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Warehousingmanagement PrivateWarehouse Aprivatewarehouseisoperatedbythefirmowningtheproduct Theactualfacility however maybeownedorleased Oftenitisnotpossibletofindawarehouseforleasethatfitstheexactrequirementsofafirm ThebenefitsofPrivateWarehouse Themajorbenefitsofprivatewarehousingincludecontrol flexibility cost andotherintangiblebenefits 1 Privatewarehousesprovidemorecontrolsincetheenterprisehasabsolutedecision makingauthorityoverallactivitiesandprioritiesinthefacility Drawbacksofprivatewarehouse 1 Whenmanagementperformanceisjudgedaccordingtoreturnoninvestment ROI theuseofprivatewarehousingneedshighandsteadydemandvolumes 2 highfixedcost PublicWarehouse Onthebasisoftherangeofspecializedoperationsperformed publicwarehousesareclassifiedas 1 generalmerchandisewarehouse 2 refrigeratedwarehouse 3 specialcommoditywarehouse 4 bondedwarehouse and 5 householdgoodsandfurniturewarehouse PublicWarehouse GeneralmerchandisewarehouseisdesignedtohandIegeneralpackagecommoditiessuchaspaper metalmaterial andmechanicalandelectricalproducts Refrigeratedwarehouse eitherfrozenorchilled handlesandmaintainsfood medicalitems andchemicalproductswithspecialtemperaturerequirements Specialcommoditywarehouseisdesignedtohandlebulkmaterialoritemswithspecialhandlingconsiderations suchastiresorclothing PublicWarehouse Bondedwarehouseislicensedbythegovernmenttostoregoodspriortopaymentoftaxesorduties Finally ahouseholdgoodsorfurniturewarehouseisdesignedtohandleandstorelarge bulkyitemssuchasappliancesandfurniture ThebenefitsofPublicWarehouse 1 Fromafinancialperspective publicwarehousingmayhavealowervariablecostthancomparableprivatelyoperatedfacilities 2 Whenmanagementperformanceisjudgedaccordingtoreturnoninvestment ROI theuseofpublicwarehousingcansubstantiallyincreaseenterprisereturn 3 Publicwarehousingoffersflexibilityinthatitiseasytochangethelocation size andnumberoffacilities allowingafirmtoquicklyrespondtosupplier customer andseasonaldemands ContractWarehouse Contractwarehousingcombinesthebestcharacteristicsofbothprivateandpublicoperations 1 Contractwarehouseoperationscanprovidebenefitsofexpertise flexibility andeconomiesofscalebysharingmanagement labor equipment andinformationresourcesacrossanumberofclients ContractWarehouse 2 Contractwarehouseoperatorsarealsoexpandingthescopeoftheirservicestoincludeotherlogisticsactivitiessuchastransportation inventorycontrol orderprocessing customerservice andreturnsprocessing 2DistributionCenter DCActivities Receiving Putaway Storage OrderSelection Checking PackingandMarking StagingandOrderConsolidation Shipping Replenishment ClericalandAdministrative Receiving Physicallyacceptingmaterial unloadingthatmaterialfrominboundtransportationmode verifyingquantityandconditionofthematerialanddocumentingthisinformationasrequired Putaway Removingthematerialfromthereceivingdock orotherlocationofreceipt transportingthematerialtoastoragearea recordingthismovement andidentifyingwherethematerialhasbeen Storage Theretentionofproductsforfutureuseorshipment OrderSelection Selectingorpickingtherequiredquantityofspecificproductsformovementtoapackingareausuallyinresponsetooneormoreshippingordersanddocumentingthatthematerialwasmoved Checking Verifyinganddocumentingorderselectionintermsofproductnumberandquantity Insomecases thisactivityincludestheverificationofproductconditionorquality PackingandMarking Packingorunitizingoneormoreitemsofanorderintoanappropriatecontainerandmarkingandlabelingthecontainerwithcustomershippingdestinationdataaswellasotherinformationthatmayberequired StagingandConsolidation Physicallymovingmaterial usuallyonanorderbyorderbasis fromthepackingareatoastagingareabasedonaparticularoutboundvehicleordeliveryroute oftenforshipmentconsolidationpurposes Shipping Loadinganoutboundvehiclewithmaterialfromthestagingareaandcompletingthedocumentationassociatedwiththemovement Replenishment Relocatingmaterialfromabulkstorageareatoanorder pickareaanddocumentingthisrelocation ClericalandAdministrative Severalrelatedactivitiesnecessaryforthewarehouseoperations suchasupdatinginventoryfiles maintaininglaborandequipmentrecords cyclecounting etc WarehouseLayoutObjectives UsespaceefficientlyAllowforthemostefficientmaterialhandlingProvidethemosteconomicalstorageCostofequipment BuiltoutvsbuildupUseofspace SpacedevotedtoaislesvsspacedevotedtostorageDamagetomaterialHandlinglabor Labor intensivevsmechanizationvsautomationOperationalefficiency Picker to partvspart to pickerProvidemaximumflexibility inordertomeetchangingstorageandhandlingrequirementsMakethewarehouseamodelofgoodhousekeeping Onatour youseethe butyoudonotseethe Wetrynowtoshowyouthe Trade offs Builtoutvsbuildup Costofequipment Buildout locationwherelandisexpensiveBuildup ahigherwarehouseneedsspecialequipmentsuchashigh stackingtruck whichgenerallycostmorethantheconventionalequipment Trade offs Labor intensivevsmechanizationvsautomation Handlinglabor Labor intensive laborcostcontinuestoincreaseMechanization referstoequipmentratherthanreplacemanualworkTureautomation anabsenceofhumanintervention suchasAGVs automaticguildedvehicles Trade offs Spacedevotedtoaislesvsspacedevotedtostorage Useofspace Spacedevotedtoaisles reducethechancesofaccidentsandproductdamage buttheyincreasethetraveldistanceswithinafacility Trade offs Spacedevotedtostorage narroweraislescanincreasethespaceutilizationofafacilit

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