The document discusses warehousing operations management. It defines warehousing and warehouses, and describes the major activities in warehouses as including inbound activities like receiving and put-away, process activities like picking and replenishment, and outbound activities like shipping and packing. It also discusses key aspects of warehousing like inventory management and control, storage methods, and challenges in warehouse management.
This document discusses procurement and inventory management. It defines key terms like procurement, supply, custody, accounting, and disposal. It also covers types of inventory like consumable and non-consumable, classification based on intended use, and functions of inventory management including receipt, storage, retrieval, issuing, records keeping, and control. Inventory is accounted for by recording stock movements and balances. Different inventory costs like purchase, ordering, holding and shortage costs are also outlined.
Warehousing refers to the large-scale storage of goods in a systematic manner from production until consumption. Warehouses are needed due to seasonal production and demand, large-scale production, the need for quick supply, continuous production, and price stabilization. The main types of warehouses are private, public, bonded, cooperative, and government. Warehouses provide storage, protection from damage, financing through warehouse receipts, some processing, risk bearing, and sometimes transportation. They benefit businesses by protecting goods, ensuring regular supply, enabling continuous production, providing convenient locations, and facilitating the sale of goods.
Warehousing is an important part of a company's logistics system that stores products between the point of origin and consumption. Warehouses provide time and place utility for materials and products. The main functions of warehouses include transportation consolidation, product mixing, receiving, storage, order picking, and shipping. There are different types of warehouses like public, private, and contract warehouses. Effective warehouse management considers layout, storage strategies, and productivity to minimize costs and provide good customer service.
Warehousing management System -Shitalinfotech.comShitalinfotech
The document discusses warehousing and warehouse management. It defines a warehouse as where supply chains store goods. It describes different types of warehouses and discusses key warehouse functions like receiving, storage, order picking, and shipping. It also covers important considerations for warehouse operations like facility layout, stock location systems, order picking methods, and the goals of maximizing space utilization and labor efficiency.
Part of the induction course for students undertaking diploma and degree in environmental lab science, public health, Analytical Chemistry, Applied Biology, Medical Lab Sciences and Food Technology.
The document discusses store management. It defines a store as a place where excess materials are kept for future use. Store management aims to receive, protect, issue, and track materials efficiently and at low cost. The objectives of store management are to ensure uninterrupted supply of materials without delays, prevent overstocking and understocking, protect materials from damage, minimize storage costs, and maintain proper control of materials. Key functions of store management include receipt, storage, retrieval, issue, record keeping, housekeeping, control, surplus disposal, verification, packaging, and coordination with other departments.
This document provides an overview of stores and materials management. It defines what a storehouse is and discusses the key functions and objectives of stores management, including efficient materials planning, purchasing, inventory control, quality assurance and maintaining good supplier relationships. It outlines the responsibilities of stores managers, such as maintaining low inventory levels while providing good service, identification and inspection of materials, issuing materials to users, and stock control. The duties of storekeepers are also summarized, like receiving, storing and issuing materials, and maintaining records. Finally, some common store documents like bin cards and store ledgers are described.
Store keeping involves the proper storage and distribution of materials within an organization. It is responsible for receiving, handling, and issuing materials efficiently while keeping accurate records and protecting against damage and theft. The objectives of store keeping are to allow easy location and identification of items, ensure a speedy issue of materials as needed, and utilize storage space effectively.
This document discusses procurement and inventory management. It defines key terms like procurement, supply, custody, accounting, and disposal. It also covers types of inventory like consumable and non-consumable, classification based on intended use, and functions of inventory management including receipt, storage, retrieval, issuing, records keeping, and control. Inventory is accounted for by recording stock movements and balances. Different inventory costs like purchase, ordering, holding and shortage costs are also outlined.
Warehousing refers to the large-scale storage of goods in a systematic manner from production until consumption. Warehouses are needed due to seasonal production and demand, large-scale production, the need for quick supply, continuous production, and price stabilization. The main types of warehouses are private, public, bonded, cooperative, and government. Warehouses provide storage, protection from damage, financing through warehouse receipts, some processing, risk bearing, and sometimes transportation. They benefit businesses by protecting goods, ensuring regular supply, enabling continuous production, providing convenient locations, and facilitating the sale of goods.
Warehousing is an important part of a company's logistics system that stores products between the point of origin and consumption. Warehouses provide time and place utility for materials and products. The main functions of warehouses include transportation consolidation, product mixing, receiving, storage, order picking, and shipping. There are different types of warehouses like public, private, and contract warehouses. Effective warehouse management considers layout, storage strategies, and productivity to minimize costs and provide good customer service.
Warehousing management System -Shitalinfotech.comShitalinfotech
The document discusses warehousing and warehouse management. It defines a warehouse as where supply chains store goods. It describes different types of warehouses and discusses key warehouse functions like receiving, storage, order picking, and shipping. It also covers important considerations for warehouse operations like facility layout, stock location systems, order picking methods, and the goals of maximizing space utilization and labor efficiency.
Part of the induction course for students undertaking diploma and degree in environmental lab science, public health, Analytical Chemistry, Applied Biology, Medical Lab Sciences and Food Technology.
The document discusses store management. It defines a store as a place where excess materials are kept for future use. Store management aims to receive, protect, issue, and track materials efficiently and at low cost. The objectives of store management are to ensure uninterrupted supply of materials without delays, prevent overstocking and understocking, protect materials from damage, minimize storage costs, and maintain proper control of materials. Key functions of store management include receipt, storage, retrieval, issue, record keeping, housekeeping, control, surplus disposal, verification, packaging, and coordination with other departments.
This document provides an overview of stores and materials management. It defines what a storehouse is and discusses the key functions and objectives of stores management, including efficient materials planning, purchasing, inventory control, quality assurance and maintaining good supplier relationships. It outlines the responsibilities of stores managers, such as maintaining low inventory levels while providing good service, identification and inspection of materials, issuing materials to users, and stock control. The duties of storekeepers are also summarized, like receiving, storing and issuing materials, and maintaining records. Finally, some common store documents like bin cards and store ledgers are described.
Store keeping involves the proper storage and distribution of materials within an organization. It is responsible for receiving, handling, and issuing materials efficiently while keeping accurate records and protecting against damage and theft. The objectives of store keeping are to allow easy location and identification of items, ensure a speedy issue of materials as needed, and utilize storage space effectively.
The document discusses various aspects of warehouse management including types of warehouses, warehouse activities, storage layout and stock location planning. It describes how warehouses can serve different missions like factory warehouses that hold inventory to balance production and demand. The key activities in warehouses are receiving goods, identifying items, dispatching to storage, order picking and shipping. Effective warehouse management requires selecting appropriate equipment and layout to optimize space utilization and efficient material handling.
