Abas, Sulaiman T.

BSBAOM 202A

ACTIVITY 09 UNDER WAREHOUSE MANAGEMENT BEST PRACTICES

(H&M COMPANY)

Answer the following items: (3 items x 10 points)

1.Analyse and describe the economic requirements that could have influenced the major
problem in the given case study?
 The economic requirements that could have influenced the mayor problem of H&M is that they
should apply this strategy which is Continuous production because this is a nonstop production
of goods in factories requires an adequate supply of raw materials, so keep sufficient quantities
of raw material in the warehouse to ensure continuous production. For instance, a garment firm
keeps multiple rolls of threads in their warehouse for clothing production.

2. Recommend the appropriate type/s of warehouse/s that will help H&H better manage
their excess inventories?
 The type of warehouse that will help H&M to better manage their excess inventories is that they
should use the Support warehouse because this type of facility is a relatively small warehouse or
stock room that provides raw materials and/or work in process to business operations. There
are many small orders driven by production schedules and, in some cases, there is only
statistical information available about order composition.

3. Identify and describe the economic benefits of warehousing which may leverage H&M
sales?
 The economic benefits of warehousing which may leverage H&M sales is that Postponement
because this Warehouses can be used to delay production by performing processing, simple
manufacturing, and labeling activities. A warehouse with packaging or labeling capability allows
postponement of final production until actual demand is known. For example, if a company
suddenly decided to change labels for its products already stored in a warehouse, they may
simply do so through the help of a warehouse personnel who performs labeling duties. This
integrates efficiency in the supply chain since companies no longer need to pull out products
from the warehouse for some simple modifications.