...Warehouse by Ed Acker Steven Winter Associates, Inc. Last updated: 04-23-2008 Overview Warehouses, defined here, are facilities that provide a proper environment for the purpose of storing goods and materials that require protection from the elements. Warehouses must be designed to accommodate the loads of the materials to be stored, the associated handling equipment, the receiving and shipping operations and associated trucking, and the needs of the operating personnel. The design of the warehouse space should be planned to best accommodate business service requirements and the products to be stored/handled. The economics of modern commercial warehouses dictate that goods are processed in minimal turnaround time. The different types of warehouses include: * Heated and unheated general warehouses—provide space for bulk, rack, and bin storage, aisle space, receiving and shipping space, packing and crating space, and office and toilet space; * Refrigerated warehouses—preserve the quality of perishable goods and general supply materials that require refrigeration. Includes freeze and chill space, processing facilities, and mechanical areas; and * Controlled humidity (CH) warehouses—similar to general warehouses except that they are constructed with vapor barriers and contain humidity control equipment to maintain humidity at desired levels. Special-designed warehouses meeting strict requirements can also provide liquid storage (fuel and nonpropellants), flammable...
Words: 2566 - Pages: 11
...C. Capacity planning. Capacity planning is critical for an organization because it can affect an organization’s decisions on inventory as well as forecasting and thereby influence customers’ satisfaction. What’s more, Capacity planning involves long-term commitment of resources so that once implemented it is difficult or impossible to make any changes considering the major costs. In the case of Wegmans Food Markets, the capacity means the upper limit on the load that this market can sell during a certain period. Since Wegmans Food Market prides itself on fresh produce, predicting the capacity inaccurately such as overestimating the capacity will lead to a high volume of inventory. Some food such as eggs, milk and meat cannot be stored for a long while. If the market fails to sell out all of the food it purchased, it will afford high costs, reducing the competitiveness of the market. On the other hand, if Wegmans Food Markets underestimates its capacity, stock out will happen. Customers cannot find out what they want and as a result, they will seek another supermarket. Losing existing customers or a low customer satisfaction, both of them will cause a bad influence on an organization. Reference: Textbook, Chapter 5 e. Inventory management Although inventory can meet anticipated customer demand and smooth production requirements, inventory is a liability to an organization considering the decrease in value as well as the costs of carrying inventories. Therefore, every...
Words: 353 - Pages: 2
...Introduction System Introduction For optimal sales and inventory management processes, you need robust functionality for managing your logistics facilities. Support for inventory management helps you record and track materials on the basis of both quantity and value. Warehouse inventory management functions cover internal warehouse movements and storage. Using this software we can reduce costs for warehousing, transportation, order fulfillment, and material handling – while improving customer service. You can significantly improve inventory turns, optimize the flow of goods, and shorten routes within your warehouse or distribution center. Additional benefits of inventory management include improved cash flow, visibility, and decision making. This software is user friendly and hence easy to use. Employees can plan, enter, and document warehouse and internal stock movements by managing goods receipts, goods issues, storage, picking and packing, physical stock transfers, and transfer postings. Problems In existing system As we know manual system are quite tedious ,time consuming and less efficient and accurate in comparison to the computerized system. So following are some disadvantages of the old system: 1. Time consuming 2. Less accurate 3. Less efficient 4. Lot of paper work 5. Slow data processing 6. Not user friendly environment 7. Difficult to keep old records Scope of Proposed...
Words: 708 - Pages: 3
...Inventory Management System for small business Jim Shrestha Washington Adventist University, Takoma Park, Silver Spring, MD Abstract In this paper, I tried to illustrate the importance of inventory management system for small business. The term small business denotes to all those business which is family or person owned and donot have maximum revenue. This paper explains the idea, how to set up new inventory management system with minimal budget. As my paper focuses more on small business, I explain very common and effortless way of setting up new inventory management system. Most of the informations are extracted from different inventory management supplier’s official websites. With these information and some visual figures, I anticipate everyone can understand how setting up new inventory management system in their business can be more economical and time saving. Inventory Management System Inventory management system is the key term to the modern business era. Without a proper inventory management tools, a business cannot perform in it’s fullest. Simply it is the automated management method of business inventory where every purchase and sale are listed in an organised fashion. The systems ensure customers always have enough of what they want and balance that goal against a retailer's financial need to maintain as little stock as possible. Because mismanaged inventory leads to disappointed customers. That’s why this inventory management system has become...
