Amity Business School MBA Class of 2010, Semester II Distribution & Logistics Management Ms.Vandana Gupta
WAREHOUSING
<ul><li>“ Warehousing and storage is an act of storing and assorting the finished goods so as to create maximum time utili...
Functions of a warehouse <ul><li>Receiving the goods </li></ul><ul><li>Storing </li></ul><ul><li>Order Taking </li></ul><u...
While designing a warehouse, a manager ought to keep in mind these elements <ul><li>Land and Building </li></ul><ul><li>Ma...
Types of warehouses <ul><li>General warehouse </li></ul><ul><li>Specific warehouse </li></ul><ul><li>Bonded warehouse </li...
Warehouse Location <ul><li>Centralized warehouse </li></ul><ul><li>Decentralized warehouse </li></ul>
Centralized warehouse <ul><li>Benefits : </li></ul><ul><li>It improves operating efficiency and inventory control is felt ...
<ul><li>The firm is better placed to meet the demand fluctuations from different market segments at relatively short notic...
<ul><li>3. It results in heavy transport costs unless each delivery is sizeable as the carrier has to cover long distance....
Decentralized warehouse <ul><li>Benefits: </li></ul><ul><li>1. The firm serves the customers better positioning the invent...
<ul><li>Drawbacks: </li></ul><ul><li>It adds to the administrative cost as the firm is to manage number of warehouses dist...
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Warehousing

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  • Amity Business School
  • Warehousing

    1. 1. Amity Business School MBA Class of 2010, Semester II Distribution & Logistics Management Ms.Vandana Gupta
    2. 2. WAREHOUSING
    3. 3. <ul><li>“ Warehousing and storage is an act of storing and assorting the finished goods so as to create maximum time utility at minimum cost” </li></ul><ul><li>Now a days, many private firms are turning to distribution centers rather than constructing the warehouses. </li></ul>
    4. 4. Functions of a warehouse <ul><li>Receiving the goods </li></ul><ul><li>Storing </li></ul><ul><li>Order Taking </li></ul><ul><li>Dispatch </li></ul>
    5. 5. While designing a warehouse, a manager ought to keep in mind these elements <ul><li>Land and Building </li></ul><ul><li>Management and staff </li></ul><ul><li>Operating methods and Procedures </li></ul><ul><li>Equipment </li></ul>
    6. 6. Types of warehouses <ul><li>General warehouse </li></ul><ul><li>Specific warehouse </li></ul><ul><li>Bonded warehouse </li></ul><ul><li>Bulk storage warehouse </li></ul><ul><li>Refrigerated warehouse </li></ul>
    7. 7. Warehouse Location <ul><li>Centralized warehouse </li></ul><ul><li>Decentralized warehouse </li></ul>
    8. 8. Centralized warehouse <ul><li>Benefits : </li></ul><ul><li>It improves operating efficiency and inventory control is felt easier and effective </li></ul><ul><li>There is no need to carry large stock and there are no dangers of stock outs resulting in low level inventories </li></ul><ul><li>Transport facilities are optimally used as routing and scheduling becomes handy. </li></ul>
    9. 9. <ul><li>The firm is better placed to meet the demand fluctuations from different market segments at relatively short notice. </li></ul><ul><li>Drawbacks: </li></ul><ul><li>It results in loss of customer service due to spatial considerations and delays are caused. </li></ul><ul><li>The firm is deprived of its potential market share </li></ul>
    10. 10. <ul><li>3. It results in heavy transport costs unless each delivery is sizeable as the carrier has to cover long distance. </li></ul>
    11. 11. Decentralized warehouse <ul><li>Benefits: </li></ul><ul><li>1. The firm serves the customers better positioning the inventory in their proximity. This is the result of maximum time utility created by it. </li></ul><ul><li>2. The firm is likely to effect savings in freight charges because of bulk handling </li></ul><ul><li>3. It facilitates product movement by block rates </li></ul>
    12. 12. <ul><li>Drawbacks: </li></ul><ul><li>It adds to the administrative cost as the firm is to manage number of warehouses distantly located with the acute problem of maintaining high level efficiency </li></ul><ul><li>It calls for heavy investment as the firm is to hold inventory at different locations in larger lots. </li></ul>
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