Warehousing Including Warehousing Decision in Detail and Distribution
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Transcript of Warehousing Including Warehousing Decision in Detail and Distribution
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Warehousing including warehousing decisionin detail and distribution centers
Nimisha.M.N
MBA.FT
Roll no.23
s3
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Introduction Definition of warehouse Functions of warehouse
Basic warehouse decisions Distribution centers Conclusion References
CONTENTS
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A process of transforming data into informationand making it available to users in a timelyenough manner to make a difference
Technique for assembling and managing data
from various sources for the purpose ofanswering business questions. Thus makingdecisions that were not previous possible
A decision support database maintained
separately from the organizations operationaldatabase
INTRODUCTION
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Definition of Data Warehouse?
A single, complete and consistentstore of data obtained from avariety of different sources made
available to end users in a whatthey can understand and use in abusiness context
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Data is historical or point-in-time.
Optimized for inquiry rather than update.
Used to manage and control business.
Use of the system is loosely defined and can bead-hoc.
Used by managers and end-users to understand
the business and make judgments.
Decision Support
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Warehouse :
Accountable amount of inventory
Basic functions are movement storage
It saves time
Nature and Importance
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More modern term.
Emphasize flow and movement.
Stresses rapidity of product movement.
More accurately characterizes todays
logistic environment.
Distribution centers:
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Consolidation Product mixing Service/Product availability
Protection Against Contingencies Smoothing Manufacturing Operations
Basic function
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Ownership Public versus contract versus private
Centralized or Decentralized Warehousing How many Location Size Layout What products where
Basic Warehouse Decisions-Cost Trade-off Framework
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Basic Warehousing Decisions
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The Ownership Decision
Public warehousingcosts mostly allvariable.
Privatewarehousing costshave a higher fixedcost component.
Thus privatewarehousingvirtually requires a
high and constantvolume
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Factors to consider Throughput volume
Stability of demand
Density of market area to be served
Security and control needs
Customer service needs
Multiple use needs of the firm
The Ownership Decision
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Rationale for Public Warehousing Limited capital investment
Flexibility
Public Warehousing Services Bonded warehousing
Field warehouses
Public Warehousing
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Public warehousing regulation: Liability
Receipts Public warehousing rates based upon:
Value Fragility
Potential damage to other goods
Volume and regularity
Weight density
Services required
Public Warehousing
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Communication problem In effective communication Lack of standardization in conceptual
agreement
Availability of specialized services Space availability
Disadvantages of Publicwarehousing
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Allows firms to integrate warehousefunction more easily
Highly flexible
Less cost Organizations can make greater use of its
Human Resources.Tax benefits
Advantages of Privatewarehousing
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It results in
Too costly because of its fixed size and fixedcostLoss of valuable business opportunityLoss of customer service
Loss of salesLoss of flexibility in its strategic location
options
Disadvantages of Privatewarehousing
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Partnership arrangement between user andprovider of warehouse service
Defined as
Long termMutually beneficial arrangementProvides unique and logistics servicesVendor and client shares the risk associated
with operation
Contract warehousing
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Factor centralized decentralized
Sustainability Low High
Product value High Low
Purchase size Large Small
Special warehousing Yes No
Product line Diverse Limited
Customer services Low High
Factors Affecting the Numberof Warehouses
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A distribution center for a set of isproducts a warehouse or otherspecialized building, oftenwith refrigeration or air conditioning, which
is stocked with products (goods) to beredistributed to retailers, to wholesalers, ordirectly to consumers. A distribution centeris a principal part, the order processing
element, of the entire orderfulfillment process.
Distribution center
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A warehouse is designed to accommodatelong-term storage, whereas a distributioncenter is set up to distribute supplies:product comes in and within a week or so,
the majority of it is shipped out (to stores,for instance). It's constantly moving throughthe building--it is received, used to fillorders and shipped out as new product is
arriving.
Differences between warehouse anddistribution center
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Distribution centers are
The foundation of a supply network, as theyallow a single location to stock a vast numberof products
A typical retail distribution network operateswith centers set up throughout a commercialmarket, with each center serving a number ofstores.
Distribution centers are usually thought of asbeing demand driven. A distribution centercan also be called a warehouse, a DC, afulfillment center, a cross-dock facility, a bulkbreak center, and a package handling center.
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A warehouse is a commercial building forstorage of goods. Warehouses are usedby manufacturers,importers, exporters, wholesalers, transport businesses and customs.
Sometimes warehouses are designed for theloading and unloading of goods directlyfrom railways, airports, or seaports.
Conclusion
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Sunil chopra,Peter Meindl,Supply chainmanagement,2002, 3rd edition
EI,Schragenheim,H.william Dettmer,J.WaynePaterson,Supply chain management at
Wrapspeed,2009,1st edition Donald Waters,Logistics-An introduction to supply
chain management,2004,2nd editionJoohn J Coyle,C.John Langely,Brain
J.Gibson,Robert A. Novack,Edward J.Bardi,Alogistic approach to supply chainmanagement,2009,5th edition
REFERENCES
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