boys, among many others,
inject imported products into their East Coast logistics networks (Figures 1.4
through 1.7).
By postponing title transfer, on-site vendor-managed inventories are
another means by which warehousing can add value in business and supply-
chain logistics. Figure 1.8 shows one of our mining client’s maintenance
parts vendor management inventory warehouse locations. The warehouse

Figure 1.4 The “Inland Empire” is approximately one hour’s drive from the
ports of Long Beach and Los Angeles, located at the crossroads of major
interstates I10, I15, and I215, and is home to a high-quality workforce. It is also
home to perhaps the world’s largest concentration of warehouses.
is located near the large maintenance shops in one of the world’s largest
copper mines.
Warehousing and Transportation

As supply chains reduce inventory by shipping more frequently in smaller
quantities, warehouses can help to provide transportation economies of
scale by working as consolidation points for accumulating and assembling
small shipments into larger ones, less-than-truckload shipments into full
truckloads, less-than-container-load shipments into full container loads,
transloading 40-foot containers to 53-foot containers, and so on (Figure 1.9).
A frequently overlooked transportation expense is customs duties.
Bonded warehouses allow consignees to delay duty payment until their
goods are withdrawn from the bonded warehouse. Bonded warehouses
located in free-trade zones also permit in-transit goods to pass through
without duties being charged at all.

01-Frazelle_ch01.indd 9
Figure 1.5 Aerial view of a concentration of warehouses and distribution centers in the “Inland Empire”.
29/01/16 1:05 PM
9
Figure 1.6 Aerial view of Payless Shoes’ West Coast distribution center
(Redlands, California).
Figure 1.7 East Coast “Inland Empire” (Savannah, Georgia).

Figure 1.8 Rio Tinto’s vendor management inventory warehouse in support

of maintenance operations for its Kennecott copper mine located outside
Salt Lake City, Utah.
Figure 1.9 Transloading is the transfer of cargo from 20- or 40-foot ocean
containers into domestic 48- or 53-foot trailers. Depicted is Pep Boy’s East
Coast transload facility located near the Port of Savannah, Georgia.

Warehousing and Warehousing

The fifth and last set of RightChain supply chain strategy decisions has to do
with warehousing. It’s my personal favorite, but I have to admit that it’s the
last logistics activity that should be considered when developing a supply-
chain strategy. First, a clever trip through the first four RightChain initiatives
may eliminate, should minimize, and will correctly determine the need for
warehousing as opposed to letting the warehouses play their normal role of
being the physical manifestation of the lack of supply-chain coordination,
integration, and planning. Second, the warehouse is like a goalie in a soccer
game. Like it or not, it’s the last line of defense and needs to be designed
accordingly. Third, we need the customer-service, inventory management,
supply, and transportation mission requirements from the supply chain
strategy to properly plan and operate the warehouse.
Thus, despite all the initiatives of e-commerce, supply-chain integration,
efficient consumer response, quick response, lean Six Sigma, and JIT deliv-
ery, the supply chain connecting manufacturing with end consumers will
never be so well coordinated that warehousing will be eliminated completely.
In fact, the length of supply chains owing to global sourcing and the potential
for disruption as a result of increasing numbers and severity of climatic and
security incidents are increasing the need for warehousing and the value
warehousing adds in businesses and supply chains. As all these disruptions
take hold, the role and mission of warehouse operations are changing and
will continue to change dramatically.
1.1 Warehousing Through the Years
Warehousing has evolved from a simple activity devoted primarily to

material storage in the 1950s and 1960s (Figure 1.10). With the adoption of
JIT principles in the 1970s and 1980s came smaller order sizes more often,

Figure 1.10 Warehousing through the years.
Distribution Logistics Fulfillment

Warehouse Center Center Center
Value- Manufacturing
Added Assembly
S Order
Assembly Services
T Value-
O Added
Services
R S Order
A T Assembly
O Order
G R Assembly
E A
G Storage
Storage
E
1950s/1960s 1970s/1980s 1990s/2000s 2010s/2020s
Mass Production Just-in-Time (JIT) Lean/SCM Mass Customization/3DM
Mainframe PC Internet Mobile/Wireless
Poor Quality Statistical Process Control 6 Sigma Zero Tolerance
Months Weeks Days Hours
Mom & Pop/Woolworth’s Malls/Wal-Mart On-Line Shopping/Amazon Omni-Channel
less inventory, and a greater need for order-assembly activities occupy-

ing the space made available by inventory reductions. Warehouses were
transformed into distribution centers, beginning the reimaging of ware-
housing from a career-killing profession to a career-making profession.
With the adoption of postponement, mass customization, supply chain
integration, and global logistics in the 1990s, a number of cross-docking
and value-added service activities were added in the warehouse. Logis-
tics centers were created out of distribution centers, combining custom-
ized labeling and packaging, kitting, international shipment preparation,
customer-dedicated processes, and cross-docking with the traditional
activities of storage and order assembly. The distinctions between manu-
facturing, transportation, and warehousing activities blurred. The margin
for error is minimal (Figure 1.10).

All these changes accumulate to put warehouse managers in duress.

Under the influence of e-commerce, supply-chain collaboration, globaliza-
tion, quick response, and JIT, warehouses today are being asked to
■■ Execute more smaller transactions

■■ Handle and store more items
■■ Provide more product and service customization
■■ Offer more value-added services
■■ Process more returns
■■ Receive and ship more international orders
At the same time, warehouses today have
■■ Less time to process an order

■■ Less margin for error
■■ Fewer young, skilled, native-speaking, literate personnel
■■ Less warehouse management system capability (a by-product of
Y2K investments in enterprise resource planning systems)
I call this rock-and-a-hard-place scenario the plight of the warehouse

manager. Never has the warehouse been asked to do so much and at the same
time been so strapped for resources. This makes it even more important to
understand the fundamentals and best practices of warehousing. Such an
understanding begins with a basic classification of the roles of warehousing
in a logistics network.
1.2 Warehousing Fundamentals
Warehouses are not disappearing but continue to play many valuable busi-
ness and supply chain roles. Those roles have names (Figure 1.11).

