The document discusses different types of warehouses and factors to consider when designing a warehouse. It outlines the key functions of a warehouse as receiving goods, storing, order taking, and dispatching. The main types of warehouses mentioned are general warehouses, specific warehouses, bonded warehouses, bulk storage warehouses, and refrigerated warehouses. When deciding on a warehouse location, managers must choose between centralized warehouses and decentralized warehouses, weighing the benefits and drawbacks of each such as transportation costs, customer service, inventory control and market share.

1. Amity Business School MBA Class of 2010, Semester II Distribution & Logistics Management Ms.Vandana Gupta

2. WAREHOUSING

3. “ Warehousing and storage is an act of storing and assorting the finished goods so as to create maximum time utility at minimum cost” Now a days, many private firms are turning to distribution centers rather than constructing the warehouses.

4. Functions of a warehouse Receiving the goods Storing Order Taking Dispatch

5. While designing a warehouse, a manager ought to keep in mind these elements Land and Building Management and staff Operating methods and Procedures Equipment

6. Types of warehouses General warehouse Specific warehouse Bonded warehouse Bulk storage warehouse Refrigerated warehouse

7. Warehouse Location Centralized warehouse Decentralized warehouse

8. Centralized warehouse Benefits : It improves operating efficiency and inventory control is felt easier and effective There is no need to carry large stock and there are no dangers of stock outs resulting in low level inventories Transport facilities are optimally used as routing and scheduling becomes handy.

9. The firm is better placed to meet the demand fluctuations from different market segments at relatively short notice. Drawbacks: It results in loss of customer service due to spatial considerations and delays are caused. The firm is deprived of its potential market share

10. 3. It results in heavy transport costs unless each delivery is sizeable as the carrier has to cover long distance.

11. Decentralized warehouse Benefits: 1. The firm serves the customers better positioning the inventory in their proximity. This is the result of maximum time utility created by it. 2. The firm is likely to effect savings in freight charges because of bulk handling 3. It facilitates product movement by block rates

12. Drawbacks: 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 It calls for heavy investment as the firm is to hold inventory at different locations in larger lots.