StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Warehouse And Inventory Management - Report Example

Cite this document
Summary
The business report "Warehouse And Inventory Management" is created because the company is in the process of growing up, and growing up means expansion, more facilities, more people, responsible people to handle new facilities and warehouses. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.8% of users find it useful
Warehouse And Inventory Management
Read Text Preview

Extract of sample "Warehouse And Inventory Management"

WAREHOUSE AND INVENTORY MANAGEMENT CONTENTS S/No Page Business Report Introduction 2 Study for a Distribution Centre in Australia 2 Centre of Gravity Method Load Distance Technique Scoring Model 2 Warehouse Space & Layout Planning 4 Space Optimization Layout According to Needs Warehouse Efficiency 3 Warehouse Operations Management 5 Microsoft DynamicsTMAX Ideal Warehouse Management 4 Case Study: Use of Information Technology 6 Les Wood Associates Management Consultants Common Faults of Big Companies 5 Modern Methods of Inventory Management 7 6 Conclusion 7 7 References 8 8 Appendices 9 - 14 Grid Map of Australia Excel Calculations for Centre of Gravity Load-Distance Calculations Minilya, Port Hedland, Bundanberg and Gladstone Location Factors WAREHOUSE AND INVENTORY MANAGEMENT Business Report Proper warehousing and good inventory are some of the prerequisites of good business and a firm’s advancement. Before we can go on with answering the needs of our clients and other business partners or customers, we have to see to it that goods are in properly handled, the quality has never faded since the manufacturing stage, and the customers and partners are dealt with like they are special to the company. We are producing this business report because our company is in the process of growing up, and growing up means expansion, more facilities, more people, responsible people to handle new facilities and warehouses. On the outset, here’s the report. 1. A prospective distribution centre in Australia was carefully studied using the following techniques: a. Centre of gravity method Given were customer and supplier locations and annual weights shipped and grid map of Australia. A general geographical area for distribution centre was identified based on the Centre of Gravity principle, taking into consideration socio-economic and other factors. Following was also taken into consideration: Taken and measured from the grid map were the X and Y distances (please see appendices and grid map), for the customer and supplier locations and the four potential distribution centres: Port Hedland, Minilya, Gladstone and Bundaberg. Measured were the grid map coordinates, then calculating the centre of gravity using Microsoft Excel resulted in the different data for the various distribution sites. In calculating the centre of gravity, we had the following approach: locate facility with respect to the centre of geographic area, based on weight & distance traveled, establish grid-map area, identify coordinates & weights shipped for each location. The distances from zero point were individually measured using the map’s scale in kilometres. Each was solved using Microsoft Excel, finding the sums and square roots with respect to the four potential sites. In locating the centre of gravity, we have: X, Y = coordinates of the new facility at center of gravity; X1, Y1 = coordinates of existing facility i, W1 = annual weight shipped from facility i. We get the calculation from Excel: by multiplying each of the distance by the annual weight, add all of the sums of the multiplied weight and distance of all the customer suppliers, and all over the added weights in kilograms of all the suppliers, the result is the centre of gravity. This can be expressed in simplified formula, such as x = (weight x distance) + (weight x distance) + (weight x distance) and so on, all over the added weights. b. Load-Distance Technique Load-distance technique was computed for each of the different sites. Having determined the distances for the customer and supplier locations in the grid map using straight lines in Microsoft Excel, this was calculated. Potential site Minilya resulted a load-distance of 242118226.01, nearest the centre of gravity which is 2280.52 on X, and 2353.13 on Y. Computing this in Excel, the sum and square roots, the result was 2193.16, for Darwin. The given formula for LD = Load-Distance value has square roots for X and Y, and, X1 and Y1, as follows: l1 = the load expressed as a weight, number of trips or units being shipped from the proposed site and location; d = the distance from the proposed site and location; d1 is equal to the square root of (x1 – x)2 + (y1 – y)2, where: (x,y) = coordinates of proposed site; and (x1, y1) are coordinates of existing facility. Computing this in Excel, the square roots and the sums of the squares, for Darwin the following results could be gleaned: Minilya = 7676099.27; Port Hedland = 5638830.22; Bundanberg = 8693819.14; and Gladstone = 8330900.69. The results of these computations, meaning the summation of the load distances for suppliers with respect to each of the potential sites, Minilya got a low score, therefore it is more preferred among the customer suppliers. This result was acquired after all the other computations had been done in each of the respective customer suppliers. The x and y axis gave particular distances, measured according to the scale in the grid map, with zero beginning. c. Scoring model Location factors were added and multiplied for each of the four sites namely: Canberra, Perth, Sydney and Melbourne. Calculation was simple at Excel, each earned a weighted score. Perth has a weighted score of 80.70 and is therefore more preferred. Using the centre of gravity method, it is highly recommended that Minilya be given weight and recommendation, it is nearest to the centre of gravity. As shown in the grid map, it was established, through the various calculations, that Minilya has the nearest proximity, more cost effective. 2. WAREHOUSE SPACE AND LAYOUT PLANNING Handling in a warehouse or distribution centre will have a major impact on how effectively materials flow through the system. It will affect both the resource usage and the costs of those resources. Various methods of moving goods through a warehouse are used. Space and layout planning however are paramount in a smooth flow of goods. Added with this are transportation costs and proximity to markets, the factors to warehouse location. There must be optimization in warehouse layout to increase efficiency and accuracy. Also obtain a complete overview of inventory to help improve customer service. Streamline warehouse processes to reduce costs or maintenance expenses. With efficient men and resources, we can find ways to allocate warehouse space efficiently based of items and warehouse zones. Warehouse layout and sizing is a critical aspect of planning a new facility or re-designing an existing building. Many times organisations start from a fixed view of what size the facility will be, and most of the times the square footage is based