1、Warehousing managementPrivate Warehouse A private warehouse is operated by the firm owning the product. The actual facility, however, may be owned or leased. Often it is not possible to find a warehouse for lease that fits the exact requirements of a firm. The benefits of Private Warehouse The major
2、 benefits of private warehousing include control, flexibility, cost, and other intangible benefits. (1)Private warehouses provide more control since the enterprise has absolute decision-making authority over all activities and priorities in the facility. Drawbacks of private warehouse (1)When manage
3、ment performance is judged according to return on investment (ROI), the use of private warehousing needs high and steady demand volumes (2) high fixed costPublic Warehouse On the basis of the range of specialized operations performed, public warehouses are classified as (1) general merchandise wareh
4、ouse, (2) refrigerated warehouse, (3) special commodity warehouse, (4) bonded warehouse, and (5) household goods and furniture warehouse . Public Warehouse General merchandise warehouse is designed to handIe general package commodities such as paper,metal material, and mechanical and electrical prod
5、ucts. Refrigerated warehouse (either frozen or chilled) handles and maintains food, medical items, and chemical products with special temperature requirements. Special commodity warehouse is designed to handle bulk material or items with special handling considerations, such as tires or clothing.Pub
6、lic Warehouse Bonded warehouse is licensed by the government to store goods prior to payment of taxes or duties. Finally, a household goods or furniture warehouse is designed to handle and store large, bulky items such as appliances and furniture. The benefits of Public Warehouse (1)From a financial
7、 perspective, public warehousing may have a lower variable cost than comparable privately operated facilities. (2)When management performance is judged according to return on investment (ROI), the use of public warehousing can substantially increase enterprise return. (3)Public warehousing offers fl
8、exibility in that it is easy to change the location, size, and number of facilities, allowing a firm to quickly respond to supplier, customer, and seasonal demands. Contract Warehouse Contract warehousing combines the best characteristics of both private and public operations. (1)Contract warehouse
9、operations can provide benefits of expertise, flexibility, and economies of scale by sharing management, labor, equipment, and information resources across a number of clients. Contract Warehouse (2)Contract warehouse operators are also expanding the scope of their services to include other logistic
10、s activities such as transportation, inventory control, order processing, customer service, and returns processing. 2 Distribution CenterDC Activities Receiving Put away Storage Order Selection Checking Packing and Marking Staging and Order Consolidation Shipping Replenishment Clerical and Administr
11、ative Receiving: Physically accepting material, unloading that material from inbound transportation mode, verifying quantity and condition of the material and documenting this information as required. Put away: Removing the material from the receiving dock (or other location of receipt), transportin
12、g the material to a storage area, recording this movement, and identifying where the material has been. Storage: The retention of products for future use or shipment. Order Selection: Selecting or picking the required quantity of specific products for movement to a packing area usually in response t
13、o one or more shipping orders and documenting that the material was moved Checking: Verifying and documenting order selection in terms of product number and quantity. In some cases, this activity includes the verification of product condition or quality. Packing and Marking: Packing or unitizing one
14、 or more items of an order into an appropriate container and marking and labeling the container with customer shipping destination data as well as other information that may be required. Staging and Consolidation: Physically moving material, usually on an order by order basis, from the packing area
15、to a staging area based on a particular outbound vehicle or delivery route, often for shipment consolidation purposes. Shipping: Loading an outbound vehicle with material from the staging area and completing the documentation associated with the movement. Replenishment: Relocating material from a bu
16、lk storage area to an order-pick area and documenting this relocation. Clerical and Administrative: Several related activities necessary for the warehouse operations, such as updating inventory files, maintaining labor and equipment records, cycle counting, etc.Warehouse Layout Objectives1.Use space
17、 efficiently2.Allow for the most efficient material handling3.Provide the most economical storageoCost of equipment Built out vs build upoUse of space Space devoted to aisles vs space devoted to storageoDamage to materialoHandling labor Labor-intensive vs mechanization vs automation oOperational eff
18、iciency Picker-to-part vs part-to-picker 4.Provide maximum flexibility, in order to meet changing storage and handling requirements5.Make the warehouse a model of good housekeepingOn a tour, you see thebut you do not see the We try now to show you the Trade-offs Built out vs build up（Cost of equipme
19、nt） Build outlocation where land is expensive Build up a higher warehouse needs special equipment such as high-stacking truck,which generally cost more than the conventional equipment.Trade-offs Labor-intensive vs mechanization vs automation （ Handling labor） Labor-intensivelabor cost continues to i
20、ncrease Mechanization refers to equipment rather than replace manual work Ture automationan absence of human intervention,such as AGVs(automatic guilded vehicles)Trade-offs Space devoted to aisles vs space devoted to storage （ Use of space） Space devoted to aisles reduce the chances of accidents and
21、 product damage,but they increase the travel distances within a facility.Trade-offs Space devoted to storagenarrower aisles can increase the space utilization of a facility but often require special equipment ,such as a narrow-aisle lift truck to do so.Trade-offs Picker-to-part vs part-to-picker （Operational efficiency） Picker-to-part an order picker gets to where a part is located,with forklift or other vehicle. Part-to-picker the parts are brought to the picker with carousels or conveyor.
