Warehousing management.Definition: part of a firm's logistics system that storesproducts (raw materials, parts, goods-in-process,finished goods) at and between points of origin andpoint of consumption..Warehousing and transportation are substitutes foreach other..Tradeoff of warehousing: a new layer of costs &shorter-haul transportation versus quicker response &greaterconvenience
Warehousing management •Definition: part of a firm’s logistics system that stores products (raw materials, parts, goods-in-process, finished goods) at and between points of origin and point of consumption. •Warehousing and transportation are substitutes for each other. •Tradeoff of warehousing: a new layer of costs & shorter-haul transportation versus quicker response & greater convenience
Why is warehousing desirable?1. Regrouping function in quantities and assortments:Accumulating (bulk-making): bring togethersimilar stocks from different sourcesAllocating (bulk-breaking): break largequantities into smaller onesAssorting: build up a variety of differentproducts fro resaleto particular customersSorting: separate products into grades andqualities desired by different target markets
Why is warehousing desirable? 1. Regrouping function in quantities and assortments: • Accumulating (bulk-making): bring together similar stocks from different sources • Allocating (bulk-breaking): break large quantities into smaller ones • Assorting: build up a variety of different products fro resale to particular customers • Sorting: separate products into grades and qualities desired by different target markets
Why is warehousing desirable?2. Patterns of production and consumption do notcoincide and warehousing serves to match differentrates of flow. eg: canned fruit3.Storage for surplus purchase4. Value-added services: assembly, light-manufacturing.product testing, affixing state tax stamps,repackaging and labeling
Why is warehousing desirable? 2. Patterns of production and consumption do not coincide and warehousing serves to match different rates of flow. eg: canned fruit 3. Storage for surplus purchase 4. Value-added services: assembly, light-manufacturing, product testing, affixing state tax stamps, repackaging and labeling
Design considerations inwarehousing·P304 top and side views of distribution centerGeneral considerations:.To use common sense.eg.Prior to designing the quantity and character ofgoods must be known. eg·Different purposes of storage or distribution affectsthe space layout. eg
Design considerations in warehousing •P304 top and side views of distribution center •General considerations: •To use common sense. eg •Prior to designing the quantity and character of goods must be known. eg •Different purposes of storage or distribution affects the space layout. eg
A trend of cross-docking·Definition:aprocess whereaproduct isreceived in a facility, occasionally with otherproducts going to the same destination, thenshipped at the earliest opportunity, without goinginto long-term storage·It emphasizes pallet loads of products·P307
A trend of cross-docking •Definition: a process where a product is received in a facility, occasionally with other products going to the same destination, then shipped at the earliest opportunity, without going into long-term storage. •It emphasizes pallet loads of products. •P307