Important of Warehousing
WAREHOUSING
Q1. Define Warehousing or what is Warehousing?
Definition Warehousing is that part of firm’s logistics System that stores products at and between point-of-origin and point of consumption, and provides information to management of the status, condition, and disposition of items being stored.
A warehouse is a point in the logistics system where a firm stores or holds raw materials, semi- finished goods, or finished goods for varying periods of time.
In the macroeconomic sense, warehousing performs a vital function. It creates time utility for raw materials, industrial goods and finished products. The proximity of market-oriented warehousing to the customer allows a firm to serve the customer with shorter lead times. This warehousing function continues to be increasingly important as companies and industries use customer services as a dynamic, value-adding competitive tool.
Q2. What is the importance of warehousing? (Rationale for Warehouses)
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Achieve transportation economics
•
Achieve production economics
•
Take advantage of quantity discounts
•
Accomplish least total logistics cost
•
Maintain steady source of supplies
•
Support customer service policies
•
Meet changing demand(market) conditions
•
Reduce time & space distance between supplier & customer
Q3. What is the need for warehousing?
A) Conventional Approach: (Push Concept)
•
Protection against delays & uncertainty in transportation
•
Availability of products on desired time & at desired place
•
Provide adjustment between the time of production & use of the product
•
Serve as a reservoir of goods
B) Modern Approach: (Pull Concept)
•
Movement of products
•
Warehouse is a location where inputs received from production are converted into outputs to the customers, at shortest possible time
•
Warehouse is defined as a location of temporary storage facility & from where they are dispatched with main objective of maintaining the flow of
Q1. Define Warehousing or what is Warehousing?
Definition Warehousing is that part of firm’s logistics System that stores products at and between point-of-origin and point of consumption, and provides information to management of the status, condition, and disposition of items being stored.
A warehouse is a point in the logistics system where a firm stores or holds raw materials, semi- finished goods, or finished goods for varying periods of time.
In the macroeconomic sense, warehousing performs a vital function. It creates time utility for raw materials, industrial goods and finished products. The proximity of market-oriented warehousing to the customer allows a firm to serve the customer with shorter lead times. This warehousing function continues to be increasingly important as companies and industries use customer services as a dynamic, value-adding competitive tool.
Q2. What is the importance of warehousing? (Rationale for Warehouses)
•
Achieve transportation economics
•
Achieve production economics
•
Take advantage of quantity discounts
•
Accomplish least total logistics cost
•
Maintain steady source of supplies
•
Support customer service policies
•
Meet changing demand(market) conditions
•
Reduce time & space distance between supplier & customer
Q3. What is the need for warehousing?
A) Conventional Approach: (Push Concept)
•
Protection against delays & uncertainty in transportation
•
Availability of products on desired time & at desired place
•
Provide adjustment between the time of production & use of the product
•
Serve as a reservoir of goods
B) Modern Approach: (Pull Concept)
•
Movement of products
•
Warehouse is a location where inputs received from production are converted into outputs to the customers, at shortest possible time
•
Warehouse is defined as a location of temporary storage facility & from where they are dispatched with main objective of maintaining the flow of