Warehousing Including Warehousing Decision in Detail and Distribution

7/28/2019 Warehousing Including Warehousing Decision in Detail and Distribution

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Warehousing including warehousing decisionin detail and distribution centers

Nimisha.M.N

MBA.FT

Roll no.23

s3


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Introduction Definition of warehouse Functions of warehouse

Basic warehouse decisions Distribution centers Conclusion References

CONTENTS


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A process of transforming data into informationand making it available to users in a timelyenough manner to make a difference

Technique for assembling and managing data

from various sources for the purpose ofanswering business questions. Thus makingdecisions that were not previous possible

A decision support database maintained

separately from the organizations operationaldatabase

INTRODUCTION


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Definition of Data Warehouse?

A single, complete and consistentstore of data obtained from avariety of different sources made

available to end users in a whatthey can understand and use in abusiness context


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Data is historical or point-in-time.

Optimized for inquiry rather than update.

Used to manage and control business.

Use of the system is loosely defined and can bead-hoc.

Used by managers and end-users to understand

the business and make judgments.

Decision Support


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Warehouse :

Accountable amount of inventory

Basic functions are movement storage

It saves time

Nature and Importance


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More modern term.

Emphasize flow and movement.

Stresses rapidity of product movement.

More accurately characterizes todays

logistic environment.

Distribution centers:


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Consolidation Product mixing Service/Product availability

Protection Against Contingencies Smoothing Manufacturing Operations

Basic function


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Ownership Public versus contract versus private

Centralized or Decentralized Warehousing How many Location Size Layout What products where

Basic Warehouse Decisions-Cost Trade-off Framework


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Basic Warehousing Decisions


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The Ownership Decision

Public warehousingcosts mostly allvariable.

Privatewarehousing costshave a higher fixedcost component.

Thus privatewarehousingvirtually requires a

high and constantvolume


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Factors to consider Throughput volume

Stability of demand

Density of market area to be served

Security and control needs

Customer service needs

Multiple use needs of the firm

The Ownership Decision


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Rationale for Public Warehousing Limited capital investment

Flexibility

Public Warehousing Services Bonded warehousing

Field warehouses

Public Warehousing


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Public warehousing regulation: Liability

Receipts Public warehousing rates based upon:

Value Fragility

Potential damage to other goods

Volume and regularity

Weight density

Services required

Public Warehousing


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Communication problem In effective communication Lack of standardization in conceptual

agreement

Availability of specialized services Space availability

Disadvantages of Publicwarehousing


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Allows firms to integrate warehousefunction more easily

Highly flexible

Less cost Organizations can make greater use of its

Human Resources.Tax benefits

Advantages of Privatewarehousing


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It results in

Too costly because of its fixed size and fixedcostLoss of valuable business opportunityLoss of customer service

Loss of salesLoss of flexibility in its strategic location

options

Disadvantages of Privatewarehousing


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Partnership arrangement between user andprovider of warehouse service

Defined as

Long termMutually beneficial arrangementProvides unique and logistics servicesVendor and client shares the risk associated

with operation

Contract warehousing


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Factor centralized decentralized

Sustainability Low High

Product value High Low

Purchase size Large Small

Special warehousing Yes No

Product line Diverse Limited

Customer services Low High

Factors Affecting the Numberof Warehouses


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A distribution center for a set of isproducts a warehouse or otherspecialized building, oftenwith refrigeration or air conditioning, which

is stocked with products (goods) to beredistributed to retailers, to wholesalers, ordirectly to consumers. A distribution centeris a principal part, the order processing

element, of the entire orderfulfillment process.

Distribution center


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A warehouse is designed to accommodatelong-term storage, whereas a distributioncenter is set up to distribute supplies:product comes in and within a week or so,

the majority of it is shipped out (to stores,for instance). It's constantly moving throughthe building--it is received, used to fillorders and shipped out as new product is

arriving.

Differences between warehouse anddistribution center


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Distribution centers are

The foundation of a supply network, as theyallow a single location to stock a vast numberof products

A typical retail distribution network operateswith centers set up throughout a commercialmarket, with each center serving a number ofstores.

Distribution centers are usually thought of asbeing demand driven. A distribution centercan also be called a warehouse, a DC, afulfillment center, a cross-dock facility, a bulkbreak center, and a package handling center.


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A warehouse is a commercial building forstorage of goods. Warehouses are usedby manufacturers,importers, exporters, wholesalers, transport businesses and customs.

Sometimes warehouses are designed for theloading and unloading of goods directlyfrom railways, airports, or seaports.

Conclusion


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Sunil chopra,Peter Meindl,Supply chainmanagement,2002, 3rd edition

EI,Schragenheim,H.william Dettmer,J.WaynePaterson,Supply chain management at

Wrapspeed,2009,1st edition Donald Waters,Logistics-An introduction to supply

chain management,2004,2nd editionJoohn J Coyle,C.John Langely,Brain

J.Gibson,Robert A. Novack,Edward J.Bardi,Alogistic approach to supply chainmanagement,2009,5th edition

REFERENCES


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Warehousing Including Warehousing Decision in Detail and Distribution

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