Words: 988 - Pages: 4
...SKU_Description LIKE '__d%'; 2.36 Write an SQL statement to display the WarehouseID and the sum of QuantityOnHand, grouped by WarehouseID. Name the sum TotalItemsOnHand and display the results in descending order of TotalItemsOnHand. SELECT WarehouseID, SUM(QuantityOnHand) AS TotalItemsOnHand FROM INVENTORY GROUP BY WarehouseID ORDER BY SUM (QuantityOnHand) DESC; 2.42 Write an SQL statement to display the SKU, SKU_Description, WarehouseID, Ware- houseCity, and WarehouseState of all items not stored in the Atlanta, Bangor, or Chicago warehouse. Do not use the NOT IN keyword. SELECT SKU, SKU_Description, INVENTORY.WarehouseID FROM INVENTORY, WAREHOUSE WHERE INVENTORY.WarehouseID=WAREHOUSE.WarehouseID AND WarehouseCity Except ('Atlanta','Bangor','Chicago'); 2.44 Write an SQL statement to produce a single column called ItemLocation that com- bines the SKU_Description, the phrase “is in a warehouse in”, and WarehouseCity. Do not be...
Words: 349 - Pages: 2
...Proposal for Inventory Management and Point of Sale Systems (Public) Table of Contents Table of Contents Introduction Details of the Plan Example Situation Finding a Solution What are the requirements? Inventory Management One Solution Cost Other Requirements Narrowing Down a Solution Solutions Researched Proposed Solution Other features & thoughts: Pricing Summary Introduction As you read this proposal, please consider the women at Haitian Creations. The goal is to empower them with knowledge and to share the good news with these ladies: “My name is Joseph and I am 23 years old. I have 2 children who are 6 and 3 years old. I was living on the streets. Now, I am able to live in a home. I have worked at Haitian Creations for one year. This program allows me to pay for my children's education. I am very thankful for Heartline giving me the opportunity to learn and work. One day I would like to study and be a nurse.” - Joseph Wideleine “My name is Nehimie and I am 27 years old. It is difficult to find work and I am very excited to be able to learn and make purses. This is my first job and I have worked at Heartline for one year. I enjoy making purses and other products with my hands. One day I would like to be a clothing fashion designer.” - Nehimie Ulysse Can we help more women like this? These are women that are working hard to bring themselves out of the oppressed lifestyle they are all too familiar with from before. When I visit the program I see them studying, writing...
Words: 2798 - Pages: 12
...Introduction Sysco is a global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and any other customer who prepares meals away from home. Sysco currently has more than 180 locations throughout the United States, Canada and Ireland with about 400,000 customers making up their portfolio. Sysco offers a wide variety of products which range from ingredients in menu items, as well as, both preparation and serving items. From Sysco’s initial public offering (IPO) in 1970, their sales have grown from $115 million to $37 billion for the fiscal year 2010. Sysco Grand Rapids is one of the numerous Midwest offices that supply to Michigan, Ohio and Indiana. Some of their major customers in Grand Rapids are Bigby Coffee and Jimmy Johns, including many others, which Sysco has national contracts with. Sysco currently holds about 17 percent of the food service market share, which is a $200 billion industry. Some of Sysco’s major competitors that make up the rest of the market share include Gordon Food Service (GFS) and U.S. Foods, which is Sysco’s largest competitor nationwide. Sysco Grand Rapids sees the competition a little differently locally than the company does as a whole, with GFS being their largest competitor. The reason GFS is the largest competitor in Grand Rapids is because they do not serve the entire nation, rather they are more prevalent in the Midwest states. ...