Figure 1.11 The role of the warehouse in the logistics chain.
Home Delivery DC
Raw Material Warehouse Omni-Channel DC
Finished Goods (FG)

Warehouse
Retail DC
Plant
Warehouse
Work-in-Process (WIP) Cross-Dock DC

Warehouse
Overflow Warehouse
Raw material warehouses hold inventory near or in factories where

the timely support of production and assembly schedules is the
key to success.
Work-in-process warehouses hold inventory in or near factories
and serve primarily as variation buffers between production
schedules and demand.
Finished-goods warehouses (or plant warehouses) typically hold large
quantities of finished goods awaiting deployment to distribution
centers.
Overflow warehouses are typically located near plant warehouses often
hold seasonal inventory and are frequently operated by a third party.
Nearly two-thirds of all plant warehouses have overflow warehouses.

Distribution center warehouses are located much closer to the

customer base than are plant warehouses. Distribution centers
typically receive product from many plant warehouses and serve
customers with same- or next-day delivery. The delivery point
for the distribution center determines its name. Home delivery
distribution centers deliver to homes. Retail distribution centers
deliver to retail stores. Omni-channel distribution centers deliver
to a mix of homes and retail stores. Cross-dock distribution
centers do not hold product but simply mix and sort.
Bonded warehouses typically sit inside free-trade zones and facilitate
delayed duty payments.
Public warehouses are operated by third parties and are open to the
public for what are typically short-term storage agreements.
Contract warehouses are operated by third parties and typically are
dedicated to single users for extended periods.
Retail back rooms, tool cribs, storerooms, and parts lockers are also
forms of warehouses that do not carry the warehousing name (Figures 1.11
through 1.13).
Although the roles and names of warehouses may differ, the internal
activities are remarkably similar. Those activities include the following:
1. Receiving is the collection of activities involved in (a) the orderly

unloading and receipt of all materials coming into the warehouse,
in (b) providing the assurance that the quantity and quality of such
materials are as ordered, and in (c) disbursing materials to storage or
to other organizational functions requiring them. Prepackaging is an
optional activity that is performed in a warehouse when products are
received in bulk from a supplier and subsequently packaged singly,
in merchandisable quantities, or in combinations with other parts to
form kits or assortments. An entire receipt of merchandise may be

Figure 1.12 Plant finished-goods and raw-materials warehouses supporting

H.P. Hood’s Winchester dairy plant.
Figure 1.13 Traditional warehouse process flow.
Broken-
Case Picking Case
Picking
Pallet Storage and Retrieval
Order Assembly
Cross
Inbound Staging Outbound Staging
Docking

processed at once, or a portion may be held in bulk to be processed

later. This may be done when packaging greatly increases the storage-
cube requirements or when a part is common to several kits or
assortments. Cross-docking is moving inbound material directly from
the receiving dock to the shipping dock, essentially filling orders from
receiving.
2. Put-away is the act of placing merchandise in storage. It includes
moving material to and placing material in assigned put-away
locations.
3. Storage is the physical containment of merchandise while it is
awaiting a demand or until it is released from quarantine. The storage
method depends on the size and quantity of the items in inventory
and the handling characteristics of the product and/or its container.
We characterize storage systems as pallet storage systems, case storage
systems, and broken-case storage systems.
4. Order picking is the process of removing items from storage to meet
a specific demand. Order picking is the basic service a warehouse
provides for its customers, and it is the function around which most
warehouse designs are based.
5. Shipping typically includes
a. Sorting batch picks into individual orders and accumulating
distributed picks into orders (This must be done when an order
has more than one item and the accumulation is not done as the
picks are made.)
b. Checking orders for completeness and accuracy
c. Packaging merchandise in an appropriate shipping container
d. Preparing shipping documents, including packing lists, address
labels, and/or bills of lading
e. Weighing and cubing shipments to determine shipping charges
f. Accumulating orders by outbound carrier
g. Loading trucks

1.3 How to Read This Book
World-Class Warehousing and Material Handling is a journey through our

RightHouse principles and practices required to execute each warehouse
activity at a world-class level. First is RightViews, warehouse activity pro-
filing, the data and pattern recognition required to quickly and objectively
reveal opportunities for simplification, process integration, and process
automation. Second is RightScores, warehouse performance, cost, and value
measures, where we will consider financial, productivity, utilization, quality,
and cycle-time metrics and how to use them in justifying new warehouse
projects. Third are RightIns and RightPuts, aimed at optimizing receiving
and put-away. There we will study cross-docking, direct put-away, directed
put-away, dock optimization, prereceiving, and interleaving. RightStore,
discussed in Chapters 5, 6, and 7, presents systems and best practices for
optimizing pallet storage and retrieval, case storage and picking, and broken-
case storage and picking. RightPick and RightShip present principles and
practices to optimize order picking and shipping. RightPaths presents our
seven-step methodology for optimizing warehouse layout and material flow.
RightComms concludes the book with a presentation of the latest warehouse
communication systems.
Our RightHouse principles were developed during a retrospective
review of hundreds of warehousing projects, including greenfield ware-
house designs, warehouse layout designs, warehouse operations bench-
marking, warehouse process improvement, and warehouse management
systems design and implementation in literally every part of the world. The
common denominator in those breakthrough process improvements is the
elimination and simplification of work content. To the extent to which you
can eliminate and simplify that work content, you will be successful in your
pursuit of world-class warehousing.


