PHYSICAL INVENTORY AND WAREHOUSE MANAGEMENT

Hello guys!

So, ready to hear about warehouse and so on? We have some idea to share to you guys about the title, physical inventory and warehouse management 🙂

 

INTRODUCTION

As you guys know, inventory is stored in warehouse, the physical management of inventory and warehousing are intimately connected. Some cases show that some of their inventory may be stored for an extended time. In other situation, some inventories are turned over rapidly, and the warehouse functions as a distributor center.

WAREHOUSING MANAGEMENT

Objectives of warehouse are to minimizing cost and maximizing customer services.

Warehouse operation must perform as the following:

  1. Provide timely to customer.
  2. Keep track of the items so they can be found readily and correctly.
  3. Minimize the total physical effort including cost of moving goods into and out of storage.
  4. Provide communication links with customers.

Cost of Operating Warehouse:

  1. Capital cost – space and material handling equipment.
  2. Operating cost – measure of labor productivity is the number of units that an operator can move in a day.

WAREHOUSE ACTIVITY

  1. Receive goods – accepts goods from outside transportation.
  2. Identify goods – identified with the appropriate stock-keeping unit (SKU) number and information are recorded.
  3. Dispatch goods to storage – sorted and put away.
  4. Hold goods – kept in storage and under proper protection.
  5. Pick goods – selected from storage and brought to marshaling area.
  6. Marshal shipment – checked for omissions or errors.
  7. Dispatch shipment – packaged, shipping documents prepared, goods loaded in right vehicles.
  8. Operate information system – update stock by human memory or sophisticated computer-based system.

Maximize Productivity and Minimize Cost

  1. Maximum use of space – fully utilize space in warehouse.
  2. Effective use of labor and equipment – material handling, second-largest capital cost and labor, largest operating cost that need to be trade-off between them.

FACTORS INFLUENCE EFFECTIVE USE OF WAREHOUSES

  1. Cube utilization and accessibility – not just on the floor of warehouse.
  2. Stock location – concerned about the location of each items.
  3. Order picking and assembly – after order received, need to be retrieved, assembled, and prepared for shipment.
  4. Packaging – protective packaging.

PHYSICAL CONTROL AND SECURITY

  1. A good-part numbering system.
  2. Well-documented transaction system – identify items, verify quantity, record transaction and physical execute the transaction.

INVENTORY RECORD ACCURACY

Accurate inventory records will result in:

  • Operate an effective materials management system.
  • Maintain satisfactory customer services.
  • Operate effectively efficiently.
  • Analyze inventory.

Inaccurate inventory records will result in:

  • Lost sales.
  • Shortages and disrupted schedules.
  • Excess inventory.
  • Low productivity.
  • Poor delivery performance.
  • Excessive expediting.

TECHNOLOGY APPLICATION

  1. Bar codes – improves the speed of data entry and accuracy of data retrieved.
  2. Radio Frequency Identification (RFID) – accurately identify products that are within containers or otherwise hidden from view.

 

For more information, you can watch in the link below 🙂

Vector – Management system

Warehouse management

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