Words: 2501 - Pages: 11
...important for any business, because without enough stock, production and sales will grind to a halt. Stock control involves careful planning to ensure that the business has sufficient stock of the right quantity available at the right time. Internal control is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations. The internal control system provides for safeguarding of assets and proper recording of transactions. This research is done about the inventory internal control system in Burger King outlets located in Portmore. Companies should store inventory in secure spacious warehouses so that inventory is not stolen or damaged. Goods and resources of similar type should be kept in the same general area of the warehouse to minimize confusion and to ensure accurate counts. In an aid to control stock most companies use physical inventory counts which are a way of ensuring that a company's inventory management system is accurate and as a check to make sure goods are not being lost or stolen or cycle counts which is conducted periodically throughout an accounting period as a means to ensure that the information in its inventory management system is correct. A company's investment in inventory is usually a large one, and it may be comprised of a large number of merchandise items that can be readily stolen and resold. If the inventory contains mostly raw materials, then keeping track...
Words: 694 - Pages: 3
...Memorandum To: Cynthia Crowninsheild From: Date: 2/22/2014 Re: Production Analysis SHUZWORLD A. Distribution Pattern Shuzworld has three plants that ship units to three central warehouses. The company would like to know the lowest transportation cost monthly along with the best shipping plan to achieve the lowest cost. To analyze the cost we are using the transportation modeling tool. The optimal cost is $13,400 which would be the lowest monthly transportation costs which is shown below. Transportation modeling is the best tool to use as it finds the lowest optimal costs when shipping products from several plants to several different destinations. Our model shows three different plants of Shanghai, Shuzworld H, and Shuzworld F with three different warehouses. The individual unit costs to ship from each plant to each warehouse is entered in order to calculate the optimal cost. Also shown below is a shipping list whish details the exact amounts that should be shipped from each plant to each warehouse in order to achieve the optimal costs shown. This would be the best distribution pattern to use in order to achieve the optimal costs. The patterns show any demand constraints and also meets availability while minimizing total shipping costs. Looking at the shipping list chart the increased production from 1300 to 2800 units caused the supply to exceed the demand which is shown in the Dummy row ( dummy destination at no cost) that way the cost...
Words: 331 - Pages: 2
...before each number. SET A ___1. A means of transportation which is considered as less costly. ___2.A widely used inventory control technique. ___3. A special transport agency which fit the requirement for speed and reliability. ___4. This refers to receiving, recording, filling, and assembling orders for shipment. ___5. An inventory which may mean lost sales. ___6. A type of warehouse which are owned or leased by the company. ___7. This form of transportation constitutes the fastest means of delivering goods. ___8. This refers to the activities involved in moving goods over short distances into, within, and out of warehouses and manufacturing plants. ___9. A component of the order cycle that refers to the time the customer develops the order until the order is received by the seller. ___10. A form of transportation which provides a very important means of transportation especially in an archipelago like the Philippines. ___11. This cycle consists of order placement, internal order processing, order preparation, and order shipment. ___12.A type of warehouse that are operated by professional warehousers. ___13. Component of the order cycle that refers to all activities relating to the picking and packaging of individual customer orders. ___14. A special transport agency involved in the economical distribution of...
Words: 526 - Pages: 3
...Assignment 5 BUS371 [Page 51] 1. To make the recommendations, it is first necessary to understand the product that Otis Trains is selling. It is selling high quality, detailed, small batch train sets that are targeted towards affluent makes in the 30 to 50 ages bracket. For this market, we can assess the Order Winners, Order Qualifies, and Order Losers. Quality | Order Winners | Price | Order Qualifies | Lead time (to delivery) | Order Winners/ Order losers (if too long) | Availability | Order Qualifies | Variety | Order Winners | From this analysis, it is evident that price, while important, is not critical. While important, it is not consistent with the requirements of the customer. More importantly, we must consider that the supplier, being located in China, exposes Otis to a number of critical potential problems such as long lead times and increased costs due to transportation and increased inventory Therefore, the decision doesn’t make a lot of sense. So I recommend that you would have a supplier that could work closely with you and that would offer you short delivery lead times and high quality. 2. Because of the need for high quality products that are frequently updated to reflect new types of trains, the most appropriate relationship is a close collaborative relationship. Such a relationship is important because you want to work closely with the supplier to ensure that new products are designed and introduced quickly and with the appropriate levels...