CHAPTER TWO
WAREHOUSE ACTIVITY PROFILING, DATA

MINING, AND PATTERN RECOGNITION
2.1 The P’s and P’s of Profiling
2.2 Warehouse Activity Profiles
2.3 Calendar-Clock Profiles
2.4 Item Activity Profiling
2.5 Inventory Profile
Imagine that you were sick and went to a doctor for a diagnosis and
prescription. When you arrived at the doctor’s office, he already had a
prescription waiting for you, without even talking to you, let alone looking
at you, examining you, or doing blood work. In effect, he wrote your pre-
scription with his eyes closed and a random prescription generator. Needless
to say, you would not be going back to that doctor for treatment.
Unfortunately, the prescriptions for many sick warehouses are written
and implemented without much examination either. For lack of knowledge,
lack of tools, and/or lack of time, many warehouse projects launch without
any understanding of the root cause of the problems and without explora-
tion of the real opportunities for improvement.
Warehouse activity profiling and data mining is the systematic analysis
of item and order activity, seeking to identify and take advantage of patterns
21

of opportunity. Our pattern recognition algorithms highlight the root cause

of material and information flow problems, pinpoint major opportunities
for process improvements, and provide an objective basis for project-team
decision making.
I will start with some of the major motivations and potential roadblocks
to successful profiling. Then I will review a full set of example profiles and
their interpretations. The examples will serve to teach the principles of pro-
filing and as an outline for the full set of profiles required for warehouse
reengineering.
2.1 The P’s and P’s of Profiling
I have been leading, facilitating, researching, and teaching activity profiling

and data mining for more than 20 years. I recently summarized our lessons
learned as the P’s and P’s of profiling.
The Preparation of Profiling

The first thing I do before writing a new article is to read what others have
written about the topic. If I am preparing to teach a class or a seminar, I do
the same thing: I review what others have prepared on the topic to stimu-
late my thinking. Reviewing activity profiles works the same way; it is like
reading an illustrated journal of the warehouse activity. As you study the
profiles of customer orders, purchase orders, item activity, inventory levels,
and so on, the creative juices should begin to flow as your understanding of
underlying activity improves.
The Power of Profiling

Done properly, the patterns in profiling quickly reveal a small set of candidate
process flows and material handling equipment types for each warehouse
activity. Conversely, profiling quickly eliminates process and equip-
ment options that really do not warrant consideration. Many warehouse

Chapter two Warehouse Activity Profiling, Data Mining, and Pattern Recognition 23
reengineering projects go awry because we waste valuable resources

analyzing concepts that were doomed from the start.
The Participation of Profiling

Profiling involves key stakeholders. During the profiling process, it is natural
to ask people from many affected groups to provide data, to verify and ratio-
nalize data, and to help interpret results. To the extent those stakeholders
have been involved, they have helped with the design process.
The Probity of Profiling

Profiling supports and promotes objective decisions. I worked with one
client whose team leader we somewhat affectionately called “Captain
Carousels.” No matter what the data said, no matter what the order and
profiles looked like, no matter what the company could afford, he was going
to have carousels in the new design.
The Purpose of Profiling

You will see myriad complex statistical distributions in our journey through
warehouse activity profiling. Why go to all the trouble?
Suppose that we are trying to determine the average number of items
on an order. Figure 2.1 shows that 50 orders are for one item, 0 are for two
items, and 50 are for three items. What is the average number of items per
order? It’s two. How often does that happen? It never happens! If we are not
careful to plan and design based on distributions as opposed to averages,
our plans and designs will be flawed.
The Principal and Principle of Profiling

Vilfredo Pareto was an Italian economist and gardener. Pareto’s law stems
from his observation that 80 percent of the land was owned by 20 percent
of the population and that 20 percent of the peapods in his garden yielded
80 percent of the peas. Joseph Juran called this principle the “separation of
the vital few from the trivial many.” Activity profiling and data mining are

Figure 2.1 Items per order distribution completed for a small mail-order
company.The average is two lines per order, but the average never happens.
50% 50%
50%
45%
40%
35%
30% The average is 2,
but
25%
there aren’t any 2s.
20%
15%
10%
5%
0%
0%
1 2 3
Items per order
essentially the repeated and logical application of Pareto’s law, sometimes

referred to as the 80/20 principle or ABC analysis. Examples of Pareto’s law
working in warehousing include
■■ A minority of the items generate a majority of the activity.

■■ A minority of the items are responsible for a majority of the
inventory.
■■ A minority of the customers generate a majority of the picking
and shipping activity.
The Pictures of Profiling

When you see a picture you experience a thousand simultaneous thoughts.
We are aiming for the same effect in warehouse activity profiling as we paint
a representative picture of warehouse activity. In profiling, we capture the
activity of the warehouse in pictorial form so that we can quickly develop
wise, data driven, consensus decisions.

The Perspectives of Profiling

If a picture is worth a thousand words, then a video is worth a thousand pic-
tures. Interactive data visualization, simulation, and animation are the closest
media we have to video for activity profiling. Interactive data visualization
(Figure 2.2) is simply dynamic charting controlled by the user. Simulation
(Figure 2.3) is typically a two-dimensional representation of the physical
warehouse with the activity profiles moving warehouse objects according to
the profiles. Animation (Figure 2.4) is three-dimensional simulation.
The Pitfalls of Profiling

One warning before we begin to profile the warehouse (as an engineer and
logistics nerd, I fall into this trap a lot): We can drown in our own profiles.
Some people call this paralysis of analysis! If we are not careful, we can get
so caught up in profiling itself that we forget to solve the problem.
2.2 Warehouse Activity Profiles
Over the years we have developed a structured and comprehensive suite of

activity profiles to address the major planning, design, and management
decisions in a supply chain strategy. The profiles are constructed with our
proprietary pattern recognition algorithms and are fed from a supply chain
data warehouse (Figure 2.5). The warehouse activity profiles are organized
according to Figure 2.6.
Order Profiles
Order profiles include customer order profiles, purchase order profiles, and
inbound/outbound transportation order profiles. They jointly portray the
major patterns of warehouse activity. Time and space do not permit a full
description of each of the four major profiles. I selected customer order
profiles as the context for our presentation on order profiles.

