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Warehousing

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PRESENTED BY :-

NAME SANDHYA MAHADIK BIJITTA GLORIET D.K RANJIT CHAUHAN KHALID RAJESH NAIR APSARA BHASKAR

ROLL NO. 9 39 19 59 29 49

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Introduction

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DEFINITION

Warehouse is performance of administrative and physical functions associated with storage of goods and materials.

It is also a commercial building for storage of goods.

It is used for: Switching facility Long term storage house

Important steps in logistic network selection is decided on centralized or decentralized.

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OBJECTIVE

Maximum utilization of storage space. Higher labor productivity Maximum asset utilization Reduction in material handling Reduction in operating cost. Increased inventory turnover Reduced order filling time

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TYPES OF WAREHOUSES

3 major types

Private warehouse Public warehouse Contract warehouse

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11.Private Warehousing.Private Warehousing

• A firm producing or owning the goods owns private warehouses

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Advantages & Disadvantages of Private Warehousing

Advantages :• Better control over the movement and

storage of products.• Less occurrence of error.

Disadvantages:• Higher operation cost than public

warehouse.

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22.Public Warehousing.Public Warehousing

• A public warehouse which is owned by government, rents space to individuals or firm for storage of goods.

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Advantages

• Less expensive and more efficient.• Easily available & strategically located.• Flexibility.• The overall cost of warehousing per

unit works out to a lower figure.• Quick facilities.• User pays only for the space and

services he use.

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33.Contract Warehouse.Contract Warehouse

• Contract warehousing is a specialized form of public warehousing

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Distinguish betweenPrivate Public Contract

Investment High No Very little

Flexibility Material handling, storage & thought planning.

Location Location

Cost per unit stored

Inversely related to volume

Low Inversely related to volume.

Level of control

High Low High

Adequacy of goods stored

High Low High

Risk Due to change in market demand or consumption center.

Minimal Minimal

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WAREHOUSE LOCATION

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Classification

• Market-positioned warehouses

• Manufacturing-positioned Warehouses

• Intermediately-positioned Warehouses

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Factors governing the warehouse locations

• Availability of services• Land cost• Availability of transport linkages for example, to a rail siding• Availability of utilities of water and power• Taxes and insurance cost• Expansion space availability• And soil strength and lay off land for drainage.

FUNCTIONS OF WAREHOUSING

• CONSOLIDATION• BREAK BULK• CROSS DOCKING• PRODUCT MIXING• STOCK PILING• POSTPONEMENT • POSITIONING• ASSORTMENT• DECOUPLING• SAFETY STOCKING

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Types of warehouse storage systems

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1. Pallet rack

• Material handling storage aid system designed to store materials on pallets or “skids”.

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2. Mezzanine (architecture)

• In architecture, a mezzanine or entresol is an intermediate floor between main floors of a building, and therefore typically not counted among the overall floors of a building. Often, a mezzanine is low-ceilinged and projects in the form of a balcony. The term is also used for the lowest balcony in a theatre, or for the first few rows of seats in that balcony.

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AAdvantages of warehousevantages of warehouse

• Protection and Preservation of goods • Regular flow of goods • Continuity in production • Convenient location • Easy handling • Useful for small businessmen • Creation of employment • Facilitates sale of goods • Availability of finance • Reduces risk of loss

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THE NUMBER OF WAREHOUSES

• The number of warehouses is another decision parameter impacting a number of cost variables and customer service

• If customer service is taken in cost terms as cost of customer dissatisfaction, the number of warehouses will affect transportation, inventory, warehousing and customer dissatisfaction costs.

• The increasing number of warehousing leads to increasing customer service levels, thus, decreasing customer dissatisfaction cost.

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Automation and optimization

Some warehouses are completely automated, and require no workers inside

automated conveyors and automated storage and retrieval machines coordinated by programmable logic controllers and computers running logistics automation software

For a warehouse to function efficiently, the facility must be

properly slotted.

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Size of warehouse

• Many factors influence how large the warehouse should be.

• 1st it is necessary to define how size is measured.

• In general size can be defined in terms of square footage or cubic space.

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Important factors

• Customer service level.• Size of market.• Number of product marketed.• Size of the product.• Material handling system used.• Production lead time.• Office area in warehouse.• Types of rakes and shelves used.

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Warehouse layout & design.

• A good warehouse layout increase output, improve product flow, reduced cost, improve service to customer, and provide better employee working condition.

• Good warehouse layout design involve the use of automated equipment such as conveyor system to handle large product packed in a carton.

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Product flow

• Handling technology

• Storage plan

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Warehouse layout product

• In warehouse layout product are grouped according to :-

1. Compatibility

2. Complimentary

3. Popularity.

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Warehousing in indiaWarehousing in india

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SQUARE ROOT LAWSQUARE ROOT LAW

The Square Root Law states that:

“The total safety stock inventories in the future number of facilities can be approximated by multiplying the total amount of inventory at existing facilities by the square root of the number of future facilities divided by number

of existing facilities”.

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Example Example

N1 = Number of existing facilitiesN2 = Number of future facilitiesX1 = Total inventory in existing facilityX2 = Total inventory in future facility

A company presently distributing 40,000 units of product to its customer from eight facility location throughout India is located at A, B, C, D, E, F, G and H. The company is evaluating an opportunity to consolidate its operation into two facilities. Square Root Law we will find the total amount of inventory in the two future facility.Where

Here,X1 = 40,000N1 = 8N2 = 2

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3 main agencies in India.3 main agencies in India.

• There are three agencies in the public sector which are engaged in building large scale storage/warehousing capacity namely, Food Corporation of India(FCI) Central warehousing Corporation (CWC) and 17 State Warehousing Corporation (SWCs). Over a period of time, sizeable scientific storage/warehousing capacity has been developed by these public sector agencies and they are implementing plans to increase it further. While the capacity available with FCI is used mainly for storage of food grains as also certain other notified items.

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LICENSING OF WAREHOUSE IN INDIA

• suitable for proper storage of the class of goods intended to be stored.• The applicant must be competent to conduct such a warehouse.• fulfill any other conditions that the state government may notify from

time to time.• pay the fees prescribed for the issue of a license and also furnish

security.• Under the state warehouses acts, a warehouseman takes such care of

the goods stored with him as a man of normal prudence would take of his own goods.

• warehouseman must keep his warehouse clean and in a hygienic condition, and take all the necessary precautions against rats, pests, etc.

• compulsorily insured against damage by fire, floods, theft or any other accident.

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CONCLUSION

• The entire area of facilities development that is size and number of warehouses, location analysis, warehouse layout and design is an important factor yet complex, part of warehouse management. In recent years, computers have played a more significant role as logistics executives attempt to optimize warehouse operations

THANKS

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