Académique Documents
Professionnel Documents
Culture Documents
Warehousing
Cost trade-offs in Marketing 10-2
and Logistics
Product
MARKETING
Order processing
Price and information
costs
Place/customer
service levels
Inventory
LOGISTICS
Transportation
carrying costs
costs
• Manufacturing support
• Product - mixing
• Consolidation
• Breakbulk
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Factors Influencing Warehousing 10-4
in the Future
• Time - The best warehouse operations are those
designed to reduce every aspect of order cycle
time.
• Quality - Users now expect performance that
approaches perfection.
• Asset productivity - Reduce total cost, reuse, and
recycle.
• New kind of workforce - Requirements for both
management and labor will change significantly.
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Advantages of Public Warehousing 10-5
• Conservation of • Flexibility
capital • Tax advantages
• Use of space to • Specific knowledge
meet peak of storage and
requirements handling costs
• Reduced risk
• Economies of scale
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Disadvantages of Public Warehousing 10-6
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Advantages of Private Warehousing 10-7
• Control
• Flexibility
• Less costly
• Better use of human resources
• Tax benefits
• Intangible benefits
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
The Relationship of Demand 10-8
to Warehouse Size
120
110
100
90
Inventory (‘000 units)
80
Public
70
warehousing
60
50
40
30
20 Private
warehousing
10
0
Jan. Feb. M ar. Apr. M ay June July Aug. Sep. Oct. N ov. D ec.
Time (months)
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Determinants of Storage Space 10-9
Requirements
These Situations Decrease the Need These Situations Increase the
For Storage Space Need for Storage Space
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Comparison of Traditional Costing 10-10
Source: Terrance L. Pohlen, “Activity Based Costing for Warehouse Managers,” Warehousing
McGraw-Hill/Irwin Copyright
Forum 9, no. 5©(May
20011994),
by Thep. 1.McGraw-Hill Companies, Inc. All rights reserved.