Warehouse Introduction

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Value adding roles of warehouse
Advantage and limitation in warehouse
Documentation in goods receiving

Add value in warehouse
Breaking bulk
-taking delivery of bulk consignment and issuing in smaller lots to customers or users -more efficient matching of demand with supply
Creating Bulk
-goods that produce in different locations can be grouped together into large lots for economic shipment to the users -accumulation and aggregation of these smaller supply quantities Eg: milk, vegetables, latex and many other natural products are brought together in this way Smoothing

-storage can enable material and components would be supplied to carry out production when needed -store the finished goods until the customer needs them
Combing
-keep different products to allow users to select according to their preferences

The role of warehousing
1) transportation consolidation:
-serve as a transportation consolidation facility
-transport LTL into a warehouse→consolidate them into full loads→transport them out again -saving transportation costs

2) stockpiling(儲備物資)
-acts as a reservoir for production overflow
-this function can take a variety of forms, including :
-Seasonal production-level demand
-Corn: harvested once a year while demand is fairly uniform throughout the yr -level production-seasonal demand
-Sunscreen: high demand for one season but low demand the rest of the year -manufactured throughout the year and warehoused to anticipate the peak season

3) product mixing
-customers order a variety of products →W picks all the products ordered and transport them as one shipment
-DC supplies each retail outlet with a customized mix of products -increase order filling and order delivery efficiency

4) facilitate production
-assist production by receiving a product almost complete and then performing final subassembly based on local customer demand

5) contingency(意外事故) protection
-act as safety valves in plant strikes, supplier stockouts or transportation delays -store extra inventory to reduce the chances of a stockout -forestall搶先行動以破壞(或阻止); 先發制(人) production line shutdowns by storing additional raw material

6)smooth out production runs
-reduce total production cost per unit with long production runs -store the products that outpaces the current demand

7) provide customer service
- an effective W system means quicker delivery, fewer stockout&better customer service -higher levels of customer satisfaction and more sales

Documentation in goods receiving

Fixed system
-the place of storage of each item is more of less static
-products are stored in permanent locations within the warehouse Advantages:
1 staff becomes accustomed to the general layout of materials 2 easy to find the items
3 items of a similar nature are stored together
4 convenient for maintenance materials and spares

Disadvantage:
1 sufficient accommodation must be set apart to provide for a reasonable variation in the quantity of each stock item carried 2 difficult to utilize the available storage space to the maximum

Random location system
* Items are placed in the closest available slot, bin, or rack * They are then retrieved on a first-in, first-out basis

Advantages
1 allows maximum usage of the available storage space
2 particularly suitable for fast moving materials

Disadvantages
1 not convenient if there are major differences in the sizes, shapes and weights of the items being handled 2 if the stored items become slow moving materials, it will affect the efficiency of working performance since the items have occupied the space for a certain period

Objective of material handling
1 Increase effective capacity
* Increase the W facility’s usable capacity, minimize the w’s operating cost First aspect:
* Use the building’s height as much as possible
* Waste the space by not...
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