26
Figure 2.2 Interactive warehouse data visualization for a large consumer products company.
29/01/16 1:05 PM
Figure 2.3 Two-dimensional warehouse simulation for a large pharmaceutical

company.
Figure 2.4 3D animation model of a large cosmetics distribution center.

Figure 2.5 RightChain™ Decision Support Suite.
RightChainTM Scoreboard
Inventory Supply IB Transportation Warehouse OB Transportation Customer

Scoreboard Scoreboard Scoreboard Scoreboard Scoreboard Scoreboard
Inventory Supply Activity IB Transportation Warehouse OB Transportation Customer

Activity Profile Profile Activity Profile Activity Profile Activity Profile Activity Profile
Transportation
Transportation
Transportation
Master File
Master File
Master File
Master File
Master File
Master File
Warehouse
Warehouse
Customer
Customer
Purchase
Supplier
Orders
Orders
Orders
Orders
Orders
Carrier
SKU
SKU Supplier Carrier/Lane Order Carrier/Lane Customer

Simplification Simplification Simplification Simplification Simplification Simplification
Storage Mode Optimization
Deployment Optimization
Issue Pack Optimization
Issue Pack Optimization
Shipment Optimization
Shipment Optimization
Network Optimization
Network Optimization
Forecast Optimization
Delivery Optimization
Slotting Optimization
Fill Rate Optimization
Lot Size Optimization
Fill rate Optimization

Layout Optimization
Mode Optimization
Mode Optimization
Shelf Optimization
Fleet Optimization
Inventory Sourcing Transportation Warehouse Transportation Service

Optimization Optimization Optimization Optimization Optimization Optimization
RightChainTM Optimization & Planning System
Material and information should flow through a warehouse to facilitate

excellent customer service. What do customers really want from a warehouse?
They want their orders filled in an accurate, timely, and cost-effective manner.
Accordingly, the first thing we must understand to plan and design warehouse
operations is the profile of customers and their orders.
Customer Paretos
Some customers place such high demands on a warehouse, represent such
a large portion of the activity of the warehouse, and have such demanding
customer-service requirements that it may make sense to establish a separate
area within the warehouse for those customers. For example, one of our
apparel manufacturing clients does so much business with JC Penney that

Figure 2.6 Warehouse activity profiles.
Warehouse Activity
Profiles
Order Profiles Item Profiles
Customer Purchase Item Activity Item Inventory

Order Profiles Order Profiles Profiles Profiles
Customer Supplier Activity Inventory

Paretos Paretos Paretos Paretos
Composition Composition Demand

Profiles Profiles Correlation
Volumetric Volumetric
Profiles Profiles
Calendar Clock Calendar Clock

Profiles Profiles
they have a JC Penney warehouse within their warehouse. It is not uncom-

mon for consumer products and food manufacturing companies to have
areas within their warehousing dedicated to Wal-Mart activity.
The customer pareto in Figure 2.7 is from one of our food and bev-
erage clients. Note that just three customers make up 50 percent of our
client’s distribution center activity. Accordingly, we assigned each of those
customers their own zones in the warehouse to reduce travel time and
improve customer service.
In another example (Figure 2.8), in a large publisher’s distribution
center, a central pool of reserve stock is used to support three distinct
internal customers/business units—retail, trade, and periodicals. We
designed the central, shared warehouse with allocated, random storage and

