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1.0 HISTORICAL DEVELOPMENT OF AUTOMATED STORAGE AND
RETRIEVAL SYSTEM (ASRS)

Automated storage and retrieval systems (AS/RS) are inventory management systems
that are widely used in distribution centres and warehouses throughout the United States and
the world. AS/RS systems generally consist of machines that move up and down one or
multiple parallel storage aisles, storing and retrieving products and materials
for dissemination to internal and external destinations alike. The advantages of these systems
are numerous. Automated Storage and Retrieval Systems (AS/RS) are typically used in
applications where: there is a very high volume of loads being moved into and out of storage;
storage density is important because of space constraints; no value adding content is present
in this process; accuracy is critical because of potential expensive damages to the load. They
provide users with increased inventory control and tracking, including greater flexibility to
accommodate changing business conditions. Indeed, these systems are comprised of modular
subsystems that can be easily replaced to minimize downtime and extend the service life of
the overall system. AS/RS systems also reduce labour costs, lowering
necessary workforce requirements, increasing workplace safety, and removing personnel
from difficult working conditions (such as cold food storage environments). Perhaps most
significantly, however, AS/RS systems can produce major savings in inventory storage costs,
as vastly improved warehouse space utilization—both vertically and horizontally—creates
greater storage density.

2.0 VARIOUS MAKERS/VENDORS

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There are some various makers or vendors of ASRS in Malaysia. The following table
below shows the details of the companies that were provided ASRS:
Company
MAE HANDLING SYSTEM SDN BHD
39B, Jalan Susur Perdana Tengah,
Taman Bukit Perdana 2,
83000 Batu Pahat, Johor, Malaysia.
Tel : 607-4336757
Fax : 607-4334737
Email : info@mae.com.my
URL : www.mae.com.my
ALPHA MASTER (M) SDN BHD
Plot 108 & 109, Lorong Perusahaan Utama
2, Prai Industrial Estate 4,
Bukit Tengah, 14000 Bukit Mertajam,
Penang, Malaysia.
Tel: 604-507 7811
Fax 604-507 2150, 508 2728
Website: http://www.alphamaster.com.my
E-mail: alphamaster@myjaring.net
DEXION LIMITED
MR2-01-01Sri Acappella Commercial
Annex
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Company Profile
MAE is an industrial company which offers its
specialities in material handling technologies to its
customers. The major core value of the company is
to assists its customers to sharpen their competitive
edge with the state-of-the-art material handling
system which in turn prepare them for a better
position in the ever changing market.
Products & Services: Vertical System (pallet lifter
system, ventilator, scissor-lift, bucket elevator, en-
masse conveyor, spiral conveyor, etc), Panel Board
Handling System (star cooler, board stacking
station, board reject station, board lifting system,
feeding station, etc), Sorting and Distributing
System, Bulk Material Handling System (trough belt
conveyor, bucket elevator, pipe conveyor, etc),
Storage and Retrieval System (mobile rack system,
automated horizontal carousel system, etc),
Customised System.
Alpha Master (M) Sdn. Bhd. is a leading supplier in
Malaysia automation industry, supplying automation
system & Machines. It is also a well known
Electrical Switch Board manufacturer in Malaysia
metal fabrication industry. Since it’s incorporated in
1991, Alpha Master utilizes its state of the art
facility and dedicated staff to provide our customers
with the highest quality equipment and service
possible.
Products & Services: ASRS, Sheet Metal Work,
Electrical Switch Board, Machining Works,
Machine Framework Structure, Conveyor System,
Trolleys, Racks Tables & Benches, Ovens, Jigs and
Fixtures, Pneumatic Actuator and AGV Transport.
Dexion is capable of storing and filing just about
anything. From books and files, x-rays, medical
products, DVD, CD and video storage, office
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Jalan Lompat Tinggi 13/33
Sekysen 13,
40100,Shah Alam
Selangor Darul Ehsan,Malaysia
Tel: 60-60 3 5511 1688
Website: http://www.compactus.com.my
SEE HAU GLOBAL SDN BHD
80 JALAN PAHANG,
53000, WILAYAH PERSEKUTUAN,
KUALA LUMPUR, Malaysia
Tel: 60-3-40421355
Fax: 60-3-40423407
Website: http://www.intracopallet.com
SSI SCHAEFER SYSTEMS (M) SDN
BHD
No. 2, Jalan TP5,
Taman Perindustrian UEP Subang Jaya
