2. What is warehouse?
A location with adequate facilities where
volume shipments are received from production
center, then broken-down , reassembled into
combinations representing a particular order &
shipped to customer.
A storage structure constructed for the
protection of the quality and quantity of the
stored produce.(GOI)
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4. Warehouse is for-
For ensuring a continuous , uninterrupted supply
of goods in market areas.
To provide adjustment between the production &
use of product.
Transportation consolidation; Product mixing;
Docking; Service; Protection against contingencies
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5. Latest concept of warehouse
A location where input (incoming factory
shipments) are converted to outputs (outward
shipments & orders).
Its need arise due to the time gap between
production and consumption of products
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8. What could be stored?
Raw materials
WIP (work in progress)
Consumable stores
Spare parts
Ready made components
Finished goods
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9. Need of warehouse
Regular supply
Quality of delivery
Stock of trade
Price stabilization
Seasonal products
Perishable goods
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Continuous
production
Large scale
production
Quick supply
Easy handling
Protection &
preservation
10. Location of warehouse
• Service area.
• Transportation facility.
• Availability of power, water, gas, wastes etc.
• Labour supply & cost.
• Existing facilities of company.
• Climate & labour productivity.
• Real estate, excise & government taxes.
• Local residents & government.
• Potential for later expansion and operations.
• Cost of land & other costs.
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13. PRIVATE WAREHOUSE
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• OPERATED by a company for shipping and storing its own products
• OWNED AND MANAGED- manufacturers or traders
• CONSTRUCTION- Farmers near their fields, Wholesalers and
Retailers near their business centers' and manufacturers near their
factories
• COMPANIES – Stable inventory levels and long run expectations
• SUITABILITY- Firms that require special handling and storage
features and want to control design and operation of the
warehouse
14. PUBLIC WAREHOUSE
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14 • Provide storage and physical distribution services on rental basis
• Used by SMALL FIRMS and LARGE FIRMS
• Organizes to provide storage facilities to traders, manufacturers,
agriculturists in return for a storage charge
• Licensed by Govt. (Central Warehousing Corporation, State
Warehousing Corporation, FCI)
• SUITABILTY – seasonal production or low volume storage needs,
companies with inventories maintained in many locations, firms
entering new markets
• OWNER –stands as an agent of goods
15. Types of warehouses :
Field warehouses
Distribution warehouses
Bonded warehouses
Cold warehouses
Agricultural warehouses
Buffer warehouses
Export & Import warehouses
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16. Characteristics of ideal warehouse:
Convenient location
Appliances to load & unload goods.
Adequate space and proper utilization.
Cold storage facilities for specific products.
Proper arrangement for protection.
Sufficient parking area.
Round the clock security.
Fire fighting equipments.
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17. Maximize productivity & minimize cost
Maximize use of space
space is the largest capital cost
Effective use of labor & equipment
labor is the largest operating cost
material handling equipment is the second
largest capital cost
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18. WAREHOUSING
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Ideal Facility for Pure Supplier Consolidation
(Full Pallet Movement)
Warehouse Space General Layout
DESIGN CONSIDERATION
20. FACTORS INFLUENCING
EFFECTIVE USE OF WAREHOUSES
• Cube utilization and accessibility
• Stock location
• Order picking and assembly
• Physical Control & Security - Elements
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21. Cube utilization and accessibility
Goods stored not just on the floor, but in the
cubic space of the warehouse.
Warehouse capacity depends on how high
goods can be stored.
Accessibility means being able to get at the
goods wanted with a minimum amount of work
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23. Stock Location
• Objectives
1. To provide the required customer service
2. To keep track of where items are stored
3. To minimize effort to receive, put away, and retrieve items
• Basic Stock Locating Systems
1. Group functionally related items together
2. Group fast-moving items together
3. Group physically similar items together
4. Locate working stock and reserve stock separately
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24. Stock Location
Fixed Location
assigns a permanent location & no other items are stored
there
poor cube utilization
Usually used in small warehouses
Floating (Random) Location
Goods stored wherever there is appropriate space
improved cube utilization
requires accurate and up-to-date information
Usually computer-based
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25. Order Picking and Assembly
When an order is received, items must be
obtained from the warehouse, grouped, &
prepared for shipment, systems used
• Area system
• Zone system
• Multi-order system
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26. PHYSICAL CONTROL & SECURITY - ELEMENTS
o Good part numbering system
o Simple, well-documented transaction system
1. Identify the item
2. Verify the quantity
3. Record the transaction
4. Physically execute the transaction
o Limited access
Inventory must be kept in a safe, secure
(locked) place with limited general access
o Well-trained workforce
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27. Benefits
Maximum usage of available floor space and building height
More storage capacity
Less land and smaller building
High productivity
Operate faster -24 hours a day, 7-days a week
Efficient flow of materials
Provide buffer storage functions
Need for drivers/operators eliminated
Risk of injury minimized by safety fences
Reduce stockholdings
Inventory accurately tracked at all stages
Ongoing operating costs eliminated
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28. Demerits
• Poor market coverage
• Distant market demand not met in short notice
• Transport cost maximum unless in bulk quantity
• Increased material handling cost
• Possibility of bottlenecks and resultant delays
• Greater danger of loss by fire
• Delay in customer service
• Huge investment in inventory
• Chances of stock-out situation is high
• Huge warehousing developments costs
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29. Modern Trends:
• Just In time
• RFID(Radio Frequency
IDentification)
• Warehouse type retail store
• Internet based stores
• Automated handling
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Soft wares :
• 3PLink
• Visual Logistics WMS
• LoMag
• RF Pathways
• SIMMS
• ATEC-WM
• Advantage Suite
• Autostore
• TECSYS
• SAP
• JDA software
• epicor
31. Questions:
What is the latest concept regarding storage in
warehouses?
List out difference in public and private warehouse.
What are the factors influencing the effective use of
warehouses?
What are different types of warehouse? Explain any
three.
How the processing of inventory or goods occur in
warehouse? Explain in sequential manner.
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