Professional Documents
Culture Documents
Objectives
General management
Traffic management
Discuss the importance and functions of Warehousing
Function
Global logistics
Identify the major forms of warehousing. Order processing
Product planning
0 5 10 15 20 25
% of time and e ffort
Chapter 8&14
Warehousing-definition
Warehousing-definition
1
Terminology: W and DC Terminology: W and DC (contd)
Warehousing of products
Warehousing of products (contd)
The reasons are similar to the objectives of
holding inventory: Achieve transportation economics (e.g., Truckload (TL)
instead of Less than Truckload (LTL) of supply
Maintain a source of supply
Supplier
Supplier A
A TL or CL TL or CL TL, LTL or CL
Plant
Plant A
A
A Customer
B C1
A B C
Supplier
Supplier B
B A B C
Warehouse Plant Plant
Plant B
B Mixing
Mixing
Warehouse Plant
Warehouse
Warehouse
Supplier
Supplier C
C Plant
Plant C
C A Customer
B C2
A B C
A B C
Supplier
Supplier D
D
A Customer
B C3
A B C
A C
2
Consolidation
Breakbulk
Plant
Plant A
A TL or CL A ACustomer
B B C C1
TL or CL A A B B C C LTL
Customer 1
TL or CL
Plant Consolidation Break-bulk
Break-bulk
Plant B
B Consolidation Plant
Plant A
A
Warehouse Warehouse
Warehouse A Customer
B C 2
Warehouse Customer 2
Plant
Plant C
C
A Customer
B C 3
Customer 3
Warehousing Decisions
Warehousing decisions Ownership
Ownership
Strategic Operational
Private
Private Public
Public
decisions deal with the decisions related to
allocation of logistics managing logistics
resources performance
How
How many
many
Strategic decisions
long term decisions e.g., Centralised
Centralised Decentralised
Decentralised
should warehousing be
short term decisions and
owned, leased, rented or some generally are routine in
combination of these? nature e.g., What
What size
size
If owned, where should these how to better utilise
facilities be located, how equipment and Where
Where
many, what size? workforce?
Should the warehousing designing better layout Interior
Interior layout
layout
services be outsourced?
for product movement. Operational decisions
What
What products,
products,
where
where
Ownership Decision
Types of warehousing-ownership
Public warehousing
special commodity
warehouses Throughput volume
bulk storage warehouses
3
Firms Characteristics affecting the Benefits of Public warehouse
ownership decision
Flexibility to deal with changing demand
Firm characteristics Private Public Ability to supply skills and experience that the
organisation doesnt have internally
Throughput volume High Low
Access to latest equipment and practices
Demand variability Low Fluctuating Avoiding large capital investment (concentrate on
Market density High Low core business)
Quick access to a new and wider areas
Physical control Yes No
Allowing short-term tests of business in new areas
Service required High Low
Disadvantage: mainly loss of control
Security requirements High Low
Multiple use needed Yes No The trend in recent years has been to use public warehouses
Total
cost
Total cost
Number of warehouses
INPUT
Schedule carrier
Schedule carrier
Square Root Law Unload vehicle
Unload vehicle
Inspect for damage
Inspect for damage
Compare to P/O
Compare to P/O
Shipping
Shipping
Schedule carrier
Schedule carrier
Load vehicle
OUTPUT Load vehicle
Bill of lading
Bill of lading
Record update
Record update
4
Materials Handling equipment
Principles of materials handling
case picking
picking
Broken
Case
Shipping
ay
to re putaway
aw Warehouse
ut y
t p ar
serve
c m
Accumulation, sortation,
ire ri packing
t
D op
D irec
5
Warehouse productivity Packaging-definition