Stores management is part of the overall function of materials management. In order, therefore, to understand the function of the former it is desirable to have a clear understanding of what materials management stands for.
According to Alford and Beatty “storekeeping is that aspect of material control concerned with the physical storage of goods.” In other words, storekeeping relates to art of preserving raw materials, work-in-progress and finished goods in the stores.
Successful inventory management involves creating a purchasing plan that will ensure that items are available when they are needed (but that neither too much nor too little is purchased) and keeping track of existing inventory and its use.
Warehouse logistics involves planning, organizing, and managing all operations within a warehouse. This includes inventory management, shipping and receiving, safety policies, and human resources. Effective warehouse logistics is key to running warehouse operations smoothly. Implementing a warehouse management system is important for improving warehouse logistics by providing real-time inventory visibility, optimizing processes, and increasing efficiency. However, warehouse logistics are influenced by human factors like employee training and changes within the physical warehouse, so ongoing adaptation is needed.
The document discusses store management and various aspects related to it. It defines store management and outlines key objectives like minimizing production costs and maintaining material value. It describes important store functions such as receipt, storage, retrieval, issue, records keeping, and control. It also discusses centralized and decentralized store models and factors affecting store layout. The overall purpose of store management is to receive, store and issue materials efficiently at lowest cost.
This document provides guidance on effective store and inventory management. It outlines key objectives and responsibilities of storekeepers including understanding inventory principles, record keeping, and maintaining stock levels. The document describes best practices for core warehouse activities such as stock receipt, storage, issuance and record keeping. It also discusses inventory control systems and how to assess stock status. The goal is to provide timely customer service while minimizing costs and protecting inventory through proper care, storage, and security of the warehouse and stock.
The document discusses the processes of food and beverage procurement, receiving, storage, and inventory management in the hospitality industry. It defines key terms, outlines the various steps in purchasing and receiving processes, and provides guidelines for proper food storage and inventory control methods. Maintaining accurate records at each stage of the supply chain is emphasized as important for cost control and ensuring food quality and safety.
This document discusses material management and inventory in manufacturing. It covers key aspects like the purpose of inventory, types of inventory, reasons for holding inventory, and functions of the stores department. The document compares high and low inventory levels and discusses approaches to stores location, recording material, issuing material, and centralized vs decentralized storing. The overall aim is to ensure smooth material flow and quality control to reduce costs and meet production needs.
This document discusses various aspects of managing medical stores and warehouses, including objectives, activities, design principles, systems, classification, storage, and handling of materials. The key points are:
1. The objectives of medical stores are to receive, store, and distribute materials to meet user demands while minimizing waste through proper inventory control and storage methods.
2. Effective materials management involves planning, purchasing, receiving, inventory control, standardization, and disposal. Computerized stock records and communications between facilities are important.
3. Proper warehouse design considers product movement, handling technology, storage plans, and future expansion. Classification systems and fixed, fluid, or semi-fluid location methods determine how items are organized within zones and
Store management involves receiving materials, protecting them from damage and unauthorized removal, issuing materials in the right quantities at the right time and place, and providing these services promptly and at lowest cost. The key functions of a store include receipt, storage, retrieval, issue, record keeping, housekeeping, control, surplus management, verification, and coordination with other departments. Stores can be organized as centralized or decentralized systems, with tradeoffs between control/efficiency and transportation/handling costs.
The document discusses stores management in hospitals. It covers key topics like the functions and importance of stores, factors to consider for location and layout of stores, storage methods, and codification of items. The main points are:
1. Stores play a vital role in hospital operations by providing supplies to user departments and ensuring uninterrupted services. Proper storage, inventory management, and issue of items are some core functions.
2. Important factors for stores location include proximity to user departments, volume and variety of goods, and accessibility. The layout should allow for easy movement of materials and optimal space utilization.
3. Codification involves representing each stored item with a unique code for identification. Various systems group items
Warehousing involves storing products between the point of origin and consumption. Warehouses play an important role in logistics by providing time and place utility for materials and products. The main functions of warehousing include transportation consolidation, product mixing, receiving and shipping goods. There are different types of warehouses like public, private and contract warehouses. Designing an efficient warehouse requires considering factors like layout, storage locations, order picking and security. Key activities in warehouse management include receiving and inspecting inventory, identifying products, storing goods, order picking, assembling shipments and dispatching orders.
This document provides an overview of warehousing. 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. They can store various materials like raw materials, work-in-progress, spare parts, and finished goods. Key warehouse operations include receiving, storage, order picking, and shipping. The document also discusses types of warehouses, factors for effective warehouse use, and modern warehouse trends like just-in-time and RFID technologies.
Effective store keeping and successful inventory control.2Tajudeen Wahabi
Store keeping involves accounting for stock including raw materials, work-in-progress, finished goods, and some fixed assets. Materials are received through various modes of transportation and verified before being accounted for in stores. Different machines like forklifts and overhead cranes are used to carry and store heavy materials. Once materials are received, a goods receipt note is prepared to record the receipt and enable supplier payment. Materials are stored properly according to type in various stores and sub-stores for security, easy retrieval and handling. Inventory management aims to maintain adequate supply to meet demand while minimizing total costs of holding, ordering and shortage. Key terms include maximum limit, minimum limit, reorder level, and safety stock.
Objectives:
Identify the various functions and responsibilities of the warehouse/stores function.
Identify the various costs associated with holding or not holding inventory.
Describe and contribute in the design of an effective warehouse
Explain how to measure the performance of a warehouse
Warehousing involves storing products between the point of origin and consumption. Warehouses play an important role in logistics systems by providing time and place utility. The main functions of warehouses include transportation consolidation, product mixing, docking, service, and protecting against contingencies. There are different types of warehouses like public, private, and contract warehouses. Designing an efficient warehouse requires considering space requirements, layout, and processes like receiving, storage, order picking, and shipping. Key factors that influence effective warehouse operations are cube utilization, stock location systems, order picking methods, and security controls.
This document discusses store management and inventory control. It defines a store as a building where goods are kept for receiving, storing, and issuing materials. The key functions of a store are to receive raw materials, provide proper storage and preservation, meet demand from production departments, and minimize obsolete inventory. There are two main types of stores: centralized stores, which store all items in one central location, and decentralized stores, which store materials closer to points of use. The objectives of inventory management are to ensure continuous supply of materials for production and sufficient finished goods for sales while minimizing costs and obsolete inventory.
A warehouse is used to store goods and materials. Warehouse storage systems include storage cabinets, pallet racks, mezzanine levels, and automated equipment. These systems provide benefits like organization, safety, space and time savings, and high storage density. Common storage methods involve cabinets, pallets on racks, and mezzanine levels to maximize vertical space. Automated systems can operate equipment automatically.