47600 Subang Jaya,
Selangor Darul Ehsan.
Tel: 60-603 8024 6373
Fax: 603-56211013
Website: http://www.ssi-schaefer.com/
3.0 TECHNICAL INFORMATION FOR AUTOMATED STORAGE AND
RETRIEVAL SYSTEM (ASRS)
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supplies, newspapers, magazines, general inventory,
sporting equipment, personal effects, clothes, to
artefacts of historical significance, weapons, and
criminal evidence. You name it, and a Dexion
product is storing it somewhere.
Products & Services: Pallet Handling Systems,
Rack Accessories, Integrated Systems, Specialists
Racks, Raised Storage Areas, Carton Live Storage,
Drawer Systems, Binning and Shelving, Static
Shelving, Storwall and Lockers
See Hau Global Sdn. Bhd. is a leading
manufacturer and marketer of high quality plastic
pallets. Established in 1994, they started with only
one melding machine. Today, their total annual
production capacity comes close to one million
pieces, making the company the largest
manufacturer in Malaysia and this region.
Products & Services: ASRS, Super Hygiene Pallets,
Medium Duty Pallets, Cargo Pallets, Top Frame,
and Plastic Bins.
Since its inception in 1937, SSI SCHAEFER has
been an owner-operated, German family company.
With over 50 subsidiaries worldwide, SSI
SCHAEFER is a strong and reliable partner.
Whether in industry, trade, commerce or public
organisations, our products are in use on all
continents and fulfil your tasks efficiently and
competently.
Products & Services: ASRS, Modular Shelving,
Double Deep Pallet Racking, Automatic-order
picking systems, Storage and Transport Containers,
Semi-Open Front Storage, Shelf Containers, etc.
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Automated Storage & Retrieval System (AS/RS) is to ensure smooth flow of
materials and efficient use of labour in manufacturing and warehousing facilities.
AS/RS improves productivity of transporting, buffering and sequencing of standard and non-
standard loads. Also, its high-rise storage capabilities make optimal use of available floor
space. It is built around racks, pallets, containers, and machines and is specifically designed
to fit products and processes. This flexibility enables the system to meet your unique storage
control and handling needs.

As a top company in industry, they need an Automated Storage and Retrieval System
(AS/RS or ASRS) that helps to reduce inventory, shipping and labour costs. Require a
supplier who will truly partner and develop an automated warehousing solution.

Automated Storage & Retrieval Systems (ASRS) increase warehousing efficiency by:

1. Minimizing your building footprint - up to 50%+ vs. conventional warehouses - saves

on construction costs and provides sustainable energy savings
2. Maximizing available storage space in existing structures
3. Reducing your energy costs -- typically 40%+ in cooler environments
4. Reducing your labour & product damage costs
5. "GO GREEN with High Density" automated warehouse designs have significantly
less environmental impact
6. Increasing accuracy & customer service
7. Westfalia's ASRS are better by design, due to our patented Satellite® technology,
triple supported load structures and more

System Types

a) AS/RS Inquiries

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Inquire about your automated storage and retrieval system

Mini-Load Automated Storage and Retrieval Systems

Automated storage and retrieval systems for totes, containers, or cartons

A mini-load automatic storage and retrieval system handles loads that are typically
contained in small containers, cartons, or totes with load weights typically falling in a range
of 100 to 500 pounds. The capacity range can go to 750 to 1000 pounds on the high end. A
mini-load system lets you store more material in less space, especially material in totes. It can
also handle these totes with much more velocity than conventional static, manual methods.
Despite that speed, Mini-load systems tend to run quieter than other methods. Mini-load
systems offer a variety of load handling methods, depending on the application. Some
possibilities include single or dual shuttle, frame, robotic arm, or extractor load transfer
methods. Speed options can vary from manufacturer to manufacturer, model to model, as can
dimensional variables. One key feature of mini-load AS/RS is that it maximizes the cube,
saving space while increasing throughput. Systems can range from 10' to 50' (or even higher
in some cases). Mini-load can offer a narrow footprint, as well, saving space horizontally.

