Warehousing provides time and place utility for raw materials, goods, and finished products, allowing firms to use customer service as a competitive tool. Basic warehousing decisions include ownership, centralized vs decentralized structure, location, size, layout, and what products are stored where. Public warehouses store goods for the general public on payment of rent. Basic warehouse operations involve receiving, put-away, order picking, and shipping. Proper warehouse design considers demand forecast, order quantities, space requirements, aisle space, transportation interface, order picking space, and storage space.

2. Warehousing
Warehousing provides time and place utility (primarily
time) for raw materials, industrial goods, and finished
products, allowing firms to use customer service as a
dynamic value-adding competitive tool.

3. Basic Warehousing Decisions

4. Basic Warehousing Decisions
 Ownership
 Public versus private
 Centralized or Decentralized Warehousing
 How many
 Location
 Size
 Layout
 What products where

5. Public Warehousing
The warehouses which are run to store goods of the
general public are known as public warehouses. Any
one can store his goods in these warehouses on
payment of rent.
 Rationale for Public Warehousing
 Limited capital investment
 Flexibility

6. Basic Warehouse Operations

7. Basic Warehouse Operations
 Movement
 Receiving
 Put-away
 Order picking
 Shipping
 Storage
 Stock location
 Warehouse Management System (WMS)

8. Warehouse Layout and Design
 Develop a demand forecast.
 Determine each item’s order quantity.
 Convert units into cubic footage requirements.
 Allow for adequate aisle space for materials handling
equipment
 Provide for the transportation interface.
 Provide for order-picking space.
 Provide storage space.
 Provide recouping, office, and miscellaneous spaces.

9. Warehouse Space Requirements

10. Warehouse Layout and Design
Basic needs:
Receiving
Basic storage area
Order selection and preparation
Shipping

11. Packaging
 Unless otherwise specified, the manner in which
customer products are packaged for shipment is
appropriate for the destination, method of shipment
and weight / size of the carton.
 Customer Packaging Standards All customer-
specified packaging standards and guidelines are
followed.
 Labeling All customer-specified labeling
requirements are followed.

12. The Role of Packaging
 Identify product and provide information
 Improve efficiency in handling and distribution
 Customer interface
 Protect product

13. What Is Packaging?
 Consumer (interior) packaging
 Marketing managers primarily concerned with how
the package fits into the marketing mix.
 Industrial (exterior) packaging
 Logistics managers primarily concerned with
efficient shipping characteristics including
protection, ability to withstand stacking when on a
pallet, cube, weight, shape and other relevant
factors.

14. Bar Coding
 Standard markings that can be read by automatic or
handheld scanners that allow for labor saving
logistical activities for all supply chain members.
 Bar Codes contain information regarding:
 Vendor
 Product type
 Place of manufacture
 Product price

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