This document provides guidelines and recommendations for managing inventory and fixed assets to prevent corruption. It discusses dividing tangible assets into inventory and fixed assets. Inventory includes goods for sale or production, while fixed assets are for staff use like computers and vehicles. Past cases show stores management is vulnerable to corruption through theft or collusion. The guidelines aim to minimize these risks with a user-friendly process. It recommends separating duties for purchasing, inventory control, and record-keeping. Strict procedures are outlined for receiving, storing, issuing, and disposing of inventory and fixed assets. Regular inventory checks and inspections are also advised to ensure accurate record keeping.
Warehousing is expensive. cost of the land, building, machinery, labor and the items stored in the warehouse –consumes bulk of money
How do the companies reduce this cost
Maximize the operation by
Streamlining the placement and picking of goods
Reducing the time goods are stored in the warehouse
Automating as much as possible to minimize labor costs
The document provides information about warehousing and storage. It discusses:
1) The need for storage arises for both raw materials and finished products to create maximum time utility at minimum cost.
2) Storage involves proper management to preserve goods from production until use. Large scale storage in a specified manner is called warehousing.
3) Warehouses now serve as distribution centers rather than just storage, ensuring a continuous supply of goods to meet changing market conditions.
The document discusses warehousing and storage. It defines warehousing as storing goods on a large scale in a specified manner. Warehousing ensures a continuous supply of goods to the market by addressing delays in transportation, uncertainties in production, and mismatches between production and use times. The objectives of warehousing are to facilitate the movement of goods throughout the supply chain and provide timely customer service at minimum cost. The document outlines various warehousing operations including receipt, storage, and delivery of goods as well as services provided.
The document discusses various aspects of warehouse management including types of warehouses, warehouse activities, storage layout and stock location planning. It describes how warehouses can serve different missions like factory warehouses that hold inventory to balance production and demand. The key activities in warehouses are receiving goods, identifying items, dispatching to storage, order picking and shipping. Effective warehouse management requires selecting appropriate equipment and layout to optimize space utilization and efficient material handling.
Stores management is part of the overall function of materials management. In order, therefore, to understand the function of the former it is desirable to have a clear understanding of what materials management stands for.
According to Alford and Beatty “storekeeping is that aspect of material control concerned with the physical storage of goods.” In other words, storekeeping relates to art of preserving raw materials, work-in-progress and finished goods in the stores.
Successful inventory management involves creating a purchasing plan that will ensure that items are available when they are needed (but that neither too much nor too little is purchased) and keeping track of existing inventory and its use.
Warehouse logistics involves planning, organizing, and managing all operations within a warehouse. This includes inventory management, shipping and receiving, safety policies, and human resources. Effective warehouse logistics is key to running warehouse operations smoothly. Implementing a warehouse management system is important for improving warehouse logistics by providing real-time inventory visibility, optimizing processes, and increasing efficiency. However, warehouse logistics are influenced by human factors like employee training and changes within the physical warehouse, so ongoing adaptation is needed.
The document discusses store management and various aspects related to it. It defines store management and outlines key objectives like minimizing production costs and maintaining material value. It describes important store functions such as receipt, storage, retrieval, issue, records keeping, and control. It also discusses centralized and decentralized store models and factors affecting store layout. The overall purpose of store management is to receive, store and issue materials efficiently at lowest cost.
This document provides guidance on effective store and inventory management. It outlines key objectives and responsibilities of storekeepers including understanding inventory principles, record keeping, and maintaining stock levels. The document describes best practices for core warehouse activities such as stock receipt, storage, issuance and record keeping. It also discusses inventory control systems and how to assess stock status. The goal is to provide timely customer service while minimizing costs and protecting inventory through proper care, storage, and security of the warehouse and stock.
The document discusses the processes of food and beverage procurement, receiving, storage, and inventory management in the hospitality industry. It defines key terms, outlines the various steps in purchasing and receiving processes, and provides guidelines for proper food storage and inventory control methods. Maintaining accurate records at each stage of the supply chain is emphasized as important for cost control and ensuring food quality and safety.
This document discusses material management and inventory in manufacturing. It covers key aspects like the purpose of inventory, types of inventory, reasons for holding inventory, and functions of the stores department. The document compares high and low inventory levels and discusses approaches to stores location, recording material, issuing material, and centralized vs decentralized storing. The overall aim is to ensure smooth material flow and quality control to reduce costs and meet production needs.
This document discusses various aspects of managing medical stores and warehouses, including objectives, activities, design principles, systems, classification, storage, and handling of materials. The key points are:
1. The objectives of medical stores are to receive, store, and distribute materials to meet user demands while minimizing waste through proper inventory control and storage methods.
2. Effective materials management involves planning, purchasing, receiving, inventory control, standardization, and disposal. Computerized stock records and communications between facilities are important.
3. Proper warehouse design considers product movement, handling technology, storage plans, and future expansion. Classification systems and fixed, fluid, or semi-fluid location methods determine how items are organized within zones and
Store management involves receiving materials, protecting them from damage and unauthorized removal, issuing materials in the right quantities at the right time and place, and providing these services promptly and at lowest cost. The key functions of a store include receipt, storage, retrieval, issue, record keeping, housekeeping, control, surplus management, verification, and coordination with other departments. Stores can be organized as centralized or decentralized systems, with tradeoffs between control/efficiency and transportation/handling costs.
The document discusses stores management in hospitals. It covers key topics like the functions and importance of stores, factors to consider for location and layout of stores, storage methods, and codification of items. The main points are:
1. Stores play a vital role in hospital operations by providing supplies to user departments and ensuring uninterrupted services. Proper storage, inventory management, and issue of items are some core functions.
2. Important factors for stores location include proximity to user departments, volume and variety of goods, and accessibility. The layout should allow for easy movement of materials and optimal space utilization.
3. Codification involves representing each stored item with a unique code for identification. Various systems group items
Warehousing involves storing products between the point of origin and consumption. Warehouses play an important role in logistics by providing time and place utility for materials and products. The main functions of warehousing include transportation consolidation, product mixing, receiving and shipping goods. There are different types of warehouses like public, private and contract warehouses. Designing an efficient warehouse requires considering factors like layout, storage locations, order picking and security. Key activities in warehouse management include receiving and inspecting inventory, identifying products, storing goods, order picking, assembling shipments and dispatching orders.
This document provides an overview of warehousing. 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. They can store various materials like raw materials, work-in-progress, spare parts, and finished goods. Key warehouse operations include receiving, storage, order picking, and shipping. The document also discusses types of warehouses, factors for effective warehouse use, and modern warehouse trends like just-in-time and RFID technologies.