on affordability. The problem with this, is that the building may end up to be too big, and therefore more expensive or too small and put operational constraints into the facility before the design even gets off the ground. Warehouse layout must be executed according to the changing needs, so you can achieve optimum warehouse efficiency. Establish high- and low-priority storage areas for optimum placement of goods and block locations to restrict movement of goods. The warehouse must be divided into zones to accommodate different storage needs such as temperature requirements or the rate of turnover of various items. Warehouse locations can be specified according to: warehouse, aisle, rack, shelf and bin. Then, they can be defined based on parameters such as space and pallet type. Control and flexibility can be done with it. Increase warehouse efficiently by automatically identifying optimal storage locations for items, based on the characteristics of items and warehouse zones. All warehouse activities are recorded in journals, so you can recreate a complete history of actions and item identifiers. 3. WAREHOUSE OPERATIONS MANAGEMENT A software can also be incorporated in the operations for maximum efficiency, less costs and quality-oriented service to the customers. One is recommended known as Warehouse Management in Microsoft DynamicsTMAX. This helps allocate warehouse space efficiently by automatically identifying optimal storage locations for items, based on the characteristics of items and warehouse zones. Some other factors include: all warehouse activities are recorded in journals, and a complete history of actions and item identifiers using an audit trail. An ideal warehouse operations management helps: to optimize warehouse layout to increase efficiency and accuracy; obtain a complete overview of inventory to help improve customer service; and, streamline warehouse processes to reduce costs. 4. Provide a detailed case study of the use of information technology (IT) in the warehouse. Use this as a basis for a review of how technology can help the warehouse manager achieve his objectives. A company with warehouse operation in trouble consulted Les Wood Associates Management Consultants. A case history was presented to the Consultants, and the following was found out: The company was closing its southern operation and consolidating in the northeast. They needed more warehouse space than the current 80,000 sq. ft. warehouse to their manufacturing operation. The Consultants were asked to help them to locate a new site and set up the warehousing there. Before looking for a new site, they studied the operation, and found that they could use the existing warehouse space more effectively, eliminate excess inventories, make use of other space within the building and eliminate the need for an outside operation. They added more information technology features, eliminated unnecessary costs, installed necessary and new software to help the warehouse manager manage the warehouse effectively, and the result was a $300,000 saving per year, and no upheaval to the operation. This is very important in a warehouse operation. Big companies ignore ordinary business activities, and if they see that they are growing, they just keep on expanding and expanding, without the necessary inventory. Inventory is very important. And this must be done with the right people or right Consultancy firm to conduct the survey. What must be done and looked at are the present sites and facilities, that is, if they are really that crowded or insufficient for new expansion. What happened in this case conducted by the Management Consultants was that they really looked at the reality of warehousing, and then they also saw to it that proper handling and adequate information technology features were in place. With these taken into consideration, extra costs can be avoided and savings earned. Instead of spending thousands, or millions, of dollars for expansion, earnings flow in, without going into the necessary expansion and extra costs. These are things that are normally ignored in big companies with huge facilities and a large manpower. Proper and reputable consultancy firms are just there waiting and ready to give ideal and detail recommendations. They have to be employed when expansion problems or in warehousing take place. 5. What do you understand by modern methods of inventory management? Compare these with more traditional models such as re-order point and EOQ. Discuss when it would be more appropriate to use one system or another. Inventory Management maybe conducted when as a result of rapid expansion in a particular company and some facilities maybe overflowing, or other activities may have to be ended or further expanded. Products, expansion, business activities will have to be investigated so as to accommodate other business deals. Les Wood Associates Management Consultants conducted an inventory management in a particular molding plant. The Company complained that their warehouse was overflowing and they were considering ending a lease to a long time tenant who was paying them considerable rent. They were asked to look at the layout and see if they would improve the space utilization. Their initial investigation revealed that the plant produced much. This led to large inventories. They then recommended a change of strategy. By holding supplies of the major packaging materials, it was possible to start manufacturing any product with 24 hours notices. There was then a reduction in finished goods inventory with associated financial and space benefits. The facility was enough, the warehouse was big enough, and manpower was sufficient and efficient enough. A change of strategy was the solution. With the current trend, this is more preferable than any other method of inventory. References: 1. www.microsoft.com/BusinessSolutions 2. http://www.lwassoc.com/Histories.htm. 3. http://www.microsoft.com/dynamics/ax. Note: Please double click the picture so you can see the whole document and print Note: Please double click the table so you can see the whole document and print Note: Please double click the table so you can see the whole document and print Note: Please double click the table so you can see the whole document and print Note: Please double click the table so you can see the whole document and print Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Warehouse And Inventory Management Report Example | Topics and Well Written Essays - 2750 words, n.d.)
Warehouse And Inventory Management Report Example | Topics and Well Written Essays - 2750 words. https://studentshare.org/business/1705819-warehousing-and-inventory-assignment
(Warehouse And Inventory Management Report Example | Topics and Well Written Essays - 2750 Words)
Warehouse And Inventory Management Report Example | Topics and Well Written Essays - 2750 Words. https://studentshare.org/business/1705819-warehousing-and-inventory-assignment.
“Warehouse And Inventory Management Report Example | Topics and Well Written Essays - 2750 Words”. https://studentshare.org/business/1705819-warehousing-and-inventory-assignment.
  • Cited: 0 times

