Warehousing

Question 1

Warehouse

Answer 1

Is a place where inventory is stored.

Question 2

Consideration in warehousing

Answer 2

Utilizing the storage space to the maximum
Higher productivity of labor
Reduced material handling o Reduced order filling time
Maximum utilization of assets
Reduced operating cost

Question 3

Functions within the warehouse:

Answer 3

1. Receiving
2. Pre-packing
3. Storage
4. Order picking
5. Packaging and/or pricing
6. Sortation
7. Packing and shipping
8. Traffic management

Question 4

1. Receiving

Answer 4

Collection of activities involved in proper receipt of all materials coming into the warehouse, providing the assurance that the quantity as well as quality is as per ordered, and distributing the materials to storage or to the other organizational functions which require them.

Question 5

2. Pre-packing

Answer 5

This is done in the case when products are received in bulk from a supplier and repacked into single consignments. The entire merchandise, which is received, may be processed at once, or a portion may be held in bulk for processing later.

Question 6

3. Storage

Answer 6

Putting away the inventory received to complement order picking. It can be explained as the physical holding of merchandise while it awaits demand. Method of storage depends on the size and the quantity of the items in inventory and the handling characteristics of the product or its container.

Question 7

4. Order picking

Answer 7

Physical selection of the products from their locations after receiving the customer orders. In other words, process by which items are removed from storage in order to cater to a specific demand. A document named Pick List containing details like sales order number, shipment details, item details, quantity etc facilitates order picking.

Question 8

5. Packaging and/or pricing

Answer 8

This is basically optional which may be done after the picking process.

Question 9

6. Sortation and / or accumulation

Answer 9

When a warehouse stores multiple products, this activity is done.

Question 10

7. Packing and shipping

Answer 10

Performance of tasks related to dispatching an order. This includes the following tasks like checking whether order is complete or not, packing material in an appropriate shipping container, preparation of shipping documents, including packing list, address label, and the bill of lading, weighing the shipments to determine shipping charges, accumulate orders by outbound carrier, loading trucks etc.

Question 11

8. Traffic management

Answer 11

Choosing the best mode of transportation for inflow and outflow.

Question 12

Types of warehouse

Answer 12

1. Private warehouse
2. Public warehouse
3. Contract warehouse

Question 13

1. Private warehouse

Answer 13

Refers to having the entire facility under the financial and administrative control of the firm, i.e. the firm owns the product and also operates the warehouse. The actual facility can be either owned or can be taken on lease, for a short period.

Question 14

2. Public warehouse

Answer 14

These are similar to private carriers in transportation service. Services are provided to others by firms that have warehousing space, storage facility, and material handling equipment for their own use and are used a lot in logistical systems. These are designed to handle the most general packaged products or commodities, which would not require specialized storage or handling arrangement. The products usually stored are food grains, paper rolls, bulk material (cement, fertilizers), furniture, chemicals etc.

Question 15

3. Contract warehouse

Answer 15

Combine features of both public and private warehouses. The risk is shared and there is a long – term relationship that will result in lower costs. Benefits include economies of scale, flexibility, information, and equipment sharing among clients.

Question 16

Warehouse Management Systems

Answer 16

This is a software solution to control movement and storage of materials within a warehouse, transportation management, order management, and a complete accounting system.

Question 17

Activities managed through a WMS:

Answer 17

1. Inbound
2. Inventory Management
3. Outbound

Question 18

1. Inbound

Answer 18

Functions like addition of a new purchase order, palletization, receipt of goods, putting away received goods etc.

Question 19

2. Inventory Management

Answer 19

Transferring inventory, holding and adjusting inventory, awareness of inventory balances etc

Question 20

3. Outbound

Answer 20

Tasks such as creating an order of shipment, shipping multiple orders, allocation of orders, shipping order status etc.

Question 21

Generalization

Answer 21

Warehouse being the interface area for production, market, customers and suppliers performs a number of functions in the supply chain. In many logistical system designs, the role of warehouse is viewed as a switching facility when contrasted to a storage facility. While the role of a traditional warehouse was to maintain a supply of goods to protect any uncertainty, the contemporary warehousing offers a host of much other value – added services. Effective warehousing has become the order of the day.