Effective store keeping and successful inventory control.2Tajudeen Wahabi
Store keeping involves accounting for stock including raw materials, work-in-progress, finished goods, and some fixed assets. Materials are received through various modes of transportation and verified before being accounted for in stores. Different machines like forklifts and overhead cranes are used to carry and store heavy materials. Once materials are received, a goods receipt note is prepared to record the receipt and enable supplier payment. Materials are stored properly according to type in various stores and sub-stores for security, easy retrieval and handling. Inventory management aims to maintain adequate supply to meet demand while minimizing total costs of holding, ordering and shortage. Key terms include maximum limit, minimum limit, reorder level, and safety stock.
Objectives:
Identify the various functions and responsibilities of the warehouse/stores function.
Identify the various costs associated with holding or not holding inventory.
Describe and contribute in the design of an effective warehouse
Explain how to measure the performance of a warehouse
Warehousing involves storing products between the point of origin and consumption. Warehouses play an important role in logistics systems by providing time and place utility. The main functions of warehouses include transportation consolidation, product mixing, docking, service, and protecting against contingencies. There are different types of warehouses like public, private, and contract warehouses. Designing an efficient warehouse requires considering space requirements, layout, and processes like receiving, storage, order picking, and shipping. Key factors that influence effective warehouse operations are cube utilization, stock location systems, order picking methods, and security controls.
This document discusses store management and inventory control. It defines a store as a building where goods are kept for receiving, storing, and issuing materials. The key functions of a store are to receive raw materials, provide proper storage and preservation, meet demand from production departments, and minimize obsolete inventory. There are two main types of stores: centralized stores, which store all items in one central location, and decentralized stores, which store materials closer to points of use. The objectives of inventory management are to ensure continuous supply of materials for production and sufficient finished goods for sales while minimizing costs and obsolete inventory.
A warehouse is used to store goods and materials. Warehouse storage systems include storage cabinets, pallet racks, mezzanine levels, and automated equipment. These systems provide benefits like organization, safety, space and time savings, and high storage density. Common storage methods involve cabinets, pallets on racks, and mezzanine levels to maximize vertical space. Automated systems can operate equipment automatically.
This document provides guidelines and recommendations for managing inventory and fixed assets to prevent corruption. It discusses dividing tangible assets into inventory and fixed assets. Inventory includes goods for sale or production, while fixed assets are for staff use like computers and vehicles. Past cases show stores management is vulnerable to corruption through theft or collusion. The guidelines aim to minimize these risks with a user-friendly process. It recommends separating duties for purchasing, inventory control, and record-keeping. Strict procedures are outlined for receiving, storing, issuing, and disposing of inventory and fixed assets. Regular inventory checks and inspections are also advised to ensure accurate record keeping.
Warehousing is expensive. cost of the land, building, machinery, labor and the items stored in the warehouse –consumes bulk of money
How do the companies reduce this cost
Maximize the operation by
Streamlining the placement and picking of goods
Reducing the time goods are stored in the warehouse
Automating as much as possible to minimize labor costs
The document provides information about warehousing and storage. It discusses:
1) The need for storage arises for both raw materials and finished products to create maximum time utility at minimum cost.
2) Storage involves proper management to preserve goods from production until use. Large scale storage in a specified manner is called warehousing.
3) Warehouses now serve as distribution centers rather than just storage, ensuring a continuous supply of goods to meet changing market conditions.
The document discusses warehousing and storage. It defines warehousing as storing goods on a large scale in a specified manner. Warehousing ensures a continuous supply of goods to the market by addressing delays in transportation, uncertainties in production, and mismatches between production and use times. The objectives of warehousing are to facilitate the movement of goods throughout the supply chain and provide timely customer service at minimum cost. The document outlines various warehousing operations including receipt, storage, and delivery of goods as well as services provided.
WAREHOUSING AND STORAGE IN SUPPLY CHAIN MANAGEMENTAjeesh Mk
This Presentation "Warehousing and storage in supply chain management" covers topics Warehouse and Storage, Warehouse Management, Functions, Economic and Service Benefit, Principles of Warehouse design, Kinds of Warehouse etc.
Warehousing.pptx in the quality assurancehlo951790
Warehousing involves the storage of raw materials and finished products in warehouses before distribution. Good warehousing practices (GWP) ensure products are stored properly to maintain quality and safety. Key aspects of GWP include proper storage conditions, documentation of procedures, and optimizing resources. GWP helps with inventory management, regulatory compliance, and efficient distribution. Material management deals with planning and controlling the flow of materials from purchase to production and distribution. It aims to satisfy demand cost-effectively while maintaining adequate inventory levels and consistent supply. Key functions include procurement, inventory control, production scheduling, and coordination between departments.
This document discusses warehousing and material management practices. It provides details on the importance of good warehousing practices for optimizing storage and preserving product quality and integrity. Key aspects of warehousing covered include receiving, identifying, storing, and distributing products according to written procedures. Material management aims to efficiently plan and control the flow of materials from purchase to production. Key functions involve materials planning, purchasing, inventory control, and coordination between departments. Stages of material management outlined are general controls, receipt and quarantine of incoming materials, sampling and testing, and proper storage and issue of materials.
Group 4 - Purchasing: Value Analysis, Storage Management Procedures and Manag...Freshy Serapio
Managing storage facilities involves establishing procedures to effectively store merchandise and minimize losses. This includes classifying inventory, tracking usage rates, handling emergency orders, managing surpluses and stock transfers, taking perpetual and physical inventories, and conducting product cost calculations. Proper storage management procedures are also important and involve maintaining adequate temperature and humidity, using proper equipment, locating storage near receiving and production areas, providing maintenance access, enforcing security, employing competent personnel, ensuring sufficient time for duties, and establishing clear regulations.
The document discusses warehousing. It defines a warehouse as a storage structure constructed for protecting stored goods' quality and quantity. Warehouses are used by manufacturers, importers, exporters and others to store goods. They create time utility by bridging the time between production and consumption. Warehouses are important as they provide economic benefits through consolidation, act as assembly points, facilitate reverse logistics, enable storage and add value through inventory management. Location, functions, types and layout of warehouses are also covered.
warehousing: Good warehousing practice, materials managementnishasharma420212
This document discusses good warehousing practices and materials management in the pharmaceutical industry. It defines a warehouse as a place where raw materials and finished products are stored before distribution. Good warehousing practices (GWP) involve storing supplies in a way that products are always available in good condition, preserving drug integrity. GWP provides benefits like optimized resource use, supply chain integration, easier product location and retrieval, stock control, and regulatory compliance. The document outlines key warehouse functions, elements of good practices like safety, premises maintenance, and documentation, staff roles, and storage of different product types.
inventory control seminar FOR MANAGEMENT STUDENT.pptxApurva Dwivedi
This document summarizes a seminar on inventory control presented by Apurva Dwivedi. It defines inventory and describes the different types including raw materials, work in progress, and finished goods. It then discusses official and unofficial inventory in hospitals. Key concepts of inventory control are explained like periodic review systems, two bin systems, lead time, minimum stock levels, maximum order levels, and reorder levels. Inventory costs including ordering, carrying, and shortage costs are also summarized. The document concludes with selective inventory control methods and condemnation and disposal of inventory.
