This document discusses warehousing and warehouse operations. It defines a warehouse as a location for receiving, storing, and shipping goods. Warehouses serve several purposes like ensuring continuous supply, adjusting production and consumption, and providing protection. The document outlines different types of warehouses like public, private, bonded, and cold storage warehouses. It also describes key warehouse operations like receiving, storage, order picking, and shipping. Finally, it discusses factors that influence effective warehouse use such as stock location, cube utilization, order picking, and physical control/security.

1. WAREHOUSING
Akash Deep Maurya
MT14IND002
M. Tech. (Industrial Engineering)
2014-2015
DEPARTMENT OF MECHANICAL
ENGINEERING
VNIT NAGPUR

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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3. WAREHOUSING
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warehouse
ware
manufactured
articles of a
specified type
house
a building in
which people
meet for a
particular activity.

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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6. Material storage
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7. WAREHOUSING
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Material storage

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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11. Warehousing operations:
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Receiving
goods
Identifying
goods
Sorting
goods
Dispatching
to storage
Holding
Retrieving
Marshalling
goods
Dispatching
Preparing
records &
advices.

12. Shipping
•Schedule Carrier
•Load Vehicle
•Bill of Loading
•Record Update
RECEIVING
•Schedule Carrier
•Unload Vehicle
•Inspect for
damage
INPUT
WAREHOUSE PROCESSING
Put-away
•Identify Product
•Identify Product Location
•Move Products
•Update Records
Storage
•Equipment
•Stock Location
– Popularity
– Unit Size
– Cube
Shipping Preparation
•Packing
•Labeling
•Stacking
Order Picking
•Information
•Walk & Pick
•Batch Picking
OUTPUT
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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

19. Services provided:
 Temporary storage
 Quick delivery
 Balance supply & demand
 Stock inventory for emergency
 Refrigeration
 Invoicing & collection
 Payment & distribution
 Protection against factory shutdown
 Sales promotion activities
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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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22. Cube utilization and accessibility
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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

30. References:
1. http://business.gov.in/manage_business/warehousing.php
2. http://www.slideshare.net/omarof5/warehouse-operationslayout-design-by-
omar-youssef?related=1
3. http://www.slideshare.net/WelingkarDLP/chapter-5-warehouse-management
4. http://www.capterra.com/warehouse-management-software/
5. http://www.ey.com/IN/en/Services/Transactions/EY-Summarizing-the-key-
warehousing-segments-in-India
6. http://www.yourarticlelibrary.com/marketing/marketing-
management/warehousing-function-benefits-and-types-of-warehousing/27952/
7. http://www.inboundlogistics.com/cms/article/todays-warehouse-plays-a-new-
role/
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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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