These are available for handling and storage and result in tall warehouse buildings, over 15 mtres high. These systems will definitely favour those warehouse operations that have a low product range with high throughput levels (minimum two shifts and over 60 pallets per hour), and operations where the following advantages can be exploited:
- has a 24/7 operational capability
- high labour cost reduction
- ability to increase output rate
- improvement in consistency of service
- reduction in materail handling
- increased accuracy level
- service availability
- improvement in speed of service
- improves security and reduces pilferage as people access is limited
- is useful for dangerous operating environments like chemicals (as they are practically operator free)
- products have standardised dimensions and weights and products identification
The disadvantages of automated warehouses can be summarised as: - high initial capital costs and payback periods of 3-4 years minimum
- slow return on investment, which can be up to 7-10 years
- difficult to rent out/resell
- software-related problems (e.g. poor documentation, incompability, failure)
- requires greater care in standardised packaging and bar codes/product identifications
- maintenance costs
- user interface and training
- worker acceptance
- obsolescence
- capacity problems
- lack of flexibility to respond to changing environment
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