WAREHOUSING

MANAGEMENT

D. N. CHAKROBORTY
 WAREHOUSE
• WAREHOUSE IS THE REAL/VIRTUAL STORING
PLACE FOR THE PROCESSED/ FINISHED GOODS IN
THE DIFFERENT FORMS LIKE PRIVATE/PUBLIC
BONDED WAREHOUSE TO CATER THE NEED IN
THE TOTAL SUPPLY CHAIN MANAGEMENT
SOLUTION.EFFICIENCY OF THE WAREHOUSE
DEPENDS ON THE SPEEDY SHARING OF
INFORMATION USING THE IT TOOLS ON A COMMON
PROTOCOL WITH ALL THE KEY PLAYERS. SO, IT IS
THE INTEGRAL PART OF THE LOGISTICAL SYSTEM
AND EFFECTIVENESS OF CUSTOMER SERVICE.
 SPECIAL ATTENTION FOR
WAREHOUSE

• HIGHER PRODUCTIVITY OF ALL THE

RESOURCES
• REDUCTION IN MATERIAL HANDLING
• REDUCTION IN OPERATING COST
• INCREASE INVENTORY TURNOVER
• REDUCTION IN LEAD TIME
 CHOICE OF WAREHOUSE
DEPENDS ON:-

• DEMAND/FREQUENCY
• NUMBER OF ITEMS TO BE HANDLED
• MODE OF TRANSPORTATION
• GEOGRAPHIC LOCATION
• SEASONALITY OF THE PRODUCT
• STANDARDISATION IN PACKAGING
• STANDARDISATION IN MATERIAL
HANDLING
 LOCATION OF WAREHOUSE

• PROXIMITY TO MARKET
• AVAILABILITY OF RESOURCES
• SUITABILITY
• CLIMATIC CONDITION
• INFRASTRUCTURAL FACILITIES
• PROXIMITY TO ROAD/RAIL/PORT HEAD
• CENTRE OF LOAD
• CENTRE OF GRAVITY
 DESIGN

• LAYOUT
• STORAGE SPACE
• STOCK LOCATION
• ORDER PICKING
FUNCTIONS
 HOLD FUNCTION
PLANT WAREHOUSE CUSTOMER

 CONSOLIDATION FUNCTION
S1 BUYER

S2 WAREHOUSE
BUYER

S3 BUYER
 BREAK BULK C1

MFG WAREHOUSE C2

C3

 MIXING FUNCTION
PLANT1
ITEM1 C1

MIXING
PLANT2 C2
ITEM2 WAREHOUSE

C3
PLANT3
ITEM3
 WAREHOUSE FUNCTIONING
DEPENDS ON:-

• STOCK TURNOVER
• SPACE UTILISATION
• PRODUCT CONFIGURATION
• PRODUCT CHARACTERS
• SAFETY /SECURITY
• HOUSE KEEPING
• MATERIAL HANDLING EQUIPMENT
UTILISATION
 WAREHOUSE PERFORMANCE
PARAMETERS

• STOCK TURNOVER
• WAREHOUSE COST TO SALES
VOLUME
• WAREHOUSE COST/UNIT HANDLED
• OCCUPANCY RATE
• MATERIAL HANDLING CAPACITY
UTILISATION
 WAREHOUSE FACILITY
PLANNING DECISION
• STRATEGIC------ LAYOUT
MATERIAL HANDLING EQUIPMENT
STORAGE SCHEME
• TACTICAL-------- STORAGE ALLOCATION
PICKING
PACKING
• OPERATIONAL- WORK ALLOCATION
JOB SCHEDULING
PERFORMANCE MONITORING
 CASE 1
• Transaction in one warehouse is placed below for a
particular commodity

 01.03.08: Received 1000kgs @ Rs 100/- per kg

 07.03.08: Received 300kgs @ Rs 110/- per kg
 10.03.08: Issued 900kgs to customer C1
 16.03.08: Received 700kgs @ Rs 120/- per kg
 23.03.08: Issued 600kgs to customer C2
 31.03.08: Received 100kgs @ Rs 100/- per kg

• To determine the value of stock by using different

methods.(FIFO/LIFO/WEIGHTED AVERAGE)
 CASE ON VENDOR RATING
• Performance of 3 vendors for 2007-08 is as per
following

Serial No. Vendor Lots Lots Lots Unit Price

Code received accepted( within
(Nos) Nos) D.S.

1. V-007 80 70 60 11

2. V-786 100 90 85 10

3. V-123 60 50 55 12

• From the above the study has to be made to find the

best performer.