MATERIALS HANDLING SYSTEM DESIGN - Environmentally Conscious Materials Handling - page 6

Figure 1.3 Honeycombing loss

number of storage spaces that are next closest to the I/O point, and so on.
Figure 1.4 shows an interactive playspace in the “Ten principles of Mate-
rials Handling” CD that allows a learner to understand the fundamental
concepts of the COI policy.

2.7 System

A system is a collection of interacting or interdependent entities that form a
unified whole. Material movement and storage activities should be fully inte-
grated to form a coordinated operational system that spans receiving, inspection,
storage, production, assembly, packaging, unitizing, order selection, shipping,
transportation, and the handling of returns. Here are five key aspects of the
system principle:
1. Systems integration should encompass the entire supply chain, including
reverse logistics. It should include suppliers, manufacturers, distributors,
and customers.
2. Inventory levels should be minimized at all stages of production and
distribution, while respecting considerations of process variability and
customer service.
3. Information flow and physical material flow should be integrated and
treated as concurrent activities.
4. Methods should be provided for easily identifying materials and products,
for determining their location and status within facilities and within the
supply chain, and for controlling their movement. For instance, bar coding
is the traditional method used for product identification. Radio frequency
identification (RFID) uses radio waves to automatically identify objects as