CHECK THESE SAMPLES OF Warehouse And Inventory Management

Measure the warehouse efftiency

MRP will provide you with the ability to be pro-active rather than re-active in the management of your inventory levels and material flow (Inventory Solutions Logistics Corp).... The Master Production Schedule gives production, planning, purchasing, and top management the information needed to plan and control the manufacturing operation.... hellip; Materials Requirement Planning (MRP) is one such system procedure which calculates and maintains an optimum manufacturing plan based on master production schedules, sales forecasts, inventory status, open orders and bills of material....
5 Pages (1250 words) Essay

Property Asset Management

The paper "Property Asset management" states that management can mitigate this by scheduling the annual or periodic conversion dates of the instruments to be issued or to make it at company option to redeem with a conversion.... In Dell's decision to acquire as freehold warehouse facilities and retail outlets chains has an impact on capital investments.... There are two types of properties that they need, namely: a warehouse facility, and retail outlets....
9 Pages (2250 words) Case Study

Warehousing and Distribution: Reducing Warehouse Costs

warehouse and distribution professionals are today faced with a great challenge of reducing warehouse costs while maintaining the rising level of customer satisfaction and quality.... The service industry has also slowly embraced the concept so that to better their service to their Continuous improvement, on the other hand, is based on the lean and quality management approach.... It will further define quality management and lean approach and compare this approach to continuous improvement in a warehouse or a distribution centre....
7 Pages (1750 words) Essay

Network Planning Issues

Network planning in logistics can be defined as a set of tools that is required so as to perform analysis of the inventory levels, transportation costs and warehouse locations so that these elements are able to support effectively the level of customer service.... Since there would be a single warehouse that needs to be centralized and handle all of the operations starting from inventory keeping to that of semi-finished or finished products it is very much important to decide on the size and location of the warehouse that would be the next step of the logistic network planning....
4 Pages (1000 words) Essay

Computer Electronics Warehouse

My warehouse mission statement is to be consistent in superior delivery through proper management of warehouse and emerging as the United States' (US) leading retailer of computer/laptop and accessories with a vision of becoming the customers' first choice through providing a wider range of quality products at best price with superior advice.... In the present day context of global competition, warehousing management has as… t role to play as warehouses store goods including raw material, spare parts, finished and semi-finished goods, thus any delays in inbound and out bounding of such will lead to hamper the entire working process with loss of brand value and sales (Richards 5). The study intends o address how a computer warehouse can be kept operational for computer/laptop along with their accessories through delineating the advantages and the disadvantages of warehouse automation....
4 Pages (1000 words) Essay

Combining Private and Public Warehouses in Logistical System

Contract warehouses can also benefit in operations such as flexibility, expertise, and economies of scale as equipment, labor, management, and risk is shared amongst a number of clients (Voortman, 2004).... Logistics management.... Global Logistics management.... Companies thus combine private and public warehouses as they expand their scope in the logistical system and include several other logistic activities such as inventory control, transportation, customer services, order processing, and return processing....
2 Pages (500 words) Essay

Scientific Glass Company: Case Study

he firm was unable to control its inventory management and the inventory from the warehouse; hence, it was unable to meet the customer's demands.... In the paper “Scientific Glass Company: Case Study” the author provides the case study on Scientific Glass, which has problems managing its inventory, from 2010.... The company aims to use the background information on its previous actions to make its inventory normal.... hellip; The manager is also tasked with establishing a flow, inventory in the manufacturing process and warehouse....
1 Pages (250 words) Assignment

Inventory management ratio analysis of Ford and GM

The inventory turnover ratio determines the management's efficiency in converting the available inventory into sales.... Therefore, a company's performance ratio determines management efficiency in converting the stock into sales.... This essay describes inventory turnover ratio indicates the number of times the inventory in a specific company is converted to sales and replaced over a period.... The days in a specific period are determined and divided by the inventory turnover formula....
4 Pages (1000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us