Unit Load Automated Storage and Retrieval Systems: AS/RS for Palletized Loads

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Automated storage & retrieval for unit loads

Unit load is the material handling term for any configuration of materials that allow it
to be moved by material handling equipment as a single unit. Typically, this means pallet
loads, but can apply to containerized loads.

b) Sorting Transfer Vehicles (STV's)

Smooth, quiet, and faster than conveying systems

• Easy programming and inventory control

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STV's feature onboard microprocessor control with no complex programming
functions. Simply define the layout to the controller and it directs the STV where to
go and what to do.
• Flexible layout options
STV's give your flexibility using a straight or L-shaped layout, or as a single- or
multi-vehicle continuous loop. Standard modular components can be easily
configured to meet a variety of building layout, space, and performance requirements.
What's more, several independent STV systems can be controlled using the same
controller, even on separate floors.
• Ready for expansion
STV systems are designed to grow right along with you. As your operating volume
increases, simply add STV's to the system to increase capacity. You can also expand
your STV layout using the existing modular power supply and connecting new
components to the existing track and input/output stations as needed.
• Efficient sortation
STV's can sort loads to different delivery stations without the complex conveyor
intersections that can hamper throughput. And because STV's are bi-directional, they
can receive loads as well as deliver them.

Automated Guided Vehicles

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AGVs offer a variety of flexible
configurations for nearly any material
handling function

AGVs are automatically-programmed vehicles that drive to pre-planned points and

perform pre-programmed functions. Basic AGV classifications include Tow Type (for
pulling carts & trailers), Unit load, which are the type listed in our performance reports
above, which carry pallet or other container loads on decks, fork type that utilize a fork or
mast, commercial/office type, and heavy carrier type for huge, heavy loads. Functions include
navigation/guidance, routing, traffic management, load transfer, vehicle management, and
system management. Guidance system may consist of a wire embedded in the floor, special
tape, laser and optical system. Most effective where highly repetitive tasks are performed
over extended distances. The variety in configurations of AGVs is endless; virtually any type
of material handling equipment can be converted to an AGV.

Compare between the AS/RS and other method.

Ultimately, value is created when facility or warehouse processes are made more
efficient or eliminated altogether by the type of storage method employed. When comparing
automated pallet handling methods such as AS/RS (automated storage/retrieval systems) or
HDDS (high-density dynamic storage systems) to standard rack or drive-in rack methods, the
entire discussion is typically reduced to a capital basis. Little or no consideration is given to
the ongoing operating costs or potential capital avoidance.

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A reason people like to use 'cost per position' when discussing storage methods may
be that it is easier to talk about equipment as a simple unit of measure. However, using 'cost
per position' is not always a complete measurement. What needs to be considered is the entire
operation using a total system view, taking into account all the process elements incorporated
and their associated costs.

A significant area in a comparison between the automated pallet handling and manual
methods is the one-time facility costs of the land and building. It can be argued that the
capital avoidance in the building footprint and related costs such as land purchase can be as
much as 50%, depending on the automated pallet handling technology employed. In addition,
equipment such as fork trucks and dock doors can also be reduced by as much as 50%.

Operating costs have a similar relationship to value creation, and the potential to
increase the productivity of shipping and receiving activities via automation can be as high as
300%. The manual storage, replenishment and staging functions in many cases can be
completely eliminated. Other pertinent operating savings exist; reduced damage from
multiple handling, lower utilities including the high cost of refrigeration in freezers, and even
ancillary areas such as drop-lot costs can be reduced in the faster-turn automated
environment.