30
Figure 2.7 A small minority of customers generate a large majority of picking and shipping activity.
29/01/16 1:05 PM
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form the basis of similar contracts at the present day. The
requirement of ordinary or extraordinary diligence and care was
then, as now, dependent upon the question whether one or both
parties derived benefit from the bailment. In case of gross
negligence or fraud, the bailor was entitled to an animal or article
of equal value to the one lost or destroyed; just as he can now,
under similar circumstances, recover damages in a suit at law.
The forfeiture of half the value of the property loaned, when it was
stolen, and negligence was not established, or even alleged, is a
novel regulation, and one especially calculated to render the
bailee more careful and alert. The custom of pawning property as
security for money loaned is, no doubt, as ancient as any
business transaction, and is the pignori acceptum of the Roman,
and Civil and Common Law authorities. The question of
negligence does not seem to have been considered where a
pledge was stolen; for, in this case, the entire loss was sustained
by the bailor, and not half of it, as when the article was merely
loaned by way of accommodation, and no remuneration for its
use was expected.—[Ed.]
]
[32] The savage Lex Talionis of the Mosaic Code, which
demanded “an eye for an eye and a tooth for a tooth,” was
permitted by the Visigothic jurisprudence, as is disclosed by this
and other chapters. In most instances it was authorized where, on
account of the poverty of the culprit, a pecuniary compensation
was not forthcoming. Notwithstanding the abuse to which it was
inevitably liable, there is certainly a measure of stern and
retributive justice in the provision consigning a false accuser to
the vengeance of the family of his deceased victim; as well as in
the case of a wicked and corrupt judge, who maliciously permitted
an innocent man to be tortured to death. The Lex Talionis was not
unknown to the Romans, and is referred to in the Twelve Tables;
but, in after times, their ideas of the proper functions of judicial
tribunals, in the infliction of penalties, were too correct to
countenance either its acceptance or enforcement.—[Ed.]
[33] Ignorance, inhumanity, and contemptuous disregard of the
principles underlying the law of evidence, have, in all ages,
impelled semi-barbarians and churchmen to the employment of
torture. The absolute unreliability of such a means of eliciting
truth, one would naturally suppose would cause it to be rejected
by nations in the enjoyment of advanced educational facilities and
occupying a high rank in the scale of civilization. Such, however,
was far from being the case. An inheritance of the atrocities of the
Inquisition, it was still used in France and Spain during the
eighteenth century. In Scotland, which was subject to the Civil
Law, it was not forbidden until the time of Queen Anne. Although
prohibited by Magna Charta, and absolutely unknown to the
Common Law of England, torture was, nevertheless, frequently
employed as late as the reign of Charles I. A form of it, the peine
forte et dure, applied where a prisoner accused of felony stood
mute, was authorized by the Statute I, 3, Edward I. During the
reign of the tyrannical Henry VIII, the question was in high favor
with that monarch and his legal advisers, and the public
tormentor, while his profession carried with it the highest possible
degree of execration and infamy, was the object of both fear and
adulation among the rabble. Such famous lawyers as Sir Edward
Coke and Sir Francis Bacon, were earnest advocates of the
efficacy of the rack in extorting evidence from recalcitrant
witnesses and suspected traitors. In none of the above mentioned
instances, were any restraints imposed upon the zeal or
malevolence of those entrusted with the application of this relic of
barbarian procedure. Under the judicial system of the Visigoths,
however, the abuse of torture, or even negligence in its
employment, was severely punished; and sometimes, as may be
seen from the above, retribution was exacted by the no less
iniquitous Lex Talionis. Pecuniary compensation for damages
sustained through malice, or neglect of proper care, or where an
innocent person was put to the torture, while an inadequate return
for the wrong inflicted, was not, under similar circumstances,
sanctioned by the customs and practice of more cultured nations,
nine centuries subsequently. As a slave was a chattel, he
possessed no civil rights, and his master, for this reason, had the
privilege to compound his offence, if it were not of too serious a
character. The fixing of a prescribed limit, in the value of the
property involved, for less than which the question could not be
employed, is derived from the arbitrary tariff of fines imposed for
the loss of limbs, and other personal injuries, which has always
been in use among semi-civilized races. Distinction in point of
rank and social position was sedulously observed by the Visigoths
in the case of the infliction of torture, as well as in the imposition
of penalties for violating the laws and in all subjection to civil
disabilities. The worse than useless character of this mode of
examination was never considered by mediæval authorities,
although it was ably set forth many centuries previously by
Cicero, in the following terse and vigorous language: “Regit
quæsitor, flectit libido, corrumpit spes, infirmat metus, ut in tot
rerum angustiis nihil veritati loci relinquatur.”—[Ed.]
[34] This would have been readily accepted as law under
James I, a thousand years subsequently; and, no doubt, would
have been indorsed as sound by Cotton Mather, whose
sanguinary executions for witchcraft took place nearly eleven
centuries after the death of the Visigothic king, Chintasvintus. The
penalties for sorcery set forth in the Forum Judicum, were far less
harsh than those prescribed by the Anglo-Saxon jurisprudence.
The punishment of death was not permitted by the former, except
where life had been lost through the effect of incantations or
charms; a rare occurrence, as may well be surmised; and torture
by fire is not even referred to, still less tolerated. In this instance,
as in many others, the more lenient policy of the barbarian
appears in striking contrast to the fierce and blind intolerance and
cruelty of nations in the possession of superior culture and
intelligence, and living in a far more progressive age.—[Ed.]
[35] While abortion, as is well known, was not a crime at
Common Law, and, under statutory regulations, was for a long
time not considered punishable until the period of quickening; it
was, however, recognized as a serious offence by the Romans,
whose legislation on the subject was copied by the Visigoths. The
wide variation of the penalties prescribed was, as is usual, largely
dependent upon the social standing of the culprit; excepting in the
provisions of the seventh chapter, where the innate cruelty of
barbarian retribution is disclosed by one of the most frightful of
punishments.—[Ed.]
[36] It is probable, from the extreme cruelty of the penalty
imposed for professing ignorance of the laws of the land, that this
defence had been frequently set up by criminals, and that it had,
in not a few instances, been pleaded with success. There is not,
in the entire Code, a sentence exceeding this in severity, as the
crime itself is supposed to have been sufficiently expiated by the
infliction of the Lex Talionis.—[Ed.]
[37] The various degrees of homicide, as set forth in the
preceding chapters, were clearly understood if not specifically
designated, by the Visigothic legislator. Chapter XI, which
describes the crime corresponding to murder in the first degree, is
the only one of undoubted Roman origin; all the others being the
acts of Councils, or the edicts of kings. In the first and second
chapters, the circumstances which characterize excusable
homicide are stated; and in the third, fourth, fifth, sixth, and
seventh, the conditions attending the crime of manslaughter are
explicitly defined. The vital question of intent, or the existence or
non-existence of malice prepense, is referred to repeatedly, both
in a positive and negative manner, whenever homicide is
described. The humane protection afforded the slave from the
cruelty of his master, as provided for by Chapter XII, suggests
what frightful abuses must have previously resulted from the
unrestrained exercise of magisterial tyranny. The guilt of the
accessory-before-the-fact was not considered as great as that of
the principal; as the penalty to which the former was liable, while
