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Warehousing Decisions
Chapter 8
The warehouse is
where the supply
chain holds or
stores goods.
Chapter 8
Functions of
warehousing include:
Transportation
consolidation
Product mixing
Cross-docking
Service
Protection against
contingencies
Smoothing
Table 8-1
Warehouse Value-Adding
Roles
Chapter 8
Figure 8-1
Transportation Consolidation
Chapter 8
Figure 8-2
Supply and Product Mixing
Chapter 8
Ownership
Public versus contract versus private
Centralized or Decentralized Warehousing
How many
Location
Size
Layout
What products where
Chapter 8
Figure 8-3
Basic Warehousing Decisions
Chapter 8
Chapter 8
Public warehousing
costs mostly all
variable.
Private warehousing
costs have a higher
fixed cost component.
Thus private
warehousing virtually
requires a high and
constant volume.
Factors to consider
Throughput volume
Stability of demand
Density of market area to be served
Security and control needs
Customer service needs
Multiple use needs of the firm
Chapter 8
10
Table 8-2
Firm
Characteristics Affecting the
Ownership Decision
Chapter 8
11
Public Warehousing
Chapter 8
12
Public Warehousing
Public warehousing
regulation:
Liability
Receipts
Chapter 8
Public warehousing
rates based upon:
Value
Fragility
Potential damage
to other goods
Volume and
regularity
Weight density
Services required
13
Contract Warehousing
14
Chapter 8
15
Centralized
Decentralized
Substitutability
Low
High
Product Value
High
Low
Purchase Size
Large
Small
Special
Warehousing
Yes
No
Product Line
Diverse
Limited
Customer Service
Low
High
Chapter 8
16
Movement
Receiving
Put-away
Order picking
Shipping
Storage
Stock location
Warehouse Management System
(WMS)
Chapter 8
17
Figure 8-6
Basic Warehouse Operations
Chapter 8
18
Chapter 8
Develop a demand
forecast.
Determine each items
order quantity.
Convert units into cubic
footage requirements.
Allow for growth.
Allow for adequate aisle
space for materials
handling equipment.
19
20
Figure 8-8
Warehouse Space
Requirements
Chapter 8
21
Figure 8-9
Principles of
Warehouse Layout Design
Chapter 8
22
Chapter 8
Basic needs:
Receiving
Basic storage
area
Order selection
and preparation
Shipping
23
24
Cubic capacity
utilization
Protection
Efficiency
Mechanization
Productivity
Chapter 8
25
Chapter 8
26
Materials Handling
27
Objectives of Materials
Handling
Chapter 8
28
Figure 8-12
Utilization of a
Warehouses Cubic Capacity:
Principles of Warehouse Layout
Design
Chapter 8
29
Packaging
Warehousing
Transportation
Size
Marketing
Production
Legal
Chapter 8
30
Chapter 8
31
What Is Packaging?
Consumer packaging
Marketing managers primarily
concerned with how the package fits
into the marketing mix.
Industrial packaging
Logistics managers primarily concerned
with efficient shipping characteristics
including protection, ability to withstand
stacking when on a pallet, cube, weight,
shape and other relevant factors.
Chapter 8
32
Packaging Materials
Chapter 8
33
Bar Coding
Chapter 8
34
End of Chapter 8
Warehousing Decisions