Warehousing

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 PRESENTED BY :-
NAME ROLL NO.
 SANDHYA MAHADIK 9
 BIJITTA GLORIET D.K  39
 RANJIT CHAUHAN  19
 KHALID  59
 RAJESH NAIR  29
 APSARA BHASKAR  49

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Introduction

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 DEFINITION
 Warehouse is performance of administrative and
physical functions associated with storage of goods
and materials.
 It is also a commercial building for storage of goods.
 It is used for:
 Switching facility
 Long term storage house
 Important steps in logistic network selection is
decided on centralized or decentralized.

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 OBJECTIVE
 Maximum utilization of storage space.
 Higher labor productivity
 Maximum asset utilization
 Reduction in material handling
 Reduction in operating cost.
 Increased inventory turnover
 Reduced order filling time
.
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 TYPES OF WAREHOUSES

3 major types

Private warehouse Public warehouse Contract warehouse

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1.Private Warehousing
• A firm producing
or owning the
goods owns
private
warehouses

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 Advantages & Disadvantages of
Private Warehousing
Advantages :
• Better control over the movement and
storage of products.
• Less occurrence of error.

Disadvantages:
• Higher operation cost than public
warehouse.
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 2.Public Warehousing
• A public
warehouse which
is owned by
government,
rents space to
individuals or
firm for storage
of goods.

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 Advantages

• Less expensive and more efficient.

• Easily available & strategically located.
• Flexibility.
• The overall cost of warehousing per
unit works out to a lower figure.
• Quick facilities.
• User pays only for the space and
services he use.

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3.Contract Warehouse
• Contract
warehousing is a
specialized form
of public
warehousing

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 Distinguish between
Private Public Contract

Investment High No Very little

Flexibility Material handling, Location Location

storage & thought
planning.
Cost per unit Inversely related to Low Inversely related to
stored volume volume.
Level of control High Low High

Adequacy of High Low High

goods stored
Risk Due to change in Minimal Minimal
market demand or
consumption center.
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WAREHOUSE LOCATION

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 Classification
• Market-positioned warehouses

• Manufacturing-positioned Warehouses

• Intermediately-positioned Warehouses

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Factors governing the warehouse
locations

• Availability of services
• Land cost
• Availability of transport linkages for example, to a rail siding
• Availability of utilities of water and power
• Taxes and insurance cost
• Expansion space availability
• And soil strength and lay off land for drainage.

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 FUNCTIONS OF
WAREHOUSING
• CONSOLIDATION
• BREAK BULK
• CROSS DOCKING
• PRODUCT MIXING
• STOCK PILING
• POSTPONEMENT
• POSITIONING
• ASSORTMENT
• DECOUPLING
• SAFETY STOCKING 16
Types of warehouse storage
systems

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 1. Pallet rack

• Material handling
storage aid system
designed to store
materials on pallets
or “skids”.

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 2. Mezzanine (architecture)
• In architecture, a mezzanine or
entresol is an intermediate
floor between main floors of a
building, and therefore
typically not counted among
the overall floors of a building.
Often, a mezzanine is low-
ceilinged and projects in the
form of a balcony. The term is
also used for the lowest
balcony in a theatre, or for the
first few rows of seats in that
balcony.

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 Advantages of warehouse
• Protection and Preservation of goods
• Regular flow of goods
• Continuity in production
• Convenient location
• Easy handling
• Useful for small businessmen
• Creation of employment
• Facilitates sale of goods
• Availability of finance
• Reduces risk of loss

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 THE NUMBER OF
WAREHOUSES
• The number of warehouses is another decision parameter impacting a
number of cost variables and customer service

• If customer service is taken in cost terms as cost of customer

dissatisfaction, the number of warehouses will affect transportation,
inventory, warehousing and customer dissatisfaction costs.

• The increasing number of warehousing leads to increasing customer

service levels, thus, decreasing customer dissatisfaction cost.

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 Automation and optimization
 Some warehouses are completely
automated, and require no
workers inside
 automated conveyors and
automated storage and retrieval machines
coordinated by
programmable logic controllers and
computers running
logistics automation software
 For a warehouse to function
efficiently, the facility must be
properly slotted.

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 Size of warehouse
• Many factors influence how large the
warehouse should be.
• 1st it is necessary to define how size is
measured.
• In general size can be defined in terms of
square footage or cubic space.

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 Important factors
• Customer service level.
• Size of market.
• Number of product marketed.
• Size of the product.
• Material handling system used.
• Production lead time.
• Office area in warehouse.
• Types of rakes and shelves used.
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 Warehouse layout & design.
• A good warehouse layout increase output,
improve product flow, reduced cost,
improve service to customer, and provide
better employee working condition.
• Good warehouse layout design involve the
use of automated equipment such as
conveyor system to handle large product
packed in a carton.
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Product flow
• Handling technology

• Storage plan

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 Warehouse layout product
• In warehouse layout product are grouped
according to :-

1. Compatibility
2. Complimentary
3. Popularity.

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Warehousing in india

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 SQUARE ROOT LAW
The Square Root Law states that:

“The total safety stock inventories in the future number of

facilities can be approximated by multiplying the total
amount of inventory at existing facilities by the square
root of the number of future facilities divided by number
of existing facilities”.

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 Example
N1 = Number of existing facilities
N2 = Number of future facilities
X1 = Total inventory in existing facility
X2 = Total inventory in future facility

A company presently distributing 40,000 units of product to its customer

from eight facility location throughout India is located at A, B, C, D, E, F,
G and H. The company is evaluating an opportunity to consolidate its
operation into two facilities. Square Root Law we will find the total amount
of inventory in the two future facility.
Where
Here,
X1 = 40,000
N1 = 8
N2 = 2

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 3 main agencies in India.
• There are three agencies in the public sector which are engaged in building
large scale storage/warehousing capacity namely, Food Corporation of
India(FCI) Central warehousing Corporation (CWC) and 17 State
Warehousing Corporation (SWCs). Over a period of time, sizeable scientific
storage/warehousing capacity has been developed by these public sector
agencies and they are implementing plans to increase it further. While the
capacity available with FCI is used mainly for storage of food grains as also
certain other notified items.

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LICENSING OF WAREHOUSE IN
INDIA
• suitable for proper storage of the class of goods intended to be stored.
• The applicant must be competent to conduct such a warehouse.
• fulfill any other conditions that the state government may notify from time to
time.
• pay the fees prescribed for the issue of a license and also furnish security.
• Under the state warehouses acts, a warehouseman takes such care of the
goods stored with him as a man of normal prudence would take of his own
goods.
• warehouseman must keep his warehouse clean and in a hygienic condition,
and take all the necessary precautions against rats, pests, etc.
• compulsorily insured against damage by fire, floods, theft or any other
accident.

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 CONCLUSION
• The entire area of facilities development
that is size and number of warehouses,
location analysis, warehouse layout and
design is an important factor yet complex,
part of warehouse management. In recent
years, computers have played a more
significant role as logistics executives
attempt to optimize warehouse operations
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 THANKS
FOR
LISTENING….

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