being severe, as well as in the highest degree ignominious, fell
short of the infliction of death. The horror with which a parricide
has always been regarded, was likewise felt by the Visigoths, as
is disclosed by his summary execution by the same means that
he employed to take the life of his victim; a form of the Lex
Talionis which was only made use of in the case of crimes of
peculiar atrocity. The blinding to which a murderer was subjected,
who had claimed the right of asylum, was far from being an
exhibition of clemency, and certainly entailed greater suffering
than the extreme penalty otherwise prescribed by the law.
Homicide was justifiable, as has been seen, when committed in
self-defence against an attacking party; in certain cases of
trespass vi et armis, and where a father killed his adulterous
daughter in his own home, or a husband caught an adulterer with
his wife, in flagrante delicto. In the latter instances the offender
was especially exonerated from all blame, on account of the
provocation; and, therefore, could not be held for manslaughter,
as he now can be, under the statutes of the majority of our States.
Justification could also be pleaded where a criminal was killed
while committing highway robbery, larceny, or burglary; the latter
(furtum nocturnum) being a much more comprehensive term than
ours, and including all kinds of nocturnal depredations. The
employment of that popular American fiction, the “unwritten law,”
by means of which so many homicides have been acquitted, and
which appeals so strongly to the primitive sense of retributive
justice which still dominates humanity, was thus openly endorsed
by the Visigothic Code. Insanity, as a defence for homicide, was
utterly unknown to the legal systems of antiquity; and it is only
under the highly artificial conditions of modern civilization that this
theory has attained such an extraordinary, and often pernicious,
development.—[Ed.]
[38] It is rather remarkable that the theft of royal property
should only have been punished by the imposition of a fine equal
to that prescribed where a private individual was robbed. It is
evident that, under a strict construction of this law, no other
penalty could be inflicted.—[Ed.]
[39] This chapter, a survival of the irresponsible authority
exercised by the Roman dominus, is the only one in the Code
where the fate of a slave, guilty of crime, is specifically and
absolutely left to the will of his master. It is possible that, on
account of the facility afforded for the commission of such
offences, the possession of extraordinary power was supposed to
be required, as a safeguard.—[Ed.]
[40] The enforcement of the Lex Talionis in case of the
kidnapping of a freeborn person indicates the abhorrence with
which the crime, ever regarded by all nations as one of the most
atrocious in the calendar, was viewed by the Visigoths. As slaves
were valuable articles of property, the legislation of the Code was
principally directed against those who stole them. The kidnapping
of women, having been already provided for under the title of
Rape, is, for that reason, not referred to here.—[Ed.]
[41] The mildness of the sentence imposed for the crime
described in this chapter, which seems to include the capital
offences of treason and lèse-majesté, as well as the lesser one of
forgery, is most extraordinary and inexplicable. Although “the
divinity that doth hedge a king” was not fully recognized or
appreciated by the Visigoths of the seventh century, whose
monarch was the creature of an ecclesiastical council, and not
infrequently deduced his origin from any but a princely house, it is
still inconceivable that these offences being particularly directed
against the regal dignity, should have been regarded as personal
and of trifling moment, for it can be readily conjectured what
serious trouble and embarrassment a spurious edict, purporting to
emanate from the throne, might cause.
The “notaries” herein referred to were secretaries, shorthand
writers or amanuenses.
This law is of Roman origin, and the amputation of a finger or
a hand, while not unusual under that system, was a more
prominent feature of Greek penal legislation, from which the
Romans, at the time of the adoption of the Law of the Twelve
Tables, borrowed many of their punishments.—[Ed.]
[42] The penalty above described for an offence of such
gravity as highway robbery, seems to be grossly inadequate. It is,
however, a peculiarity of the Visigothic Code that, for many
breaches of the law which we class as misdemeanors, it
authorizes punishments generally inflicted for the commission of
felony, and vice versa. Perhaps the courts construed the
expression “complete legal satisfaction,” to mean the sentence
usually imposed for theft. There can be little doubt that the
obscurity of the language which often characterizes the edicts of
the Forum Judicum, would, under a less strict and impartial
judicial system, have offered many opportunities for the escape of
an offender from the legal consequences of his crime.—[Ed.]
[43] Between one twelfth and one fourteenth of an acre. The
great Roman highways, portions of which are still in good
preservation in some of the provinces of the Spanish Peninsula,
and especially in Estremadura, were usually from eleven to fifteen
feet wide; and, with the space required by the Visigothic laws to
be left unenclosed for the passage of cattle, were sometimes sixty
to a hundred feet in their entire width.
The Visigothic surface measures were partly Roman, partly
Gallic, and partly Gothic. The standard, the Jugerum .622 acre,
was older than the Roman Republic; the Arepennis, equal to half
a Jugerum, was used by the Gauls; and the Aratrum, or
“ploughland,” corresponded to an area of a hundred and twenty
acres, approximately, and is of Northern derivation. The Aratrum
was divided into “oxgates,” or “oxlands,” being as much arable
soil as could be tilled by an ox, usually fifteen acres, but varying
according to country and custom. For purposes of description, the
latter term, evidently an importation of the Danes or Saxons, is
frequently employed in the ancient English works on tenures;
particularly where the latter were of the classes designated as
“base,” and “in gross”; as well as in conveyances and leases,
where absolute accuracy of boundaries was either unnecessary
or unattainable. The divisions of “ploughland” and “oxgate” were
used much more recently in Scotland than in England.—[Ed.]
[44] The reader cannot have failed to remark the striking
analogy existing between the laws of the Forum Judicum relating
to strays, and our own statutory enactments on the same subject.
Indeed, aside from some of the penalties imposed, and the
amount of compensation allowed, the regulations are, in many
instances, almost identical. Unlike a great part of the Visigothic
legislation, where trespass, and other violations of the law of real
property are involved, few of the provisions concerning strays are
derived from Roman sources. Most of them are unquestionably
survivals of the ancient legal traditions of the wandering Gothic
tribes, the great bulk of whose wealth consisted of flocks and
herds of sheep and cattle.—[Ed.]
[45] This law was evidently intended to repeal the preceding
one, although this is not specifically stated. Its enactment, as is
set forth in the preamble, was demanded by the constantly
increasing number of marriages between freeborn persons and
slaves. The degradation attending such unions does not seem to
have been regarded by the masses with the same prejudice that
actuated the law-making power, whose interest it was to rigidly
maintain the barriers of caste.—[Ed.]
[46] The great value of slaves, as articles of personal property,
and the manifest sympathy of the people with them, seem to have
prompted the enactment of this law, by which the inhabitants of
an entire district were to be turned into a corps of detectives for
the capture of fugitives; and the severest penalties were
denounced against all, irrespective of age, sex, social standing, or
rank, for non-compliance with its provisions. The statement that
no community, large or small, was without a number of fugitive
slaves, who, sure of the assistance of their neighbors, scarcely
took the trouble to conceal themselves, indicates that human
servitude was not popular with the majority of the people of the
Iberian Peninsula. It would appear, also, that the magistrates,
whose executive delinquencies rendered them liable to the same
punishment as the offenders themselves, were frequently loth to
execute the law. The marked consideration always shown the
clergy by their legislative brethren, is again disclosed by the