The document discusses the objectives, functions, and types of organizational stores. It describes that stores play a vital role in company operations by properly storing and issuing materials. The key functions of stores include receipt, storage, retrieval, issue, record keeping, and interaction with other departments. Stores aim to minimize production costs and maintain materials. Centralized stores manage all inventory in a main location, while decentralized stores keep inventory near production areas.
This document discusses various aspects of warehouse decisions. It begins by defining warehousing and explaining the need for warehousing. It then discusses the functions of warehouses and different types of warehouses including private, public, government, bonded, and cooperative warehouses. The document also covers factors to consider for warehouse selection such as the nature of goods, handling equipment, storage duration, and activities performed. Additionally, it discusses centralized vs decentralized warehouse locations and factors that influence warehouse size and number.
SIM Unit 4
Store management :
Materials handling,
Flow of goods/FIFO,
Computerization of inventory transactions
Security of stores,
Stocking and technical impacts-
shelf life,
wastage,
pilferage
This document provides information about warehousing in the pharmaceutical industry. It defines warehousing and warehouses, and outlines the objectives, functions, purposes, types, and general guidelines of warehousing. It discusses finished product warehousing, warehouse layout, standard operating procedures, design and construction considerations, maintenance, sanitation, and good warehousing practices. The document emphasizes the importance of orderly storage, documentation, stock control, safety, and quality assurance in pharmaceutical warehousing.
The document discusses logistics and warehousing, defining a warehouse as a place to store inventory and describing its key functions like receiving, storage, order picking, and shipping. It outlines factors to consider for an efficient warehouse like maximizing storage space, productivity, and asset utilization while minimizing costs. The document also examines different types of warehouses, costs, decisions involved in warehouse planning and operations, and the role of warehouse management systems.
This document provides an overview of supply chain management concepts. It discusses inventory management, including types of inventory, functions of inventory, tracking inventory using SKU and UPC codes, inventory costs, and selective inventory controls like ABC analysis. It also covers lean manufacturing, planning methods like replenishment order point and economic order quantity, forecasting techniques, and procurement. The document is divided into 7 chapters that briefly explain these various supply chain management topics.
Warehouses play an important role in logistics by storing goods prior to distribution. The key functions of a warehouse include receiving, storage, order picking, packaging and shipping. Warehouses must address various operational challenges such as inventory inaccuracy, redundant processes, demand fluctuations, and high labor costs. A warehouse decision model can help identify strategic, tactical and operational needs based on objectives, resources and product characteristics. Emerging warehouse strategies like virtual warehousing use software to provide real-time inventory visibility across distributed storage locations.
Warehousing involves receiving, storing, and preparing goods for reshipment. The major warehousing operations are inbound activities like receiving and put-away, process activities like order picking, replenishment, and stock rotation, and outbound activities like packing and shipping. Receiving involves unloading shipments and checking for completeness and damage. Put-away involves scanning barcodes and storing goods in assigned locations. Order picking methods include zone, batch, and wave picking. Replenishment and stock rotation help maintain efficient inventory flow. Packing protects goods during transport while shipping involves confirmation, invoicing, sealing, staging and loading goods.
Similar to Warehusing operation in non governmental organization (20)
Evolution and Growth of Supply chain.pdfGuta Mengesha
Definition of Procurement
Procurement process
Different functional names of procurement
Total cost of ownership (TCO)
Impact of procurement on cost and revenue
Procurement as a profession
. Supplier relationship management
.Strategic sourcing
.Category Management
. Contract Management
. Negotiation
Key procurement trends
Custom Clearance and relevant documents
Spend Analyzes
Supply segmentation form buyer and seller prospect
KPIs in procurement
Monitoring and Evaluation for development and governmental organizations.pdfGuta Mengesha
This document provides an overview of monitoring and evaluation for development and governmental organizations. It defines key terms and concepts related to monitoring and evaluation. Monitoring is defined as the continuous and systematic collection of data on specified indicators to track progress and performance. Evaluation is defined as the periodic assessment of a project, program, or policy to determine relevance, effectiveness, impact, and sustainability. The main difference between monitoring and evaluation is that monitoring is continuous, focuses on implementation and outputs, and helps management make adjustments, while evaluation is periodic, focuses on outcomes and results, and assesses the overall value of the intervention. The document outlines the goals, tools, and principles of both monitoring and evaluation.
The document provides guidance on grant development and management processes for local NGOs in West Ethiopia. It discusses key topics such as conceptualizing grants, the grant lifecycle from the perspective of both grant makers and recipients, prerequisites for obtaining grants, types of grants, seeking grants proactively or reactively, and the grant proposal writing process. The three main stages of the grant management process for grant makers are presented as the pre-award, award, and post-award stages. For grant recipients, the key aspects include meeting grant requirements, reporting on progress and results, and closing out the grant. Detailed steps are provided for activities in each stage to help NGOs effectively develop, obtain, and manage grants.
GTG Ethiopia Certificates Of Completion 16.pdfGuta Mengesha
World Vision International sponsored a Gateway to Grants Workshop in Addis Ababa, Ethiopia from June 19-23, 2017. Guta Mengesha received a Certificate of Completion for attending the workshop and earned a total of 40 continuing professional education credits across various topics, including Accounting, Regulatory Ethics, Finance, and Specialized Knowledge and Applications. The certificate was signed by Kenneth E. Botka of World Vision International and workshop facilitators from WVUS Grant Solutions.
After completing the course, students will be able to:
1. Explain key accounting concepts such as financial and managerial accounting, the accounting cycle, and preparing financial reports.
2. Distinguish accounting systems such as cash, accrual, single and double entry.
3. Apply accounting principles to prepare financial statements and analyze results.
The document discusses procurement strategy and characterizes procurement items into four categories based on risk and expenditure: 1) Routine items with low risk and low spend, 2) Leverage items with low risk and high spend, 3) Bottleneck items with high risk and low spend, and 4) Strategic items with high risk and high spend. For each category, the document outlines the main characteristics and provides examples of potential operational strategies to manage procurement in that area. These include minimizing costs, establishing long-term agreements, developing alternative suppliers, and maintaining close communication with key suppliers.
