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Presented By
M.Amir Sohail
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Warehousing:-
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Reasons for warehousing:-
To support the company’s customer policy.
To provide customers with the right mix of products at all times and all
locations.
1) Design criteria:
b) Height utilization,
c) Product flow
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Warehouse Operating
Principles:-
2) Handling technology
a) Movement continuity,
b) Movement scale economies.
3) Storage plan
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Warehouse Activities
• Receive goods
• Identify goods
• Hold goods
• Pick goods
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Types of warehouses:-
It includes:
1) Private warehouses,
2) Public warehouses,
3) Contract warehouses
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The Warehouse location
strategies:-
1) Market positioned:
a) Order Cycle time
b) Transportation cost
c) Sensitivity of the product
d) Order sizes
2) Product positioned:
a) Perishability of the raw materials
b) Number of products in the product mix
c) Assortments ordered by the customers from the
product mix
d) Transportation consolidation rates
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3) Intermediately positioned:
Benefits of warehousing:-
Consolidation.
Processing / Postponement.
Stockpiling.
Service benefits
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Warehousing Strategy
Other qualitative factors that should be considered include:
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INVENTORY MANAGEMENT
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Definitions:
Inventory-
A physical resource that a firm holds in stock with the intent
of selling it or transforming it into a more valuable state.
Inventory System-
A set of policies and controls that monitors levels of inventory
and determines what levels should be maintained, when stock
should be replenished, and how large orders should be
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Functions of Inventory
1. To separate various parts of the production process
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Types of Inventory
Raw material
Purchased but not processed
Work-in-process
Undergone some change but not completed
A function of cycle time for a product
Maintenance/repair/operating (MRO)
Necessary to keep machinery and processes productive
Finished goods
Completed product awaiting shipment
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The Material Flow Cycle
Cycle time
95% 5%
Input Wait for Wait to Move Wait in queue Setup Run Output
inspection be moved time for operator time time
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Inventory Management
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Why hold inventory?
• Improve customer service
• Transportation savings
demand, etc.)
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Categories of
Cycle stock Inventory Safety stock
Anticipation Pipeline
inventory stock
Dead stock
Decoupling stock
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1. Cycle Stock :
Because of the economies of scale involved in production and
transportation it makes sense to produce and transport goods in
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4. Decoupling Stock:
5. Dead Stock:
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6. Anticipation Stock :
It consist of stock accumulated in advance of expected peak in
sales or to take care of some special event that does not occur
on regular basis.
It is of two types
1. Seasonal Stock
2. Speculation Stock
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Distribution of presentation