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Welcome to

Department
of Logistic,
Purchasing
and
Warehouse
Objective
Give the best service by
professional guide and provide
ease to all department in buying
items and services provided,
store center management and
manage transportation for the
company with efficiency and at
the lowest possible cost.
Mission and vision
1. Ensuring all the requirements of the customers are met
on time in an efficient and safe manner.
2. To coordinate with third party logistics (3PLs).
3. To ensure that there is a safe and timely dispatch of
goods.
4. To draft plans, policies and procedures for successful
implementation of logistics system.
5. To ensure that the business goals of the organization
are in synchronization with logistics system.
6. To create and maintain customer support.
7. To maintain coordination with vendors, service
providers and transport carriers.
8. To ensure that no fraud is committed.
9. To ensure timely supply and payment of goods and
reduce inventories
Organization Chart
GANTT CHART
LAYOUT DEPARTMENT
Portfolio Of
Logistic,
Purchasing, And
Warehouse
Logistic
 Logistics management is that part which
plans, implements and controls the
efficient, effective forward and reverse
flow and storage of goods, and services.
 Strategic plans are developed by the
department to support development of fresh
product and manufacturing flow management.
 This helps in bringing raw materials or
semi-finished goods to the premises of the
organization in a safe and proper condition
at an economical cost.
 The department is also responsible for
coordination with suppliers with regard to
scheduling, hedging and timely delivery.
Purchasing
 Purchasing refers to a business or
organization attempting to acquire goods or
services to accomplish the goals of the
enterprise.
 Strategic for purchasing departments are using
to lower costs and improve quality.
 Strategic involves analyzing what products the
company buys in the highest volume, reviewing
the marketplace for those products,
understanding the economics and usage of the
supplier of those products, developing a
procurement strategy, and establishing working
relationships with the suppliers that are much
more integrated than such relationships were
in the past. During this process, purchasing
conducting
Ware House
A ware house is to control the movement and
storage of materials within a warehouse and
process the associated transactions, including
shipping, receiving, put away and picking. Ware
house management system is to provide a set of
computerized procedures to handle the receipt
of stock and returns into a warehouse facility,
model and manage the logical representation of
the physical storage facilities (e.g. racking
etc), manage the stock within the facility and
enable a seamless link to order processing and
logistics management in order to pick, pack and
ship product out of the facility.
Inventory
management
 Inventory management is required at different
locations within a facility or within multiple
locations of a supply network to protect the
regular and planned course of production
against the random disturbance of running out
of materials or goods
 Also concerns the fine lines between
replenishment lead time, carrying costs of
inventory, asset management, inventory
forecasting, inventory valuation, inventory
visibility, future inventory price
forecasting, physical inventory, available
physical space for inventory, quality
management, replenishment, returns and
defective goods and demand forecasting
The criteria in
choosing the supplier
 are
the best depend
price offer, on
 the quality of product,
 the location of the supplier company,
 the good cooperation between the
supplier and our company,
 the guarantee from the supplier which
can always supply the material that
we need in making the cup cake
without any problem.
 the product that supplier produce
must get the certificate from JAKIM
to get Halal logo.
supplier company
for
Nyum – Nyum
Bakery SDN BHD
Material Brand Address and contact suppliers Flavor Price per unit
Butter DAISY Lam Soon Edible Oil Sdn. Bhd RM 7.00/1kg
Wisma DLS,
6 Jln Jurunilai u 1/20,
Hicom – Glenmane Industrial Park, 40150 Shah
Alam, Selangor

Baking powder MFM Malayan Flour Mills Berhad, RM 3.00/1kg


Jln David Sung, Bata Undar,
32200 Lumut, Perak
Sugar PRAI Malaysia Sugar MFG.CO. Bhd, RM 1.25/1kg
798, Main Road 13600, Prai, Malaysia

