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Business Logistics Management

Business Logistics Management. 8. The Storage and Handling System. Need for a Storage System. In reality, the demand of a firm can`t be met instantaneously. Inventory is used to adjust the over-all cost. To maintain the inventory, the storage system is necessary. Reasons for Storage.

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Business Logistics Management

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  1. Business Logistics Management 8. The Storage and Handling System

  2. Need for a Storage System • In reality, the demand of a firm can`t be met instantaneously. • Inventory is used to adjust the over-all cost. • To maintain the inventory, the storage system is necessary.

  3. Reasons for Storage • Transportation-Production Cost Reduction • Coordination of Supply and Demand • Production Needs • Marketing Considerations

  4. Storage System Functions • Holding • Consolidation • Break-Bulk • Mixing

  5. Material-Handling Functions • Loading and unloading • Movement to and from storage • Order filling

  6. Storage Alternatives • Space ownership • Rented space • Types of warehouses • Inherent advantages • Services • Documentation amd legal considerations • Leased space • Storage in transit

  7. Space Ownership

  8. Types of Warehouses

  9. Inherent advantages • No fixed investment • Lower costs • Location flexibility

  10. Storage in Transit

  11. Material Handling Considerations • Load unitization • Palletization • Containerization • Space layout • Layout for storage • Layout for order picking • Storage equipment choice • Movement equipment choice

  12. Layout for Order Picking

  13. Storage Equipment Choice

  14. Movement Equipment Choice

  15. Storage System Costs and Rates

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