The unit measure of comparison for warehousing alternatives should not be

oversimplified by the 'cost per position' approach. Both capital and operating cost information
must be analyzed so that the more realistic measure of 'cost per pallet through' can be
compared. The bottom line difference can be substantial.

A. CAPABILITY, LIMITATIONS, AND SUITABILITY

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Automated Storage and Retrieval Systems (ASRS) are typically used in applications
where there is a very high volume of loads being moved into and out of storage where storage
density is important because of space constraints, and where no value adding content is
present in this process. They are used widely in both manufacturing and distribution
operations to hold and buffer the flow of material moving through the process to the ultimate
end user. Most systems operate in a fully automated mode with little or no human
involvement in the handling of material except at the controlled input and output stations to
the system. This results in extremely high inventory accuracy.

Benefits of ASRS:

• Reducing product loses from handling damage, locations errors, and theft.

• Controlling and updating inventory management.

• Improves product quality and productivity. Real time information, faster response to a
need, physical protection, and traceability of material access all contribute to a better
process where time can be spent on improving the quality of the process instead of on
expediting material to a point of use.

• Reduces work-in-progress inventory. Better inventory accuracy and better

responsiveness to need result in reduction or elimination of “safety stock” in the
overall inventory model.

• Provides real-time inventory control with instant reports. With near 100% accuracy
and real time information about the inventory on hand, achievable commitment can be
made.

• Bringing material to the operator cutting cycle time by eliminating wait, walk, and
search time.

• Improving control of material and eliminating excessive and repetitive handling of

material.

• Minimize downtime and extend the service life of the overall system.

• Providing facilities for business growth.

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• Improving operator productivity

• Saving energy

• Greater flexibility to accommodate changing business condition.

• Reducing inventory storage cost as vastly improved warehouse space utilization of

real estate.

• Operating 365 days a year

• Improving safety, security, and work environment.

• Automation of the entry and exit operations of products.

• Removing personnel from difficult working conditions ( such as cold food storage
environments )

• Reduce labour cost by lowering necessary workforce requirements.

• Swift payback of investment

Limitations of ASRS:

• Higher maintenance coat than typical lift trucks.

• Steep cost of downtown: the warehouse operation comes to a complete halt

• Low tolerance to discrepancies due to mechanization.

• High capital investment

• Reduce flexibility of the warehouse

B. APPLICATIONS

There are various ASRS concept that may be combined to achieve cost effective
solutions within the framework of the objective that have been established for the application.
ASRS concepts incorporate the following primary functions:

Storage
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Input/output
Function Order Picking
Function

i) Storage Function

Storage function may be accomplished in a variety of ways according to the

application requirements. For example, a unit load is any load configuration handled as a
single item. The Unit Load Storage methods are expressed in a variety of rack
configurations. ASRS system can be built with one box one each side of the aisle (single
deep) or with two boxes one each side of the aisle (double deep). Single depth offers a single
box location in the racking. It offers maximum entry and extraction speed boxes. Single deep
storage is ideal for companies that give priority to speed and flexibility of the system over
total storage capacity. All the boxes have direct access, and so it is used mainly when the
products stored are all of the same category and level of consumption and there is usually no
more than one box per reference or SKU. Double deep storage offers two boxes depth per
location. It is ideal for companies that require a balance between storage capacity and speed
of handling. Furthermore, the work-in-progress storage also helps to manage WIP in factory
operations, supports JIT manufacturing strategy, kitting of parts for assembly and enables
buffer storage between operations with different production rates.

ii) Input/output Function

Input/output function is most commonly performed by conveyors, fixed P&D Stations

or Automated Guided Vehicle Systems (AGVS). Conveyors are fixed path handling systems
that carry, queue and position loads for transfer to and from S/R Machines. Fixed P&D
Stations are locating fixtures for inter-face with S/R Machines. AGVS are independently
powered driverless vehicles used to carry loads to and from P&D Stations. Unit load ASRS
and deep-lane ASRS are used to performed this function.
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iii) Order Picking Function

Order picking function implies the selection of less-than-unit load quantities of

material for individual orders. The order picking function, therefore, may not be included in
some systems. The system that performed order picking function are mini load ASRS, man-
on-board ASRS, and item retrieval system. There are two basic methods of order picking:
either the operator is moved from location to location to select material for an order or
materials are bought to the order selector.

