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Warehouse objectives and Planning (Warehouse objectives (considerations…
Warehouse objectives and Planning
Warehouse objectives
Respond rapidly to changes in the market or customer orders
Minimize variances in logistics service
Minimize inventory to reduce costs
Consolidate product movement by grouping shippings
Maintain high quality and engage in continuous improvement
support the entire product life cycle and reverse logistics
considerations
Determine mix of private, public, or contract warehouse
Determine the optimum number of facilities necessary to aid in reduction of inventory while reducing or eliminating stockouts
Selecting the right location for each warehouse to ensure cost-efficient access to supply, markets, and transportation
Designing each facility to be the right size and configuration for its products and process
Developing management systems that employ space, labor, equipment, and information technology to minimize delays, product damage, and loss
Own versus lease
Private warehouse
Control
No markup
Market presence
Public warehouse
Flexibility
Potential cost reduction
Contract warehousing
Potential cost reductions
Tailored services
Flexibility
Expanded geographic market
Mixing ownership types
Determining the right number of warehouse
Customer service
Transportation costs
Inventory
Setup and overhead costs
Determining the right locations for warehouses
Available services
Neighborhood
Costs
Community inducements
Regulatory concerns
Organization of storage locations
Warehouse layout
Stock location
Using random -location storage
Using fixed-location storage
Using ABC classification
Grouping functionally related item together
Grouping high-velocity item together
Grouping items by similar physical characteristics
Grouping reserve stock separately
Warehouse capacity forecasting and planning
Considerations before calculating forecasted inventory
Averages must first be calculated for each type of unit
Some average warehouse space requirements may need to be calculated
Some compensation is often added for pallets that are used for individual items rather than shipped as whole pallet
Any bulk storage capacity requirements would be calculated seperately
Determine the raw space footprint
Factor in space for all inventory movement
Account for vertical space utilization
Add space for expansion or excess capacity