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Maximum utilization of storage space. Higher labour productivity Maximum asset utilization Reduction in material handling Reduction in operating cost. Increased inventory turnover Reduced order filling time

Private Warehouse: - A firm producing or owning the goods owns private warehouses, Located near big markets for convenience of distribution. Advantages: •Better control over the movement and storage of products. •Less occurrence of error. Disadvantages: •Higher operation cost than public warehouse.


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

.Types of warehouse storagesystems 1. Pallet rack Material handling storage aid system designed to store materials on pallets or “skids”.

Office area in warehouse. Size of the product. Number of product marketed. Size of market. Types of rakes and shelves used . Production lead time. Material handling system used.ADVANTAGE 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 Important factors         Customer service level.

Inventory Handling Types of warehousing procedures Receipt Procedure Inspection Procedure Outbound Procedure Shipment Procedure Definition of activities by procedure Activities for Receipt procedure (Example) whinh3412m000 Print Goods Receive Note (o) whinh3520m000 Receipts (m) whinh3201m000 Generate Inbound Advice (m) whinh3415m000 Print Storage List (o) whinh2515m100 Confirm Storage List (o) whinh3203m000 Put Away Inbound Activities for Outbound procedure (Example) whinh4201m000 Generate Outbound Advise(m) whinh4202m000 Release Outbound Advice (m) whinh4415m000 Print Picking List (o) whinh2525m100 Confirm Picking List (o) whinh3522m000 Approvals (o) Definition of warehouse order types .

Packaging         Interest in packaging is widespread Logistics Warehousing Transportation Size Marketing Production Legal The Role of Packaging     Identify product and provide information Improve efficiency in handling and distribution Customer interface Protect product Bar Coding  Standard markings that can be read by automatic or handheld scanners that allow for labour saving logistical activities for all supply chain members. Bar Codes contain information regarding:     Vendor Product type Place of manufacture Product price  .

Designing a Warehousing System Products flow from factories to customers through a long wide chain of multiple tires of warehouses and multiple tires of marketing intermediaries. conveyers etc. horizontal and vertical operating machines. dimensions. Example: Fork lift trucks. ‡ Equipment’s: Design should keep in mind the heavy / light equipment to be carried in the warehouse. . nature of labour used (manual /automated) etc. The architecture design should take into consideration the type of product. In designing a warehousing system. small vans. following questions poise due consideration: ‡ How many warehouses should a company have? Where should these warehouses be located? ‡ What should the size / capacity of these warehouses be? Various elements in the warehouse designing system Land and Building: Design should be in line with the overall distribution policies of the company. volume.

Following points need to be considered:   ‡ The geographic location of the warehouses should be close to the major market / dealer / distributor. height etc. Product characteristics like fragile / perishable. other factors such as the environment near the location in terms of infrastructure.   Factors affecting the location decisions Service level: Lead time. Product mix to be maintained. Cost of transportation. ‡ Other physical aspects: Town planning restriction. road connections. rules of local authorities etc.Where to locate warehouses The overall success or failure of a warehouse will depend upon the location selected. quality of soil. tax rebates. drain age water levels. to reach distributors. zones etc. Competitors approach . rail. have to be considered. ‡ After the rough geographic location is fixed. are the next to be dealt with. Coverage of the market. ‡ Fiscal and tax related aspects: In or outside the octroi limits.

‡ Operating methods and procedures: The size. area etc. will depend on the quantum of inventory to be carried in the warehouse. skilled / unskilled personnel etc. This needs computers and software's etc. ‡ Management and staff: Overall efficiency will depend upon the type of staff performing various functions. orders per hour.Various elements in the warehouse designing system Computers and software: Some warehouses carry hundreds of items with a variety of different features. The minimum order level. need due consideration. .