C. EXISTING USERS AND THEIR EXPERIENCE

Dell Inc.

Within 20 years, Dell became the computer industry leader; build desktop computer
models “OptiPlex” and “Dimension”, specifically to meet customer requirements ate the rate
of 15,000 to 20,000 computers each day. So that, the ASRS system are using to sorts
completed products to be transported from the build, test and boxing area to either direct-ship
or to staging in the ASRS Buffer, in the case of a multi-unit order. The Automated
Storage/Retrieval System buffers about 3000 system cases in 6 twin-shuttle S/R machines.

Logistic Network Inc.

Logistic Network founded in April 2004, after acquiring 20 distribution centres

belonging to Nichirei Holding Groups. Logistics Network is the largest company in the
industry and in 2005, Logistics Network develop a high-capacity DC containing a large area
for storing fresh and freezer foods and also a staging area for store delivery. They are using
high capacity system to supports small-lot delivery with two floors with a TC (cross docking
type) function on the first story and a centralized and enhanced DC (inventory type) function
on the second. To control product quality and different temperatures together, refrigerator
and freezer sections were added to delivery trucks and an operation control system using
GPS was introduced.

ARUP Laboratories

ARUP Clinical Laboratories was formed in 1984 as an independent, full service

reference laboratory by the Department of Pathology at the University of Utah Health

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sciences Centre. The rapid increase in demand for esoteric specimen testing has pushed
ARUP’s annual growth rate from 1994-2003 up to 18 percents. With growth expected to
reach 50,000 specimens by the year 2012, automation has played a key role in ARUP’s
ability to keep up with industry growth, which is expected to continue for the next decade or
two. After that, they are decided to use automated transport and sorting system transport and
sort 22-26,000 new specimens a day. An additional 80 percents of that volume is returned to
the track each day to route for additional test or for storage on the Motoman Storage
AutoSorters, bringing the total daily volume on the track system to 40-45,000. After
implement ASRS system the track has a capacity of 7,000 new tubes/hour or >10,000/day.
Besides, the Storage AutoSorters can each store > 1,100 tube per hours. Now, ASRS
retrieval time for any single tube is < 2.5 minutes. So that, ASRS system has achieved highly
significant improvements in TAT, quality, and efficiency from the application of automation.

4.0 PRE-REQUISITE BEFORE IMPLEMENTATION

Before implementing an ASRS, the following things that a company should be considered
are:

• Definitions of the load to be handled

• Number of loads to be stored

• Material flow description

• Description of operations

• Architectural/Engineering consideration

• Plans for future expansion

And below is the explanation about all the following things that have been showed before;

1. Definitions of the load to be handled

Handling of the load outside and within the ASRS must be considered. Overall
dimensions and weight of each load configuration must be defined first. The essential
characteristics of the load are can be transferrable by the SR Machine, storable in the ASRS
racks, and transportable outside the ASRS System. Although SR Machines may handle more
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than one load configuration, commonality of load base configuration leads not only to
simplicity of equipment and controls, but also to efficiency of space utilization. Commonality
may be achieved through the use of slave pallets or containers to provide a uniform base
where uniformity might otherwise be unobtainable.

2. Number of loads to be stored

The number of loads to be stored, or the storage capacity, must include current
requirements and future growth. Cube utilization or packing densities for the proposed
system must be considered before implementing an ASRS.