Eggs Healthy Farm Soon Lee Trading Co, RM 5.60/30 unit


Fresh Eggs No.9, Jalan Desa Aman, Cheras,
56100 Kuala Lumpur
Soda bicarbonates NUR Plasmore Sdn. Bhd, RM 0.90/100g
2 Jln Selesa 1, Tmn Bkt Indah,
58200 Kuala Lumpur
Vanilla essence NUR Plasmore Sdn. Bhd, RM0.90/25ml
2 Jln Selesa 1, Tmn Bkt Indah,
58200 Kuala Lumpur
Cup - Plasmore Sdn. Bhd RM1.70/35
2 Jln Selesa 1, Tmn Bkt Indah 58200 pieces
Kuala Lumpur
Jam or pes Wan Jam Wan Shes Enterprise Blueberry RM3.30/350g
52, 52-1 Jln TU 40,
Strawberry RM3.25/350g
Taman Tasik Utama, 75450, Melaka
Chocolate RM 3.55/350g
Vanilla RM3.30/350g
Total costs for 35 unit of
cup cake for each flavor

 Blueberry= RM 12.71
 Strawberry = RM 12.59

 Chocolate= RM 13.34

 Vanilla= RM 12.71
Total cost for 1 unit of
cup for each flavor

 Blueberry= RM 12.71/35 = RM
0.37
 Strawberry= RM 12.59/35 = RM

0.36
 Chocolate= RM 12.71/35 = RM

0.36
 Vanilla= RM 13.85/35 = RM 0.40
List Of The Prices Of
Products Needed
Item Quantity Price market per unit Total price

Forklift Toyota 1 Rm 60 000 Rm 60000


Lorry Pickup 2 Rm45 000 Rm 90000
Van 2 Rm 20 000 Rm 40000
Bingers Freezer 3 Rm 45 00 Rm 13500
Computer 4 Rm 1500 Rm 6000
Arbitrator 2 Rm 5 000 Rm 10 000
Table and chair 6 Rm 700 Rm 42 00
Hand pallet truck 2 Rm 3 000 Rm 6 000
shelf 5 floors 10 Rm 1 000 Rm 10 000
Total cost Rm 239,700
8.4 Costing transportation
In delivery of cup cakes, a few aspects must be considered to make
our delivery on time to customers and also can minimize the cost in
transportation. Below is the aspect that our department identifies:

(1)The distance of market location and the quantity of product


must be consider in delivery cup cakes for each destination..

(2)The way of location which it are related to connect for each


others destination. In others word, for one trip of delivery it
can supply our product to many place but it depend on the
quantity of cup cakes requirement and the capacity of vehicle.

(3)Choosing the type of transport for delivery of cup cakes which


is depending on the quantity of cup cakes requirement from
customer.
Below is marketing location of cup cake with
their distance from our factory and the
quantity of cup cakes

No Location Distance (KM) Quantity (Unit)

1 Air Keroh 2 2867


2 Bandar hilir 10 2909
3 Peringgit 7 860
4 Bukit Baru 6 380
5 Bukit Beruang 3 330
6 Bukit Katil 6 340
7 Cheng 12 423
8 Batu Berendam 6 409
52 8518
For delivery the cup cake, the transportation that we use is a van and lorry pickup.
Fuel material
Van = petrol
Lorry pickup = diesel

Retail price for fuel material


Diesel = RM 1.70
Petrol - Have two type of petrol which is:
Ron95 = RM1.800 per liter
Ron97 = RM2.050 per liter

So, our department management decide that we choice the petrol type Ron 95 as a
fuel material for our transportation of van.

Assume that,
Van = 18 liter of petrol can be using about 100KM for mileages.
Lorry pickup = 18 liter of diesel can be using about 140KM for mileages.

In delivery cup cakes to customers,


Petrol usage for 1KM,
= 18 liter/100KM
= 0.18 liter/KM

Diesel usage for 1KM,


= 18 liter/140KM
= 0.129 liter/KM
Material
Requirements
Planning (MRP)
Table : On-hand, Usage, Lead time
quantity of cake
Cup Cake Description Quantity per Assembly / Make /
Component number Buy
B-122 Cake 1 M
B- 111 Cup 1 B
B- 103 Jam 25 / 35 g B
Cake Description Quantity per Assembly / Make /
Component Number Buy
B- 221 Butter 4.30 g B
B- 322 Vanilla essence 1 / 35 teaspoon of B
vanilla
B- 142 Baking powder 5.30 g B
B- 154 Sugar 4.30 g B
B- 121 Soda bicarbonates 0.5 / 35 B
teaspoon
B- 133 Eggs 3 / 35 B
Table : On-hand, Usage, Lead time
quantity of cake
MRP Table
Component Cup Cake