This document provides a feasibility study for establishing a digital marketing business called Walmale Network Marketing PLC in Jimma, Ethiopia. The business will provide delivery of consumer goods, household supplies, agricultural products, and small construction/maintenance services. It aims to take advantage of the growing demand for online ordering and delivery of items. The study describes the business model, products/services, target market of small businesses and individuals in Jimma, competitors in the area, and competitive advantages of more customized and personalized services. It also provides financial projections indicating the investment required and potential returns.
Source of project risk and measurement technique ethiopiaGuta Mengesha
The document discusses sources of project risk and measurement techniques in Ethiopia. It defines project risk and risk management. It then outlines various sources of project risk for public enterprises, private companies, and non-governmental organizations in Ethiopia. The document also defines different techniques for measuring project risk, including the risk adjusted discount rate method, decision trees, basic probability theory, standard deviation, and others. It provides an example of how to calculate net present value using the risk adjusted discount rate method to evaluate a project.
Vehicle fleet management in humanitarian organizationGuta Mengesha
Vehicle fleet management is critical for humanitarian organizations. It involves activities like determining the type and number of vehicles needed, registration, insurance, maintenance, fuel usage, and driver supervision. It aims to ensure vehicles are safely and cost-effectively operated for legitimate purposes. Key aspects of fleet management include acquisition, use, and disposal of vehicles, as well as training drivers and implementing policies to prevent misuse. The overall goals are to have vehicles that are suitable, available, reliable, safe, economical and environmentally sound.
This document provides a list of 80 tools used for project/program management. It includes the project cycle phase the tool is used for, the management discipline it relates to, and a brief description of the purpose of each tool. Some of the key tools listed include the logical framework matrix for scope planning, risk registers for risk management, Gantt charts for time management, and monitoring and evaluation frameworks for measuring performance against objectives. The tools cover all phases of the project cycle from identification to evaluation and aim to support effective planning, implementation, and management of programs.
Training, development and compensation in mncGuta Mengesha
This document discusses training, development, and compensation in multinational corporations (MNCs). It covers various types of training techniques used by MNCs, including cross-cultural training programs. Development focuses on long-term growth for employees, while training aims to improve current job skills. Compensation in MNCs involves considering numerous complex factors like cost of living, taxes, and currency exchange rates between locations. The relationship between compensation and performance evaluation in MNCs aims to reward employees for both job completion and future goals.
Project procuremenet contract in ethiopiaGuta Mengesha
This document discusses project procurement and contract administration in the Ethiopian context. It defines procurement contract administration as the management of all actions after a contract is awarded. It discusses the meaning of contracts, elements of a valid contract, and different types of contracts including fixed price, cost reimbursement, and project procurement contracts. Challenges in procurement contract administration in Ethiopia are also mentioned. The document provides an overview of key concepts in project procurement and contract management.
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
The Impact of Generative AI and 4th Industrial RevolutionPaolo Maresca
This infographic explores the transformative power of Generative AI, a key driver of the 4th Industrial Revolution. Discover how Generative AI is revolutionizing industries, accelerating innovation, and shaping the future of work.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Warehusing operation in non governmental organization
1. WAREHOUSING OPERATION MANAGEMENT
By Guta Mengesha
MBA,MA in project management and Finance
Ethiopia
Email.gutamdg@yahoo.com or guta.mengesha@ju.edu.et
By Guta Mengesha 1/24/2021
2. WAREHOUSING OPERATION MANAGEMENT
What is warehousing?
Is set of activities that are involved in receiving, storing of items and preparing for re-
shipment.(Robert Hughes)
What is warehouse?
Is space, room, or building where material, semi-finished goods/items purchased and
manufactured are kept temporarily or for sufficient time utile removal to supply for users
(production, sale or for consumption).
Some times warehouse can be defined in terms of process or activities in warehouse. These
are receiving, Storing(Put-away),Issuing or dispatch).
What is warehousing operation?
Is satisfying customer needs and requirement while utilizing space, equipment and labor
efficiency.
By Guta Mengesha 1/24/2021
3. WAREHOUSING OPERATION MANAGEMENT
Three major activities in warehouse
1. Inbound activities: includes Receiving-(include offload and
checking) and put-away, storing
2. Process activities: include picking, Replenishment, stock
rotation
3. Outbound activities: includes shipping and packing
By Guta Mengesha 1/24/2021
4. WAREHOUSING OPERATION MANAGEMENT
1.Inbound activities
o Receiving: include unload and checking shipment. Unpack and inspect the material and
finally completion of a receiving report.
o Put-away: include activities like scanning barcode , moving given address and selection of
warehouse location like product code, product key, size, color. Wight, cost
2.Process Activities
o Order-picking: is process of pulling items from the inventory to fill customer order. There are
probability three methods. These are zone picking, Bach picking and wave picking.
o Replenishment: is movement of inventory from upstream to downstream. It prevent costly
inventory flowing through supply chain by maintaining efficient order. It also prevent costly
inventory overstocking.
o Stock rotation: It arrange the oldest unit in inventory so they are issued before new unit. Thus, it
reduces the loss from deterioration and obsolescence. There are three methods, First in, fist
out last in first out and bar code of data manufacture system.
3.Outbound activities
o Packing: is activity that minimize damage that can occur after an item has left the
production line
o Shipping: confirmation, invoicing, stealing, staging, and loading
By Guta Mengesha 1/24/2021
5. WAREHOUSING OPERATION MANAGEMENT
Warehouse process
Why warehouse process?
1.To define functions in warehouse that means tasks in warehouse
Staffing-supervisors, stock controllers, store keepers
Security-Guards, insurance, building, anti-rodents, signature
Receive, store issue-clock wise
Documentation-anti-clockwise
Inventory control-periodic or perpetual reports
Facilities-Location, type of storage, material handling equipment, number and size
of distribution depots and unit load and the like
2.For smooth flow of work in warehouse- reducing a lead time and operating cost
By Guta Mengesha 1/24/2021
6. WAREHOUSING OPERATION MANAGEMENT
Process in process- inbound activities
I. Receiving
II. Put-away
III. Dispatch
Tasks and process defined
1) Receiving-is accepting stocks in warehouse
2) Put-away- movement of goods from receiving dock to inventory storage area
3) Dispatch-is an outward process to send goods from our warehouse to customer next
destination.
Store management
Is the process of supplying and storing the various materials and parts. The purpose of
store management is to device the activities of storing in such a way that materials are
received on one end, kept inside storing room and issued to deliver to end users.