amusing inequality of penalties prescribed for the neglect of
official duties. There is a great and painful difference between the
limitation to one meal a day, for a month (a privation, it is hardly
necessary to add, which might be readily evaded) and two
hundred lashes, laid on vigorously with a scourge. This law gives
us a curious insight into life in those times, and one that could
have been derived from no other source; and it is especially
instructive in the information it affords concerning the feelings
entertained by all, except the comparatively few members of the
privileged classes, towards those in the servile condition.—[Ed.]
[47] The military organization of the Visigoths bore a striking
resemblance to those of modern armies, and coincided, in only a
few unimportant particulars, with that of the Roman legion.
Division by means of the decimal system, popular among all
semi-barbarian races on account of its simplicity, and the facility
of arrangement it affords, was universally employed. The
commander-in-chief, styled in the Code, præpositus hostis, was
usually a dux, or duke; the lieutenant-general a comes, or count.
The commander of a thousand men, corresponding to our
colonel, was denominated tiuphadus; next in rank came the
quingentarius, who had charge of a battalion of five hundred; then
the centurion, and the decurion, in command of a company of a
hundred, and a squad of ten men, respectively. The conscription
officers were called compulsores exercitus, and the quarter-
masters or commissaries, annonarii.
This military gradation was also maintained in civil life, in time
of peace. The dux was the governor of the province in which he
lived; the comes, the governor of the chief city of his district; the
tiuphadus was responsible for the behavior of the thousand men,
and their families, over whom he exercised control. All these, with
several other civil functionaries, had the privilege of holding court,
and were invested by the law with the title of judge: “judicis
nomine censeantur ex lege.” See Code II, 1–25.—[Ed.]
[48] While this is an early instance of the recognition of the
offence of scandalum magnatum, subsequently regarded as a
heinous crime against the Lord’s anointed, and still, under the
name of lèse majesté, punished with exemplary severity by many
of the monarchs of Europe, it here assumes a broader
significance than it did in later times, as it applies also to the
people, and thus includes the torts of slander and libel.—[Ed.]
[49] The gardingus was the third in rank of the Visigothic
nobility, coming after the dux and comes. Unlike either of them,
however, he, as a rule, exercised no public employment; and
being ordinarily a person of great wealth, and descended from a
long line of ancestors, materially contributed, by the richness of
his appointments, and the number of his retinue, to the pomp and
splendor of the royal court.—[Ed.]
[50] The intricate questions relating to the leasing,
conveyance, descent, and forfeiture of real property are, as has
been seen, elaborated and set forth with great skill and learning in
the Visigothic Code. Not a single chapter treating of this subject is
designated Antiqua, to indicate that it is derived from the Civil
Law. And this is the more remarkable when the nomadic origin
and barbarous customs of the not remote ancestors of those who
enacted these important regulations, are considered. A nation of
shepherds and marauders could not be supposed to be familiar
with the tenures, contracts, transfers, boundaries, and torts, by
which the title to landed estates is either acquired or lost; yet the
Visigoths framed their laws with due consideration for the
principles of equity, and the general welfare of all classes of
freeborn citizens. In many respects their laws were superior to
those of the Romans. Only two years by the Twelve Tables, and
twenty under the Code of Justinian, were necessary to create a
prescriptive right to the ownership of land. Under the Roman
jurisprudence, until the population became debased by servile
and barbarian marriages, no foreigner could legally hold or
convey real-property. The Visigothic Code, on the other hand,
carefully guarded the rights of the subject race, and prevented
them from being prejudiced by the fraud or oppression of their
rulers. The inferior classes under the Republic and the Empire,
were practically serfs, living in a condition of abject villenage;
those of corresponding station subject to the domination of the
Visigoths, were often thrifty tenants of indulgent landlords, or, at
the worst, were bound by exacting contracts which they had
entered into of their own free will. The extreme solicitude
manifested for the protection of the rights of all parties, where the
title to real-property is concerned, is disclosed by the manifold
precautions enjoined, and the stringent rules to be observed, in
determining the existence of adverse possession. A contract for
the rental of land, which would be valid in any of our courts, could
easily be drawn from the laws of the Code relating to leaseholds.
—[Ed.]
[51] “Ludibrium interdum adcrescat.” It would appear from this
precautionary measure, that the members of the medical
profession, in that age, did not differ greatly from some of their
brethren of to-day. The practice of medicine was not highly
regarded by the Visigoths, a nation of warriors, and it was often
exercised by slaves, as formerly at Rome, and subsequently by
barbers and charlatans during the Middle Ages. Malpractice was
a term of the broadest significance; the risks assumed by the
practitioner, even in ordinary cases, were not compensated for by
the fees he was entitled to receive, when successful; and the
danger of damages and penalties he incurred where he lost a
patient, made the profession anything but an alluring one. After
rendering conscientious and assiduous services, to be considered
guilty of homicide, and be surrendered to the exasperated
relatives of the deceased patient, as a subject for the savage
excesses of the Lex Talionis, was not a prospect calculated to
advance the interests of medical science.
Not until three centuries later, under the Moorish domination,
did the physician and the surgeon acquire the extensive
knowledge, and attain the professional eminence, which made
the medical colleges of the Spanish Peninsula the centre of that
branch of learning, not only of Europe, but of the then known
world.—[Ed.]
[52] This law, which grants to every foreign trader the privilege
of being judged by his own magistrates, is the precursor of
modern legislation establishing consular and other tribunals
instituted to protect the commercial interests, and define the
judicial rights, of persons transacting business in another country,
and is of unknown antiquity. It is, however, at least thirteen
hundred years old. A people capable of appreciating and adopting
such a measure, must have had intelligent conceptions of the
maxims and requirements of international law and have made no
inconsiderable progress in the arts of civilization.—[Ed.]
[53] This pleasing homily, which precedes a collection of the
most atrocious laws ever devised for the suppression of human
thought and the persecution of heretics—with the sole exception
of the rules of the Inquisition, of which it is the prototype—is
extremely edifying. The confidence and assurance of a heavenly
recompense, expressed by the pious king in whose name this
edict was promulgated, reveals the degrading superstition of the
time, and the absolute domination of the monarch by his spiritual
advisers.—[Ed.]
[54] The translator has interpolated between this and the
succeeding title, in the Castilian version, another, of nine
chapters, under the head of “Concerning insults and opprobrious
language.” Part of it relates to false accusations of physical
deformity and disease, or slander; part to assault, or attempted
assault, where no apparent injury resulted; and the remainder is
devoted to laws punishing those who call Christians Saracens, or
assert that they have been circumcised. The moderate penalty of
a hundred and fifty lashes was prescribed for the last two
offences.—[Ed.]
[55] In the words of the text, “veretri ex toto amputatione
plectetur.” The sentence will not bear translation, and, in the
words of a famous writer referring to a similar case, “must be
veiled in the obscurity of a learned language.” While certainly to
be classed under “cruel and unusual punishments,” it reveals a
fiendish ingenuity in adapting the penalty to the so-called offence.
—[Ed.]
Transcriber’s Notes:
1. Obvious printers’, punctuation and spelling errors have been corrected