Cube Utilization Packing Densities

3. Material flow description

Material flow description should include a definition of all sources and destinations of
materials, the average and peak rates of movement, and description of operator tasks and
times. Discontinuities, points of congestion and any queues must be considered in detail.

4. Description of operations

The next logical steps are to describe the operations needed to accomplish the desired
material flow. This also should include the essential elements of the record keeping system.
Operations involving human operations are often the most critical and very careful

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description of these tasks is a key element of successful system design. Besides, it is
important to define equipment control and data processing tasks at the earliest possible time.
The element that ties all system components together to perform as one entity is SYSTEM
CONTROL. System control not only refers to the control of equipment, but to the control of
materials and also its flow. The correlation of equipment control and also information control
is the key to material control. Material control means knowing exactly where material is
located, knowing status, and being able to get it where it is needed exactly when it is needed.

The achievement of improved material control is one of the most important objectives
served by ASRS. And to achieve effective system operation equipment reliability, operator
malfunctions and interruptions is related operations that must be considered. Back-up modes
of operations including detection and correction of multifunction are very important.
Automatic control should be designed for the highest level of reliability and should be backed
up by emergency levels of control including manual operation. The selection of back-up
modes of operations requires a very careful consideration of the real ability of a given option,
particularly its relationship with record keeping system. Besides, it is very important to
consider equipment reliability, to anticipate operator and equipment multifunction, their
detection and correction, and planned up modes of operation.

5. Architectural/Engineering consideration

System design is often constrained by architectural and site considerations.

Knowledge of applicable design and construction and specifications is essential to the design
process. If the system is to be located within an existing facility, floor condition and location
of utilities may be governing considerations. If a new facility is to be built, special
considerations of site dimensional limits, locations of utilities, and code restrictions is
required.

6. Plans for future expansion

The useful life of ASRS systems may substantially exceed the predictable range of
business forecasting. Therefore, decision for upgrading or expanding the system should be
included not only in physical layout, but also in the controls of information systems. An
important aspect of any expansion or upgrading plan should be consideration of the logistics
of integration of the expansion into existing operations with minimum disruption or loss of
production. Many existing ASRS systems have been upgraded without expansion of physical

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facilities to incorporate new control and record keeping technology after several years of
service. Changing technology, therefore, need to not be viewed as a factor leading to rapid
obsolescence of an ASRS system, but as a future benefit that may be incorporated at a
fraction of the cost of new equipment when the technology appears.

5.0 ESTIMATED COST FOR ASRS

A hypothetical configuration for implementation ASRS will be discussed in this section.

Rack Structures

Our group are agreeing to make estimation for rack consists of 15 bays and 15 tiers.
Cells are single deep and are designed for 40’ containers. Each cell has a width of 44’, a
height of 12’, and a depth of 11’. Each aisle is 10’ wide, and a P/D stand is located at the end
of aisle.

The net dimensions of each module are:

Length: [(11) x (44)] + 44 = 528 feet

Width: [(2) x (11)] + 10 = 32 feet

Height: [(11-1) x (12)] + 2 =122 feet

The total net area required for each module is less than 15000 square feet while it can
store 300 forty feet containers. Given such a system, the space utilization key variables are
measured as follows:

- Gross area assigned per ASRS module: 15000 sqft

- Forty feet containers stored per module: 300

- Forty feet containers stored per 10000 square feet: 153

However, the actual cost data are not available. The rough-cut cost estimate is around
RM11 million for each module.

Storage and Retrieval Machine

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A machine of approximately 90’ high and designed to handle loads of 50000 lbs would likely
to have a dead weigh of approximately 160000 lbs including the live load. The total load
could approach 300000 lbs. The estimates cost can be around at RM40 million per each
machine.

6.0 BUYER GUIDE

There have a lot of competing demands that using the limited capital investment
dollars in business environment. Analysis of economic justification is the key to management
acceptance for any project. ASRS consistently received their funding approval in a wide
range of business by showing favourable return on investment.

