Lecture Assignment 3

IET 342

Paula Mora

Q1: Pick three factors and discuss how that factor can impact the decision about three warehouse
ownership models.

 Public
 Private
 Third Party Logistics

Stability of demand

At a public company, the stability can be seen as more stable than a private company because is
more predictable. For example, public companies such as government paperwork would always have
customers with needs. However, a private company such as a phone company will not be able to
forecast the demands easily. A third party is the most expensive option, and the demand could be more
stable because it does not depend on independent customers but on other companies that will have a
specific demand of picking, packing, etc. A monthly contract will be more helpful to make changes on
any company`s demand.

Security and Control

Private companies will have a better control over security because they can focus on their
security of their own product. On the other hand, a public company will need other permits and
authorizations to make changes or improvements and they have many products to focus on. A private
company and a third-party company will have more expensive costs for changes because they rely on
their sales. However, a public company can rely on the party who owns it and can make changes more
frequently. Finally, a third-party company must have the proper security and control to store all the
incoming products from and for different companies.

Multiple use needs of the firm

A third-party company will have better decisions because of the different processes they offer to
other companies. Storing raw, unfinished, and finished products could be easier for this type of
company. A public company will follow the needs or orders of the party who owns it. On the other hand,
it can be more challenging for a private company to make new precise decisions that depend on their
needs because of their flexibility.
.Q2: Pick three activities and list one challenge associated with that warehouse operations activity.

1. Receive goods: it can be challenging to set up times and locations to receive goods from
different companies and suppliers. The warehouse will need to set up rules for the suppliers to
have proper identifications and to come on time.
2. Maintain inventory records: a challenge can be to have many people counting the inventory at
the same time and updating it in the same database. The changes must be immediate, accurate
and trustworthy so that the other parts of the company can access to this information.
3. Control inventory: a challenge may be to take care of fragile products. Also, having access and
space to different types of rooms such as appropriate ones for goods that need certain
temperatures or security.