LT : 1 Day DAY
Usage : 1 1 2 3 4 5
Gross Requirements 9300

Schedule Receipts

On-Hand 0

Net Requirements 9300

Planned-Order 9300
Receipts
Planned-Order 9300
Releases
Component Cake
LT : 1 Day DAY
Usage : 1 1 2 3 4 5
Gross Requirements 9300

Schedule Receipts

On-Hand 0

Net Requirements 9300

Planned-Order Receipts 9300

Planned-Order Releases 9300


Component Cup
LT : 1 Day DAY
Usage : 1 1 2 3 4 5
Gross Requirements 9300

Schedule Receipts

On-Hand 27900 27900 27900 27900


Net Requirements 18600

Planned-Order Receipts 18600

Planned-Order Releases 18600


Component Jam
LT : 1 Day DAY
Usage : 25 / 35 g 1 2 3 4 5
Gross Requirements 292.75

Schedule Receipts

On-Hand 698.25 698.25 698.25 698.25


Net Requirements 405.5

Planned-Order Receipts 405.5

Planned-Order Releases 405.5


Component Butter
LT : 1 Day DAY
Usage : 4.3 g 1 2 3 4 5
Gross Requirements 39.9

Schedule Receipts

On-Hand 119.7 119.7 119.7


Net Requirements 79.8

Planned-Order Receipts 79.8

Planned-Order Releases 79.8


Component Vanilla DAY
Essence
LT : 1 Day
Usage : 1 / 35 1 2 3 4 5
Gross Requirements 2.66

Schedule Receipts

On-Hand 7980 7980 7980


Net Requirements 7977.34

Planned-Order Receipts 7977.34

Planned-Order Releases 7977.34


Component Baking DAY
Powder
LT : 2 Day
Usage : 5.3 g 1 2 3 4 5
Gross Requirements 49.29

Schedule Receipts

On-Hand 147.87 147.87 147.87


Net Requirements 98.58

Planned-Order Receipts 98.58

Planned-Order Releases 98.58


Component Sugar DAY
LT : 2 Day
Usage : 4.3 g 1 2 3 4 5
Gross Requirements 39.9

Schedule Receipts

On-Hand 119.7 119.7 119.7


Net Requirements 79.8

Planned-Order Receipts 79.8

Planned-Order Releases 79.8


Component Soda DAY
Bicarbonates
LT : 1 Day
Usage : 0.5 / 35 1 2 3 4 5
Gross Requirements 2.128

Schedule Receipts

On-Hand 6.384 6.384 6.384


Net Requirements 4.256

Planned-Order Receipts 4.256

Planned-Order Releases 4.256


Component Eggs DAY
LT : 1 Day
Usage : 3 / 35 1 2 3 4 5
Gross Requirements 798

Schedule Receipts

On-Hand 2394 2394 2394


Net Requirements 1596

Planned-Order Receipts 1596

Planned-Order Releases 1596


Economic Order Quantity
Model
 Basic economic order quantity model

The inventory cycle


For the inventory cycle the order size,
usage rate, reorder point, and lead
time
Raw material Order size Usage rate(per day) Reorder size Lead time

Sugar 119.7kg 4.3g*9300=39.9kg 79.8kg 2

Butter 119.7kg 4.3g*9300=39.9kg 39.9kg 1

Cup 27900piece 9300 9300 1

Baking powder 147.87kg 5.3g*9300=49.29kg 98.58kg 2

Vanilla Essence 7.98L 10ml*266=2.66L 2.66L 1

Soda bicarbonate 6.384kg 8g*266=2.128kg 2.128kg 1

Eggs 798 3*266=798 798 1

Jam 698.25kg 875*266=232.75kg 232.75kg 1


Flow Chart
( Processing in
department )
Requirement of material form another
department.

Purchasing will select the best of material or


the supplier.

Quotation from the supplier.

Yes
The material is suitable with the price. No

Request the modal at the finance department.

Get the material and save in warehouse

Production department request their order.

Product
(Cup cake)

Store the product.

Marketing department request the order from customer and


deliver the cup cake.
Flow Chart ( receive
Order )
Receive order.

Purchasing

Process the order No


(Checking)

Yes

Send the order to the


department
THANK YOU