Words: 646 - Pages: 3
...Inventory is handled by a system of four warehouses, one central warehouse and three regional warehouses. The company stockpiles on purpose to ensure that the workforce has a stable income. On an annual basis, however, the output matches demand. There has been an increased amount of complaints from regional sales managers about poor customer service. Customers’ orders go unfilled or are late, due to shortages at the regional warehouse which is causing the company to lose sales. The regional warehouse managers began to increase their order sized from the main warehouse in order to maintain larger amounts of safety stock. This has increased inventory holding costs, and not solved the problem of stock-outs. On the other hand the main warehouse feels that their policy is to give preference to filing orders from “actual” customers and not to the regional warehouses. It is evident that the regional warehouses also supply to customers on a regional basis. This inventory issue is costing the company in lost orders and being stuck with stock holding costs. Problems: 1. The president’s stance on steady output conflicts with seasonal demand. 2. Having a single, centralized warehouse is lowering the need for safety stock due to random variability in orders from the various regions. 3. Having separate regional warehouses requires each warehouse to have a relatively larger safety stock to guard against variations in demand. 4. The regional warehouse has increased their order size but...
Words: 543 - Pages: 3
...Problem 1 (a) Why is the receiving staff in a typical warehouse much smaller than the staff of order-pickers? The receiving staff in a typical warehouse is much smaller than the staff of order pickers because restockers move larger quantities of SKUs, so a few receivers can keep many pickers supplied. A rule of thumb is that there should be one receiver for every five order pickers. Receivers usually handle products in larger units and order pickers handle products in smaller units. Order picking is significantly more labor intensive and resistant to automation. (b) Explain the difference between popularity and demand. Demand is considered the forecasted frequency of SKUs and popularity are the A items that have a high frequency and are picked and packaged often. For example, a Christmas related SKU will have a high demand during the holiday season but is certainly not popular other seasons. (c) What is “batch picking” ? Give a pro and a con of batch picking. Batch picking is when each worker retrieves many orders in one trip. An advantage of batch picking is that it is a way to increase the pick density. However, a disadvantage is that it requires that the items be sorted into orders while picking or somewhere else downstream. If they are sorted into orders during picking, pickers are slowed down because they must carry a container for each order and they must sort the items as they pick, which leads to time being wasted and can result in errors. If the...
Words: 938 - Pages: 4
...processing needed reports? 3. How can our system guarantee the safety of the information stored? 4. How can our system reduce servile works for the staff involved in the type of field of work? Objectives of the Study This study tries to improve, introduce, and develop the use of inventory system for the ASIA GOLD CORPORATION. The system reduces work for the staff can make inputting of data at easier and faster generating outputs. Specifically this study aid to: 1. To provide inventory system for ASIAGOLD CORPORATION. 2. Lessen the work and provide the staff involved in the field of work with newer tactics in storing the information safety. 3. Implement our proposed system. Scope and Delimitation This study was conducted at the warehouse of ASIAGOLD CORPORATION. This study focuses on...
Words: 321 - Pages: 2
...during the first five months of 2004 with performance in 2003, which warehouse shows the most improvement? St. Louis is the only one showing any improvement, using cost per unit shipped as the performance criterion. The cost for the first five months of 2003 was $9.97 and for the first five months of 2004, it fell to $9.07. Question 2: When comparing performance during the first five months of 2004 with performance in 2003, which warehouse shows the poorest change in performance? The worst change is the company’s own warehouse (located in Fargo), where costs per unit shipped increased 31%. Among the public warehouses used, Denver was the worst in terms of cost per unit handled. It is also the most expensive public warehouse that Brant uses. Question 3: When comparisons are made among all eight warehouses, which one do you think does the best job for the Brant Company? What criteria did you use? Why? Using the cost per unit handled criterion, St. Louis does the best job, closely followed by Chicago. Question 4: J.Q. is aggressive and is going to recommend that his father cancel the contract with one of the warehouses and give that business to a competing warehouse in the same city. J.Q. feels that when word of this gets around, the other warehouses they use will “shape up.” Which of the seven should J.Q. recommend be dropped? Why? Denver has the lowest volume and highest unit costs among all the public warehouses used. In addition, it had been closed by a strike which must have...
Words: 1098 - Pages: 5
