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  1. 1. WAREHOUSING• A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.• They are usually large plain buildings in industrial areas of cities, towns and villages. They usually have loading docks to load and unload goods from trucks. 10-1
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  4. 4. TYPES OF WAREHOUSES• Private Warehouses• Public Warehouses• Government Warehouses• Bonded Warehouses• Co-operative Warehouses 10-4
  5. 5. Private Warehouses• The warehouses which are owned and managed by the manufacturers or traders to store, exclusively, their own stock of goods are known as private warehouses. Generally these warehouses are constructed by the farmers near their fields, by wholesalers and retailers near their business centres and by manufacturers near their factories. 10-5
  6. 6. Public WarehousesThe warehouses which are run to store goods ofthe general public are known as public warehouses.Any one can store his goods in these warehouseson payment of rent.An individual, a partnership firm or a company mayown these warehouses. 10-6
  7. 7. Public Warehouses• To start such warehouses a license from the government is required. The government also regulates the functions and operations of these warehouses. 10-7
  8. 8. Government Warehouses• These warehouses are owned, managed and controlled by central or state governments or public corporations or local authorities. Both government and private enterprises may use these warehouses to store their goods. Central Warehousing Corporation of India, State Warehousing Corporation and Food Corporation of India are examples of agencies maintaining government warehouses 10-8
  9. 9. Bonded Warehouses• These warehouses are owned, managed and controlled by government as well as private agencies. Private bonded warehouses have to obtain licence from the government. Bonded warehouses are used to store imported goods for which import duty is yet to be paid. In case of imported goods the importers are not allowed to take away the goods from the ports till such duty is paid. These warehouses are generally owned by dock authorities and found near the ports. 10-9
  10. 10. Co-operative WarehousesThese warehouses are owned, managed andcontrolled by co-operative societies.They provide warehousing facilities at the mosteconomical rates to the members of their society. 10-10
  11. 11. Warehouse operations involve two major activities – handling and storage• Objective is to – Efficiently receive inventory – Store it as required – Assemble it into complete orders – Make a customer shipment 10-11
  12. 12. Handling• Handling must optimize movement continuity and efficiency – Receiving—Unloading the arriving vehicles – In-Storage—moving goods for storage (transfer) or order selection (picking) – Shipping—verifying the order and loading the departing vehicles 10-12
  13. 13. Warehouses must manage two classes of storage• Active Storage—storage for basic inventory replenishment – Focuses on quick movement – Includes flow-through or cross- dock distribution• Extended Storage—storage for inventory held in excess of period for normal replenishment – E.g. seasonal, speculative etc. 10-13
  14. 14. BREAK: FOR A SMILE• Teacher: Correct the sentence, "A bull and a cow is grazing in the Field"• Student: A cow and a bull is grazing in the field• Teacher: How?• Student: Ladies first. 10-14
  15. 15. Warehouse management systems encourage best practices• Warehouse management systems (WMS) integrate procedures and software support to standardize storage and handling work procedures• A warehouse management system, or WMS, is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, putaway and picking. 10-15
  16. 16. WMS• Warehouse management systems often utilize ..... Auto ID Data Capture (AIDC) technology, such as barcode scanners, mobile computers, wireless LANs and potentially Radio-frequency identification (RFID) to efficiently monitor the flow of products. Once data has been collected, there is a real-time wireless transmission to a central database. The database can then provide useful reports about the status of goods in the warehouse. 10-16
  17. 17. Warehouse Automation:• Automated Storage Retrieval System (AS/RS) AS/RS is an automation system with high-rise racks that are loaded and unloaded using automatic storage machines within the aisle.• Automatic Guided Vehicles (AGVs) These can be used to transport, store and retrieve loads for warehouses, which are mainly associated with the manufacturing and shipping industries.• Carousels Automated carousels are used in warehouse to move loads to a pick-and-drop station. 10-17
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  19. 19. Advantages of Warehouse Automation.• Automating warehouse operations can be an attractive supply chain option for many businesses, offering the benefits of low-staffing requirements, efficient logistics operations and accurate service delivery. Warehouse automation also helps in reducing costs, improving productivity and accuracy, while giving complete visibility of the inventory data. 10-19
  20. 20. Importance of Handling Systems• In every manufacturing organization material handling, place an important role. Every where there is movement of either material, work in progress or finished product.• It is highly pointed out that the cost material- handling involves 40% to 50% of total production cost. Therefore considerable attention must be taken in the material handling. 10-20
  21. 21. Importance of Handling Systems Improved material handling system not only save time and cost reduction but also ensure the following:• Reduction in accidents.• Greater job satisfaction.• Reduction in inventory or & work in progress.• Increasing production.• Saving time. 10-21
  22. 22. SELECTION AND DESIGN OF HANDLING SYSTEM• Materials handling systems are expensive to purchase and operate. The expenses are those of initial costs, labor cost for operating the material handling equipments and maintenance and repair costs. The indirect expenses are those resulting from damaged or lost materials, delays in material deliveries and accidents. Since these expenses are quite substantial, greater attention of management is needed to the design and selection of materials handling systems. 10-22
  23. 23. Steps to be followed in the selection and design of materials handling systems:1. Identification of the appropriate systems.2. Review of design criteria and objectives of thehandling system.3. Collection of data regarding flow pattern and flowrequirements. 10-23
  24. 24. Steps to be followed in the selection and design of materials handling systems:4. Determination of space requirement andestablishment of material flow pattern.5. Analysis of material and building characteristics.6. Evaluation of alternatives with respect to optimalmaterial flow, utilizing gravity, minimum cost,flexibility, ease of maintenance and capacityutilization.. 10-24
  25. 25. Steps to be followed in the selection and design of materials handling systems:7. Selection of the best suitable alternative system and checking it for compatibility with the layout.8. Procurement of the equipment and installation of the system 10-25
  26. 26. SMILE: Breaking the news subtly• A man goes on a 2-month business trip to Europe and leaves his cat with his brother. Three days before his return he calls his brother.• Brother 1: So how is my cat doing?• Brother 2: Hes Dead• Brother 1: Hes Dead! What do you mean Hes Dead! I loved that cat. Couldnt you think of a nicer way to tell me! Im leaving in 3 days. You could of broke me to the news easier. You could of told me today that she got out of the house or something. Then when I called before I left you could of told me, Well, we found her but she is up on the roof and were having trouble getting her down. Then when I call you from the airport you could of told me, The Fire Department was there and scared her off the roof and the cat died when it hit the ground.• Brother 2: Im sorry...youre right...that was insensitive I wont let it happen again.• Brother 1: Alright, alright, forget about it. Anyway, how is my son doing?• Brother 2: Hes up on the roof and were having trouble getting him down. 10-26