The details of the justifications process are peculiar to each corporation and may vary
among divisions. However, there have many common data which is should be considered for
each alternative approach. Capital benefits of ASRS arise from significant reductions in floor
area and often from construction economics found in rack supported structures.

Integration of manufacturing functions with ASRS may magnify these benefits by

eliminating floor storage at machining, fabrication, or inspection station by eliminating
vehicles aisles and aisle intersections and by shortening paths of material flow. Reduced
heating and lighting facilities may also help to offset ASRS equipment costs.

The ability to plan for extended economic life of equipment beyond the six years
common to other material handling equipment must also be considered. Many ASRS have
been refitted with new controls and rebuilt machines after ten years of services at a fraction of
the cost of new equipment while yielding the benefits of new technology.

Other than that, the variable and continuing annual costs need to be measured for each
alternative are include but not limited to:

1. direct and indirect labour

2. efficiency of building occupancy

3. inventory carrying cost and audit cost reduction

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4. taxes and depreciation

5. maintenance costs

Direct and indirect labour

This cost should include not only wages but also fringe benefits which may amount to 1/3 of
wages or more. The reduction of direct labour will influence the indirect labour for example
data processing, accounting and others. The automation of storage and retrieval operations
may permit a significant reduction in paper work.

Efficiency of building occupancy

The efficiency of building occupancy means conversation of energy as well as intensives use
of floor area available for adding value to product. Continuing benefits may be measured by
rents not paid for off-site facilities by increased value of sales per square foot of plant
occupied and by investment deferred because unproductive space is reclaimed for expansion
of productive effort.

Inventory carrying cost and audit cost reduction

Studies indicate that average carrying costs of inventory are about 30% of value on an annual
basis. Perhaps the most dramatic savings are to be realized from a simple reduction of
inventory value. Carrying cost may range as high as 43% of value per year. Excess
inventories include inventories on hand considerably in advance of need, investors segregated
for manufacture considerably in advance of need, inventories known to be received but not
locatable, inventories inaccessible because paperwork is not process, inventory in excess of
that needed for insurance against shrinkage and inventory of partially completed products due
to material shortages.

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Taxes and depreciation

The intimate relationship between rack structure and machines is likely to allow the whole
system to be depreciated as machinery rather than as a building. Even the wall panels and
roof of rack supported buildings may qualify for these tax incentives. Depreciation cash flow
multiplied by the basis income tax rate may be use to estimate savings.

Maintenance cost

The maintenance skills required by ASRS are common to those required for high technology
manufacturing equipment. The reliability of ASRS and related equipment, even severest duty
cycles is a proven positive factor. Careful assessment of relative maintenance costs of
competitive technical approaches to storage solutions is vital to justifications analysis.

7.0 ADDITIONAL INFORMATION ABOUT ASRS

There have some benefit for the company that using the ASRS. One of the benefit is
the company can reduce their work in progress inventory because as we known the better
inventory accuracy, the better responsiveness that we need in result reduction and elimination
of ‘safety stock’ in the overall inventory model. This has been effect of inventory reduction.

Other than that, the benefit that companies get is it can increase the productivity of
operator. The ‘part to picker’ model of order fulfilment is from 3 to 5 times be more
productive that having the picker travel to the part to complete the fulfilment.

ASRS also include the benefit of improving the product quality and the productivity.
The real time information and the faster response to be need, physical protection, and
traceability of material access all contribute to a better process where the time can be spent on
improving the quality of the process instead of an expediting material to a point of use.

Besides that, ASRS benefit also includes to provide a real time inventory control with
instant report. With near 100% accuracy and real time information are about the inventory on

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hand, achievable commitments can be made to customer as opposed to ‘best efforts
promises’.