silently.
2. Where hyphenation is in doubt, it has been retained as in the original.
3. Some hyphenated and non-hyphenated versions of the same words have

been retained as in the original.
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(Ebook PDF) World-Class Warehousing and Material Handling Second Edition Frazelle - Ebook PDF All Chapter

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00-Frazelle_FM.indd 1 29/01/16 4:32 PM

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Edward H. Frazelle, PhD

New York Chicago San Francisco Athens London

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Library of Congress Cataloging-in-Publication Data

Names: Frazelle, Edward.

RightHouse™, RightViews™, RightScores™, RightIns™, RightPuts™, RightStore™, RightPick™,

00-Frazelle_FM.indd 4 03/02/16 4:16 PM

00-Frazelle_FM.indd 5 29/01/16 4:32 PM

00-Frazelle_FM.indd 6 29/01/16 4:32 PM

00-Frazelle_FM.indd 7 29/01/16 4:32 PM

00-Frazelle_FM.indd 8 29/01/16 4:32 PM

00-Frazelle_FM.indd 9 29/01/16 4:32 PM

■■ Steve Laky, Rick Glasson and Abbott.

00-Frazelle_FM.indd 10 29/01/16 4:32 PM

■■ Lou Arace, Dave Burton and Nutrisystem.

00-Frazelle_FM.indd 11 29/01/16 4:32 PM

00-Frazelle_FM.indd 12 29/01/16 4:32 PM

00-Frazelle_FM.indd 13 29/01/16 4:32 PM

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I wrote the first edition of World-Class Warehousing in 1995. Back then,

01-Frazelle_ch01.indd 1 29/01/16 1:05 PM

Warehousing in the Supply Chain

Warehousing and Customer Service

Figure 1.1 RightChain supply-chain logistics model.

01-Frazelle_ch01.indd 2 29/01/16 1:05 PM

01-Frazelle_ch01.indd 3 29/01/16 1:05 PM

Returns constitute another customer service facilitated by good ware-

Warehousing and Inventory Management

01-Frazelle_ch01.indd 4 29/01/16 1:05 PM

01-Frazelle_ch01.indd 5 29/01/16 1:05 PM

Figure 1.3 Hallmark Cards’ warehousing complex in Liberty, Missouri. The

Warehousing and Sourcing

01-Frazelle_ch01.indd 6 29/01/16 1:05 PM

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Warehousing and Transportation

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Figure 1.7 East Coast “Inland Empire” (Savannah, Georgia).

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Figure 1.8 Rio Tinto’s vendor management inventory warehouse in support

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Warehousing and Warehousing

1.1 Warehousing Through the Years

Warehousing has evolved from a simple activity devoted primarily to

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Figure 1.10 Warehousing through the years.

Distribution Logistics Fulfillment

less inventory, and a greater need for order-assembly activities occupy-

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All these changes accumulate to put warehouse managers in duress.

■■ Execute more smaller transactions

At the same time, warehouses today have