Logistics Important topics to remember (Chapter 7 – Warehousing)

Chapter 7:- Warehousing

Benefits of Warehouse:

Economic and Service benefits:-

2) Break-bulk

These are similar to consolidation except that no storage is performed.

a)      Break Bulk warehouse are facilities that receives large shipment of products from manufacturer.

b)     After receiving the large consignment it is broken into small consignment which are delivered to the customer.

c)      A break bulk warehouse or terminal distributes or divides orders and arrange for local delivery.

3) Cross-dock

Cross-Dock facility is similar to break bulk expect that it involves multiple manufactures. It serves primarily as a “distribution mixing center”.

4)     Processing/ Postponement

5)     Stockpiling

Types of Warehouse

1)    Private warehouses

2)    Public warehouses

3)    Contract warehouse

Distinguish between Public warehouse V/S Private warehouse

Square Root Law

Where,

N1= Number of existing facilities.

N2= Number of future facilities.

X1= Total inventory in existing facilities.

X2= Total inventory in future facilities.

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