By Guta Mengesha 1/24/2021
7. WAREHOUSING OPERATION MANAGEMENT
Receiving process in detail
Step 1.Vehicle report at warehouse entry gate and make required entries in arrival
register(AR).Arrival register includes date, time of arrival, vehicle plate number,
supplier name, driver name and mobile number
Step 2.Parking of vehicle at unloading dock
Step 3.Driver report at document control room
Step 4.Documenet verification
Step 5.Unloading the goods
Step 6.Inspection-counting and validation pre document
Step 7.Supervisor mention the quantities received against document. Sign and share the
same to driver and make entries of stock
Step 8.Stock updating-if excess and damage of good or short item is found and a
discrepancy note will be shared with supplier or warehouse from where we have
received the goods.
Then the put away activity begins
By Guta Mengesha 1/24/2021
8. WAREHOUSING OPERATION MANAGEMENT
Objective of store keeping
To procure and maintain requirement
To provide maintenance of material
To store, discarded and obsolete goods
To receive and issue finished product
Functions of systematic store keeping
• Continuity in production(for manufacturing firm) /deliver service(NGO)
• Preservation
• Quality control
• Receipt and issue property
• Proper inventory control
• Reduced capital investment by under stocking
• Better record
• Buffer stock that avoid shortage and stoppage of production
By Guta Mengesha 1/24/2021
9. WAREHOUSING OPERATION MANAGEMENT
Key performance indicators (KPI) in warehouse management
A. Defect per order
B. Supplier return rate
C. Accuracy in billing per transaction
D. Accuracy in specification
E. Return rate
F. Delivery in full or quantity per order
G. Ordered per delivered specification
By Guta Mengesha 1/24/2021
10. WAREHOUSING OPERATION MANAGEMENT
Challenges in warehouse management
Obsolescence of goods
Dampness and corroded –like cement, iron product, stationary
Dust-for electric devices
Leakage-for gases like chlorine, sulpheric di0xide,hydrogen, petroleum
Deterioration/Expiry –for agricultural product
Moth, rate and insects-for food grains and cloth the like
Toxic or flammables-fumes, liquid like fertilizers
Ghuns-for bamboo, timber and wood
Air, heat, light –like drugs, rubber and chemicals
Theft
Fire breaks
Excess stock holding
By Guta Mengesha 1/24/2021
11. WAREHOUSING OPERATION MANAGEMENT
Preservation of materials in warehouse
Good housekeeping-cleaning , good ventilation, air conditioning
Protection against fire-by use of fire proof rooms, having fire fighting equipment-like fire extinguishers, water and
chemical sprinklers, fire alarms, inert gas
Dust protection-closed and dust free enclose
Proper environment-proper air conditioning to avoid dampness, dehumidifiers maintain dryness, protections against
light, heat and rains.
Protection against corrosion-by painting, coating, or greasing by anti- corrosive chemicals
Security/Guard-lock doors, lock/windows, unauthorized entry prevention, to keep against theft, pilferage and accident
Signature: issuance by authorized document
Auditing: as material management to keep proper record, all materials received in store and keep as inventory must be
audited from time to time.
Verification :can be done by two ways; Periodic counting one or twice a year by team assigned and continuous
counting which could avoid discrepancy and errors.
Material Accounting :Cost of material is determined by its price and storing cost. Price is obtained by purchase order
but storing cost is by proper accounting of various cost involved in processing, handling, maintaining and storing the
item.
By Guta Mengesha 1/24/2021
12. WAREHOUSING OPERATION MANAGEMENT
Functions of store
1) Identification of stock-classification and coding
2) Storing material above safety stock and up to maximum capacity
3) Control material required for production/or emergency purpose should not fall below
minimum level
4) Receive stocks or fixed asset from all sources
5) Inspect and check materials after receipt and before storing
6) Arrange and store materials systematically
7) Distribution of materials and maintain a flow
8) Maintain material efficiency, avoid wastage and theft
9) Keeping up-to-date records of all incoming and outgoing materials to much with
balance in stores
10) Stock taking and stock control-which involves periodic physical stock count to ensure
availability of materials when needed.
By Guta Mengesha 1/24/2021
13. WAREHOUSING OPERATION MANAGEMENT
Types of warehouse space
1. Commercial: rented building
2. Government or state: at ports or harbors is common in emergency situation
3. Transit: for temporary storage destined for different locations and need
storage for short period
4. Bonded store: kind of store where good for which customs duty and excise
taxes not been paid kept.
5. Quarantine store: is kind of store where materials kept for sometimes for
inspections.
6. Open store: alternative for emergency situation but not ideal for perishable
product.
7. Pre-fabricated warehouse: where there are no permanent structures
available. This is common in emergency situation
8. Space that is owned and managed by organization
By Guta Mengesha 1/24/2021
14. WAREHOUSING OPERATION MANAGEMENT
Methods of storing materials in warehouse
I. Bins-is a card attached to each bib, rack, shelf or containers. Is for small items which
are easily handled and is for general purpose items. Such items are fast moving. Is a
record of material entering and leaving and balances are verified. For ready reference
stock card is kept. Manual handling is possible.
II. Shelves/Racks: items which are large in size and heavy to store are kept. Movement is
done by mechanical devices.
III. Pallet: are designed platform for stacking load which can be moved by fork lift. Is
proper for regular shaped heavy items.
IV. Containers: particularly for liquid and gases.
V. Box and post pallet: for irregular shaped items
VI. Amirah and Cabinet: for expensive dust free environment. To store bag, box, regular
shaped items
VII. Stands: to store bars tube, sheet and plates of metal
By Guta Mengesha 1/24/2021
15. WAREHOUSING OPERATION MANAGEMENT
Inventory management in warehousing
What is inventory
Definitions
Is stock of goods or list of goods. A dictionary meaning
Is material resource that will be used in a project in course of time
In accounting –Inventory means stock of finished goods.
From manufacturing point of view –Inventory include raw materials, work in process, stores.
Inventory Management
Is what to purchase? How to purchase? How much to purchase? From where to purchase?
Where to store? When to use for production or distribution?
Objective of inventory management
To maintain optimum inventory to maximize profitability or satisfaction of beneficiary
To meet the seasonal demand of product
To ensure the level and site of inventory required
To avoid both over and under stock inventory
By Guta Mengesha 1/24/2021
16. WAREHOUSING OPERATION MANAGEMENT
Techniques of inventory management
Inventory management techniques are divided to three
1.Based on order quantity
I. Determination of stock level
II. Determination of safety stock
III. Economic order quantity
2. Bases on classification
I.ABC Analysis
II. VED analysis
III.HML analysis
IV. Aging Schedule
3.Based on Records
I. Inventory Report
II. Inventory Budget
By Guta Mengesha 1/24/2021
17. WAREHOUSING OPERATION MANAGEMENT
1.Technique based on the order quantity of inventories
I. Stock level: Business must maintain optimum level of stock for smooth running of business process.
A. Minimum level: if stocks are below this operation will stop.
Formula Minimum level= Reorder level-(Normal consumptions Normal delivery)
B. Reorder level: is fixed between minimum and maximum level and is further level at which fresh
orders are made.
