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WarehousingmanagementPrivateWarehouseAprivatewarehouseisoperatedbythefirmowningtheproduct.Theactualfacility,however,maybeownedorleased.Oftenitisnotpossibletofindawarehouseforleasethatfitstheexactrequirementsofafirm.ThebenefitsofPrivateWarehouseThemajorbenefitsofprivatewarehousingincludecontrol,flexibility,cost,andotherintangiblebenefits.(1)Privatewarehousesprovidemorecontrol
sincetheenterprisehasabsolutedecision-makingauthorityoverallactivitiesandprioritiesinthefacility.Drawbacksofprivatewarehouse(1)Whenmanagementperformanceisjudgedaccordingtoreturnoninvestment(ROI),theuseofprivatewarehousingneedshighandsteadydemandvolumes(2)highfixedcostPublicWarehouseOnthebasisoftherangeofspecializedoperationsperformed,publicwarehousesareclassifiedas(1)generalmerchandisewarehouse,(2)refrigeratedwarehouse,(3)specialcommoditywarehouse,(4)bondedwarehouse,and(5)householdgoodsandfurniturewarehouse.PublicWarehouse…Generalmerchandise
warehouseisdesignedtohandIegeneralpackagecommoditiessuchaspaper,metalmaterial,andmechanicalandelectricalproducts.Refrigeratedwarehouse(eitherfrozenorchilled)handlesandmaintainsfood,medicalitems,andchemicalproductswithspecialtemperaturerequirements.Specialcommoditywarehouseisdesignedtohandlebulkmaterialoritemswithspecialhandlingconsiderations,suchastiresorclothing.PublicWarehouse…Bondedwarehouseislicensedbythegovernmenttostoregoodspriortopaymentoftaxesorduties.Finally,ahouseholdgoodsorfurniturewarehouseisdesignedtohandleandstorelarge,bulkyitemssuchasappliancesandfurniture.ThebenefitsofPublicWarehouse(1)Fromafinancialperspective,publicwarehousingmayhavealowervariablecostthancomparableprivatelyoperatedfacilities.(2)Whenmanagementperformanceisjudgedaccordingtoreturnoninvestment(ROI),theuseofpublicwarehousingcansubstantiallyincreaseenterprisereturn.(3)Publicwarehousingoffersflexibility
inthatitiseasytochangethelocation,size,andnumberoffacilities,allowingafirmtoquicklyrespondtosupplier,customer,andseasonaldemands.ContractWarehouseContractwarehousingcombinesthebestcharacteristicsofbothprivateandpublicoperations.(1)Contractwarehouseoperationscanprovidebenefitsofexpertise,flexibility,andeconomiesofscalebysharingmanagement,labor,equipment,andinformationresourcesacrossanumberofclients.ContractWarehouse…(2)Contractwarehouseoperatorsarealsoexpandingthescopeoftheirservicestoincludeotherlogisticsactivitiessuchastransportation,inventorycontrol,orderprocessing,customerservice,andreturnsprocessing.§2DistributionCenterDCActivities①Receiving②Putaway③Storage④OrderSelection⑤Checking⑥PackingandMarking⑦StagingandOrderConsolidation⑧Shipping⑨Replenishment⑩ClericalandAdministrative ①Receiving:Physicallyacceptingmaterial,unloadingthatmaterialfrominboundtransportationmode,verifyingquantityandconditionofthematerialand
documenting
thisinformationasrequired.②Putaway:
Removingthematerialfromthereceivingdock(orotherlocationofreceipt),transportingthematerialtoastoragearea,recordingthismovement,andidentifyingwherethematerialhasbeen.③Storage:Theretentionofproductsforfutureuseorshipment.④OrderSelection:Selectingorpickingtherequiredquantityofspecificproductsformovementtoapackingareausuallyinresponsetooneormoreshippingordersanddocumentingthatthematerialwasmoved⑤Checking:
Verifyinganddocumentingorderselectionintermsofproductnumberandquantity.Insomecases,thisactivityincludestheverificationofproductconditionorquality.⑥PackingandMarking:
Packing
orunitizingoneormoreitemsofanorderintoanappropriatecontainerandmarkingandlabelingthecontainerwithcustomershippingdestinationdataaswellasotherinformationthatmayberequired.⑦StagingandConsolidation:Physicallymovingmaterial,usuallyonanorderbyorderbasis,fromthepackingareatoastagingareabasedonaparticularoutboundvehicleordeliveryroute,oftenforshipmentconsolidationpurposes.⑧Shipping:
Loadinganoutboundvehiclewithmaterialfromthestagingareaandcompletingthedocumentationassociatedwiththemovement.⑨Replenishment:
Relocatingmaterialfromabulkstorageareatoanorder-pickareaanddocumentingthisrelocation.⑩ClericalandAdministrative:Severalrelatedactivitiesnecessaryforthewarehouseoperations,suchasupdatinginventoryfiles,maintaininglaborandequipmentrecords,cyclecounting,etc.WarehouseLayoutObjectivesUsespace
efficientlyAllowforthemostefficientmaterialhandlingProvidethemosteconomicalstorageCostofequipment→BuiltoutvsbuildupUseofspace→SpacedevotedtoaislesvsspacedevotedtostorageDamagetomaterialHandlinglabor→Labor-intensivevsmechanizationvsautomation
Operationalefficiency→Picker-to-partvspart-to-pickerProvidemaximumflexibility,inordertomeetchangingstorageandhandlingrequirementsMakethewarehouseamodelofgoodhousekeepingOnatour,youseethebutyoudonotseetheWetrynowtoshowyoutheTrade-offsBuiltoutvsbuildup〔Costofequipment〕Buildout→locationwherelandisexpensiveBuildup→ahigherwarehouseneedsspecialequipmentsuchashigh-stackingtruck,whichgenerallycostmorethantheconventionalequipment.Trade-offsLabor-intensivevsmechanizationvsautomation〔Handlinglabor〕Labor-intensive→laborcostcontinuestoincreaseMechanization→referstoequipmentratherthanreplacemanualworkTureautomation→anabsenceofhumanintervention,suchasAGVs(a
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