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store inventory.
However, in many logistical system designs,
A Sample Warehouse
Video
Benefits of Warehousing
Consolidation
Shipment consolidation is an economic benefit of
warehousing.
With this arrangement, the consolidating warehouse
receives and consolidated materials from a number
of manufacturing plants destined to a specific
customer on a single transportation shipment.
The benefits are the realization of the lowest possible
transportation rate and reduced congestion at a
customer's receiving dock.
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Consolidation Warehouses
Consolidation Warehouses
The primary benefit of consolidation is that it
Processing/Postponement
Warehouses can also be used to postpone, or delay,
Processing/Postponement
The use of brights for a private label product
Processing/Postponement
Processing and postponement provide two economic
benefits:
First, risk is minimized because final packaging is not
Stockpiling
The economic benefit of stockpiling comes from the
Video
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Service Benefits
Five basic service benefits are achieved
through warehousing:
spot stock,
assortment,
mixing,
production support, and
market presence.
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Spot Stock
Under spot stocking, a selected amount of a firm's
Assortment
An assortment warehouse stocks product
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Mixing
In a typical mixing situation, truckloads of products
Production Support
Production support warehousing provides a steady
Market Presence
While a market presence benefit may not be so
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Design Criteria
Warehouse design criteria address physical
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Height utilization
Regardless of facility size, the design should
Product flow
Warehouse design should also allow for straight
confusion.
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Handling technology
The second principle focuses on the
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Movement continuity
Movement continuity means that it is better for a
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Storage Plan
According to the third principle, a warehouse design
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Storage Plan
Similarly, the plan should include a specific strategy
Private Warehouses
A private warehouse is operated by the firm owning
the product.
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Public Warehouses
On the basis of the range of specialized operations
Public Warehouses
General merchandise warehouses are designed to
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Public Warehouses
Bonded warehouses are licensed by the
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Public Warehouses
Finally, a household goods or furniture
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Contract Warehouses
Contract warehousing combines the best
planning.
A master plan of the layout, space requirements, and
Site Selection
Location analysis techniques are available to assist in
Site Selection
A warehouse need not be located in a major
industrial area.
In many cities, one observes warehouses among
Site Selection
Beyond procurement cost, setup and operating
Site Selection
During most of the day, adequate water supplies
Site Selection
Several other requirements must be satisfied
Warehouse Layout
Layout of a warehouse depends on the proposed
Warehouse Layout
The most common sizes are 40 by 48 inches and 32
by 40 inches.
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Warehouse Layout
The second step in planning a layout involves the
pallet positioning.
ease.
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Pilferage Protection
Protection against theft of merchandise has become
Pilferage Protection
Without exception, no private automobile-regardless
Pilferage Protection
One night after work, one of these employees
a delivery truck.
The matter was promptly reported to security, which
informed the employee not to alter any packages taped
to the car and to continue parking inside the yard.
Over the next several days, the situation was fully
uncovered, with the ultimate arrest and conviction of
several warehouse employees who confessed to
stealing over $100,000 of company merchandise.
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Pilferage Protection
The firm would have been better off purchasing a
warehouse operations.
Many are honest mistakes in order selection and
shipment, but the purpose of security is to restrict
theft from all angles.
The majority of thefts occur during normal working
hours.
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Pilferage Protection
Computerized inventory control and order processing
Pilferage Protection
Not all pilferage occurs on an individual basis.
Numerous instances have been discovered where
Product Deterioration
Within the warehouse, a number of factors can
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Product Deterioration
The primary concern is deterioration that results from
employees.
Product Deterioration
In one situation, a stack of four pallets was dropped
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