HOW DOES WAREHOUSE IF LOCATED NEAR BY MARKET

REDUCE INVENTORY LEVEL OF DISTRIBUTION POINT AND

RETAILER POINT

PRESENTED BYNAZNEEN-53MAYANK SHARMA -59RUPESH MISAL -71PRATHAMESH NAKHAWA-78 NIKHIL JAGADE -176

WHAT IS INVENTORY

TYPES OF INVENTORIESRAW MATERIAL PURCHASED PARTS AND SUPPLIERSFINISHED GOODSWORK-IN-PROGRESS (PARTIALLY

COMPLETED PRODUCTS)ITEMS BEING TRANSPORTEDTOOLS AND EQUIPMENT

NATURE OF INVENTORIESRAW MATERIAL – Basic input that are

converted into finished product through the manufacturing process.

WORK IN PROGRESS- Semi-manufactured products need some more works before they become finished goods for sale.

FINISHED GOODS- Completely manufactured products ready for sale.

SUPPLIES- Office and plant materials not directly enter production but are necessary for production process and do not involve significant investment.

TWO FORMS OF DEMAND

INVENTORY COSTS

WAREHOUSING Storage or warehousing provides the place

utility as part of logistics for any business and along with transportation is a criteria component of customer service standards

REASONS FOR WAREHOUSINGTo support the companies customer policy To maintain source of supply without

interruptions.To achieve transportation economies To support changing market condition and

sudden change in demand.To provide customers with the right mix of

products at all times and all locationsTo ensure least logistics cost for a desired

level of customer service.

BENEFITS OF WAREHOUSINGCONSOLIDATION WAREHOUSIG

Contd..BREAK BULK WAREHOUSING

WAREHOUSE LOCATION STRATEGY

LOCATION SELECTIONLocation of major marketsNature of product being distributedQuality & Quantity of labor availablePotential for expansionCost and availability of utilities

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