REFERENCES

http://www.jervisbwebb.com/Categories/AutoStorRetr.aspx?cid=4

http://www.cisco-eagle.com/material-handling-systems/asrs-systems

http://www.answers.com/topic/automated-storage-and-retrieval-system#ixzz1JFbJShMO

http://www.wikipedia.com

http://www.aw-systems.com/automated-storage.htm

http://invsee.asu.edu/srinivas/spheresmod/determination.html

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MINUTES MEETING

1st Meeting

• Date/Day - 25/03/2011 (Friday)

• Time - 10.00 pm – 12.00 pm

• Venue - 228, WA3, Kolej Datin Seri Endon

• Group Members - 1) Siti Salwah binti Tukimin

2) Marliani binti Sulaiman

3) Nor Faiezah binti Abd Malik

4) Atiqah binti Abu Hassan

• Matters Discuss - Go through about the outline given by Mr.Farid.

- Inaugurate Siti Salwah as the group leader.

- Discuss and briefing about what topic that want to choose

from the 10 topics.

- Give group members time and space to choose their own

favorite topic, and will be discuss about it in second meeting.

- Set the date and time for second meeting.

2nd Meeting

• Date/Day - 27/03/2011 (Sunday)

• Time - 9.00 pm – 12.00 pm

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• Venue - 228, WA3, Kolej Datin Seri Endon

• Group Members - 1) Siti Salwah binti Tukimin

2) Marliani binti Sulaiman

3) Nor Faiezah binti Abd Malik

4) Atiqah binti Abu Hassan

• Matters Discuss - Every group member presented their chosen topic.

- To make it more fair, so group decided to make voting.

- Decided to choose Automated Storage and Retrieval System

(ASRS) topic as the main topic.

- Make a simple briefing about what are Automated Storage

and Retrieval System (ASRS).

- Set the date and time for third meeting.

3rd Meeting

• Date/Day - 01/04/2011 (Friday)

• Time - 10.00 am – 12.00 pm.

• Venue - Level 2, PSZ, UTM

• Group Members - 1) Siti Salwah binti Tukimin

2) Marliani binti Sulaiman

3) Nor Faiezah binti Abd Malik

4) Atiqah binti Abu Hassan

• Matters Discuss - Distribute the works for each group members.

- Set the date and time for fifth meeting.

4th Meeting
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• Date/Day - 05/04/2011 (Tuesday)

• Time - 3.30 pm – 5.00 pm.

• Venue - 228, WA3, Kolej Datin Seri Endon

• Group Members - 1) Siti Salwah binti Tukimin

2) Marliani binti Sulaiman

3) Nor Faiezah binti Abd Malik

4) Atiqah binti Abu Hassan

• Matters Discuss - Try to help group members that is not understand about their

part.

- Search from an internet, from some books that is related

about the topics.

- Divided the information that was get to each group members

and group member seems to be clear what they have to do.

- Set the date and time for fifth meeting.

5th Meeting

• Date/Day - 14/04/2011 (Thursday)

• Time - around 12 pm.

• Venue - Mr. Farid rooms, Faculty of Mechanical.

• Group Members - 1) Siti Salwah binti Tukimin

2) Marliani binti Sulaiman

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3) Nor Faiezah binti Abd Malik

4) Atiqah binti Abu Hassan

• Matters Discuss - Meet Advance Manufacturing lecturer, Mr. Farid, to ask him

some confusion about the assignment.

- Siti Salwah asks about how to find the estimated cost for
ASRS.

- Atiqah ask about what is pre-requisite topics is about.

- Mr. Farid let to borrow one previous report from senior.

- Everybody seems satisfied and clear what their topics.

- Confirm the date to combine work.

6th Meeting

• Date/Day - 20/04/2011 (Wednesday)

• Time - 1.00 pm – 5.00 pm.

• Venue - 234, WA3, Kolej Datin Seri Endon.

• Group Members - 1) Siti Salwah binti Tukimin

2) Marliani binti Sulaiman

3) Nor Faiezah binti Abd Malik

4) Atiqah binti Abu Hassan

• Matters Discuss - Combine all the work from each group members.

- Make a cover pages, table of contents.

- Grammar and spelling checking.

- Sent the report to the lecturers’ room.

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