WAREHOUSINGSTOCK VERIFICATION

JITSTORES

MANAGEMENT

Warehouse Management

A warehouse is typically viewed as a place to store inventory.

BENEFITS OF WAREHOUSING:-Consolidation Shipment consolidation is an economic benefit

of warehousing.

With this arrangement, the consolidating warehouse receives and consolidates materials from a number of manufacturing plants destined to a specific customer on a single transportation shipment.

Break bulk warehousesA break bulk operation receives combined

customer orders from manufacturers and ships them to individual customers.

The break bulk warehouse sorts or splits individual orders and arranges for local delivery.

Because the long-distance transportation movement is a large shipment, transport costs are lower and there is less difficulty in tracking.

Service BenefitsThree basic service benefits are achieved

through warehousing:

spot stock,

assortment,

mixing,

SITE SELECTION:-1}Beyond procurement cost, setup and

operating expenses such as rail sidings, utility expenses, taxes, insurance rates, and highway access require evaluation.

These expenses vary between sites.

2}Adequate water supplies

3} The location must offer adequate room for expansion.

Storage PlanProduct volume is the major concern

when defining a warehouse storage plan.High-volume sales or throughput product

should be stored in a location that minimizes the distance it is moved, such as near primary aisles and in low storage racks.

Such a location minimizes travel distance and the need for extended lifting.

Conversely, low-volume product can be assigned locations that are distant from primary aisles or higher up in storage racks.

STOCK VERIFICATIONStock verification refers to the process of

physically checking the quantities of different items of material available in stock in a store or warehouse and tallying these physically available quantities with the quantities shown in stores stock records.

Stock verification is done not only for spare parts, but for all types of material that may be stocked.

types of stock verification systems Periodic stock verification :

In this systems the verification is done at fixed periodical intervals. many companies do their stock verification just before the year end so that the annual accounts of the company will reflect the correct stocks.

Perpetual stock Verification: In this system the stock of every item is

verified every time there is an issue or receipt transaction for the item.

This means a much stricter control over physical stock. But this also involves more work.

 Steps in Setting Up an effective stock verification system

1. To appoint technical expert personalities for this work, who have knowledge the measurement system of material of stock. For example, method of measuring cable will be different to measuring milk.

2. Direction of surprise checking should be given by heads.

Results of Stock Verification

1. Pilferage2. natural losses3. loss stock due to changing in temperature4. errors in counting5. loss due to careless handling and careless measurement6. Any other losses may be the nature of unavoidable or avoidable

JUST IN TIME:-It is the system that seeks to eliminate

all sources of waste in production activities by providing the right path at right place at right time.

. Just-in-time production method is also called the Toyota Production System.

JITWhat Does Just In Time - JIT Mean?

An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.

Main benefits of JIT include:

Reduced setup time. Cutting setup time allows the company to reduce or eliminate inventory for "changeover" time.

The flow of goods from warehouse to shelves improves

CONCEPTS OF JIT:-ELIMINATION OF WASTE:-

Anything that does not add value is called as a “waste”.

Defective products do not add value to anything and hence are 100% waste.

PULL v/s PUSH SYSTEMJIT is that of a pull system. Material is

produced or supplied only when requested and moved to where it is needed .

Problems become visible and continuous improvement.

Push system is a system that pushes material into downstream workstations regardless of their time or availability of resources to perform work.