1. Storage (Location) Warehousing Balancing act

2. Warehousing • An act of storing and assorting the finished goods so as to create maximum time utility at minimum cost • Sub function – Storage, movement, assorting, hold, consolidation, break bulk, packing,

3. Advantage of Warehousing • Serves as safeguard • Make provision for unloading • Serves economically at lower prices • Helps in determining the channel of distribution • Assist in maintaining continuous sales • Balancing demand & supply • Stabilizing prices • Reduces need for instant transportation

4. Warehouse Warehouse Operations • Receive and Inspect Goods • Identify Goods • Sort and Dispatch Goods to Storage • Hold Goods • Recall, Select, or Pick Goods • Organize the Shipment • Dispatch the Shipment • Prepare Inventory Records

5. Types of warehouses • A. On the basis of place of necessity Inplant warehousing Field warehousing Bonded warehouses – located near ports • A. On the basis of ownership Private Public Contract

6. Types of warehouses • Special warehouses General merchandise warehouses Special commodity warehouses – require special treatment Refrigerated Yard & ground storage

7. Types of warehouses • On the basis of operation Centralised Decentralised

8. Warehouse site selection factor • Infrastructure • Market • Access • Primary transportation cost • Availability • Product • Regulation • Local charges

9. Transportation • The movement of products from where they are made to where they are used • Involves loading & unloading of productd • Confers time & place utility

10. Rail Water Air Pipeline Modes of Transportation Motor

11. Modes of Transportation • Rail Merits • mass movement of goods • Faster than road transport • Convenient for long distance • low unit cost • Suitable in carrying heavy goods • Operation less affected by adverse condition Demerits • Lesser accessibility • Relatively expensive for short distance • Inflexibility • Not suitable for local transport • Involves heavy losses of life in case of accident

12. Roadways • Merits • point-to-point service • flexible • Safety • Cheapness • Perishable goods at faster speed for short distance • Demerits • Flexible • Irregularities • Limited carrying capacity • Heavy goods in bulk involves high cost • Slow speed • Affected by adverse weather condition

13. Modes of Transportation (Cont’d) • Water • Merits • lowest costs, for bulky goods • large capabilities • mass movement of bulk commodities • International trade • Cost of maintaining & constructing routes is low, naturally made • Safe mode with respect to occurrence of accidents • Demerits • Low speed • Seasonal • Not suitable for perishable goods • Affected by weather conditions

14. Airways • Merits • fastest for long distances • broad service range • Useful in non accessible area • Most convenient during calamities • Demerits • High cost • Limited product • Not suitable for heavy & short distance • Heavy losses in case of accidents • Affected by adverse weather condition

15. Pipeline Modes of Transportation (Cont’d) • Pipeline • Merits • mass movement of liquids and gasses • Economical • Un-interrupted service • No damage • Underground • lowest operating cost and unit costs • Demerits • Initial heavy investment • Danger of enemy attacks

16. Combination Of Modes • Piggy - back • Fishy - back • Air - Truck • Roll on – Roll off

17. Transportation modes for various products

18. Comparison of various modes

19. Importance of transportation • Confers time & place utility on products • Where production location & markets are distanced transpn helps • Help to build clientele • Widening the markets • Increase in mobility of labor & capital • Stabilization of prices • Service to customer & rise in std. of living • Facilitates production

20. Main Task In Transportation • Assessment of the transportation • Choosing the mix of transport modes • Deciding the routing • Development of operational plan • Implementation • Control of transportation cost

21. Managerial Aspect of Transportation • Deciding mode of transportation • Cost • Speed • Handling damages • Regularity • Flexibility

22. Factor Affecting Transport Choice • Product • Packaging • Distance • Monetary resource availability • Urgency • Lead time

23. Choice Of Transportation Modes • Speed • Dependability • Availability • Costs

24. Inventory • Refers to a stock of goods or other economic resources that are held by firms at a particular time for future production requirements & meeting demands • Inventory can be direct or indirect – Direct includes goods in manufacturing of product & become part of finished goods. Ex. Raw material, WIP goods, finished goods • Indirect include goods that are necessary to run production process not part of end product. Ex. Lubricants, oil, grease, stationary

25. Objectives Of Inventory • To improve customer service • To reduce investment in inventories • To increase productivity • To optimize space required for inventory • To rationalize material movements • To reduce losses due to obsolescence, deterioration