Formula Reorder level=Maximum consumption X maximum re-order period
C. Maximum level: is quantities of inventories that must be maintained. If quantity exceed this it will be
overstocking.
Formula Maximum level=Reorder level + Re-order quantity-(Minimum consumption x Minimum
delivery period)
D. Danger level: is level below the minimum level. It leads to stoppage of the production process.
Formula=Average consumption x Maximum re-order period for emergency purchase
E. Average stock level: is calculated as Minimum stock level+1/2 of re-order quantity maximum level.
By Guta Mengesha 1/24/2021
19. WAREHOUSING OPERATION MANAGEMENT
1.Technique based on the order quantity of inventories…..
Examples
Based on the information given below:
Minimum level(4) average level
Normal usage:100 unit/week
Maximum usgage:150 unit/week
Minimum usage:50 unit /week
Reorder quantity(EOQ)=500 unit
Log in time 5 to 7 week
Required 1.Reorder level
2. Maximum level
3.Minimum level
4.Average level
By Guta Mengesha 1/24/2021
20. WAREHOUSING OPERATION MANAGEMENT
2.Technique based on the order quantity of inventories…..
II. Stock level
This implies extra inventories that can be drawn when actual lead time and/or usage rates are greater than expected. Safety
stock are determined by opportunity cost and carrying cost of inventories. If the business concerns maintain low level of
safety stock, it will lead to larger opportunity cost and the larger quantity of safety stock involves higher carrying cost.
III. Economic(Optimal) Order Quantity (EOQ)
Where annual demand is known and remain constant. Is an inventory level that maximize the total of carrying and ordering
cost. It found at balance between cost of placing an order and cost of holding it. It assumes that there will be no stock outs,
zero lead time and that we can safely order when at zero stocks. EOQ also mean a point at which ordering cost line equals
with carrying cost of an inventory.
Assumptions:
Is only for one product
Annual demand requirement is known
Demand is even throughout the year that is no seasonality
Each order is received in a single delivery
There is no quantity discount
By Guta Mengesha 1/24/2021
21. WAREHOUSING OPERATION MANAGEMENT
III. Economic(Optimal) Order Quantity (EOQ)……
Total cost=Annual carrying cost + Annual ordering cost
TC =Q H + D S Where H=Carrying cost S=Ordering cost Q=Order quantity D=Demand
2 Q
Using calculus, we take derivative of total cost function and set the derivative(slope) equal
to zero and solve for Q
EOQ=Q/2 H=D/Q S
Solving for Q
Q2=2DS
H
By Guta Mengesha 1/24/2021
22. WAREHOUSING OPERATION MANAGEMENT
III. Economic(Optimal) Order Quantity (EOQ)……
Example: Based on the following information
for EOQ
Annual consumption =24,000unit
Purchase price per unit=Birr 5
Ordering cost per order=Birr 19/order
Inventory carrying cost is 20% of average
inventory
EOQ= 302 unit
Ordering cost= 24000 X 19= Birr 1,510
302
Inventory carrying cost=302 X 5 X 0.2 = Birr 151
2
By Guta Mengesha 1/24/2021
23. WAREHOUSING OPERATION MANAGEMENT
2. Technique based on the classification of inventories
I.A-B-C Analysis
Is also one of inventory controlling technique
Is based on Pareto law that says ”In any large group there are significant few and
insignificant many”.
Materials are categorized in to three based on the value and volume of inventories. A,B and
C.
Volume and value A
Most important
B
Moderately important
C
Least important
% of number of inventories item 10 20 70
% value of the items 70 20 10
By Guta Mengesha 1/24/2021
24. WAREHOUSING OPERATION MANAGEMENT
I.A-B-C Analysis
The benefit of using ABC analysis
It ensure control of costly items where capital invested
It ensure a considerable reduction in storage expenses
For resource allocation as continues process with periodic tracking of items
Increase economy as equal time and labor is not required for all items
Silent features of these inventories
Description Category A Category B Category C
Forecast Accurate forecast of
quantity
Approximate forecast No forecast
Staff Senior level
involvement
Middle level
involvement
Junior level
involvement
Degree of control Strategic degree Moderate degree Relaxed control
By Guta Mengesha 1/24/2021
25. WAREHOUSING OPERATION MANAGEMENT
II. VED analysis
V=Vital items
E= Essential item
D= Desirable items
III. HML Analysis
Inventories are here classified in to three categories on the basis of the value of the inventories.
H=High value of inventories
M=Medium value of inventories
L=Low value of inventories
IV. Aging schedule of inventories or FNSD analysis
Inventories are classified based on the period of their holding. Where
F=Fast moving inventories
N=Normal moving inventories
S=Slow moving inventories
D=Dead moving inventories
By Guta Mengesha 1/24/2021
26. WAREHOUSING OPERATION MANAGEMENT
3.Inventory control technique based on records
I. Inventory Budge: Is the kind of functional budget which facilitates the estimated
inventory required for the business concern during a particular period. Budget
preparation is based on past experience.
II. Inventory Report: Preparation of periodic inventory reports provide information
regarding the order level, quantity to be procured, and all other information related to
inventories. On the basis of this report, management takes the necessary decision
regarding inventory control and management in the business concern
By Guta Mengesha 1/24/2021
27. WAREHOUSING OPERATION MANAGEMENT
What are inventory related costs?
1. Procurement: this is price of good and ordering cost. These includes cost of store keeping to replenish
every time, cost per order that has an administrative component, making an inquiry, tendering , common
paper works, preparing mathematical and technical analysis, ,handling packers at to your primes,
transportation, inspections upon arrivals of good.
2. Holding or Carrying cost: cost to carry an item in inventory for a prolonged period of time. It occur when
supply exceed demand. These costs include storage expense, people , equipment, interest on tied up
capital, property tax(if any), insurance, spoilage, obsolescence, pilferage, rent
3. Ordering cost: Cost of ordering and receiving an inventories
4. Shortage cost: cost when demand exceeds supply. Is cost associated with stock out. These may include lost
sale, back orders, additional cost of special order, loss of customer good will,
By Guta Mengesha 1/24/2021
28. WAREHOUSING OPERATION MANAGEMENT
Reference
Warehouse operation system by Robert Hughes) 2020
Supply chain and logistic by Arivand Kumar 2021
Warehousing on imported good by Prof. Rajash J Taylor 2021
Financial management by C. Paramasivan and T.Subramanian
By Guta Mengesha 1/24/2021