Importance of Storage Warehouses

17 April 2010 by MediaCube
Importance of Storage Warehouses

Storage warehousing is of great importance to the fast developing businesses of today. It helps lessen the expense of companies in having to transport all the goods to different places. Storage warehouses serve as depots for merchandise or other parts for manufacturing companies.

Storage warehouses are basically commercial buildings used in storing goods or merchandise owned by different companies. These warehouses are generally used by companies involved in businesses. These businesses include exporting, importing, manufacturing, wholesaling, transporting, and many other industries that require large storage facilities. Storage buildings are often comprised of very wide areas that are mostly located in industrial zones.

Storage warehouses are equipped with cranes, forklifts, and container trucks which are used in loading and unloading cargos. Some of the modern storage warehouses are set with automated storage systems and would no longer require manpower inside the facility. Those storage warehouses that hold perishable goods are geared up with large refrigerators which keep the products safe and fresh. Most of these warehouses maximize vertical space measuring as high as 20 meters.

Goods and merchandise are stacked in ISO standard pallets and loaded on pallet racks. The pallets containing the products are moved through the use of high-tech automatic conveyors. The automated storage and retrieval machines are linked to a computer run by logistic automation software. Tracking of merchandise in storehouses is monitored through the employment of Warehouse Management System or WMS. WMS is a computer program which stores and retrieves database containing inventories and records of transactions of the warehouse. This computerized system is maintained and watched by logistic personnel.

With the introduction of Just In Time technique or JIT, the use of traditional storage warehouses have declined. JIT offers a much reduced processing of inventories by way of delivering directly the products and commodities to retailers. This is similar with automobile industries wherein the parts are directly delivered to the assembly plants. However, due to the offshore outsourcing, the distance between manufacturers and retailers is of another major concern. This demands at least one warehouse in every country or region of operation in order to cater to the expansion of the business.

The recent development of storage warehouses presents double purpose. Storage warehouses can now be manipulated as retail stores. The traditional high ceilings with decorative shelves are replaced with sturdy industrial racks. These racks encompass ready to sell items placed just below the racks while merchandises which are in pallets are usually stored on top of the shelves. In this way, one building can be used as warehouse and at the same time offers retailing that can save a lot of resources compared to having two separate buildings for each purpose.

Today, many exporters are using storage warehouses as a means to establish retail outlets for a particular region or country. This new system also facilitates in reducing the cost of products for the consumers and relatively increases the production sales. Warehousing is considered a great tool by many manufacturers in directly reaching consumers without the need of middle men or agencies. This saves manufacturers from additional fees, as well.

Storage warehouses are also furnished with many security features such as surveillance camera as well as burglar alarm. Some even employ security guards to secure the whole area of the facility. The majority of the storage warehouses are made up of metal building. All of the building’s parts like beams, frames, walls, and roofs are made from high quality steel. With these materials, the structure is more flexible and can be modified easily in less time compared to warehouses made of wood or concrete.

Many storage warehouses are centrally located in areas adjacent to key destinations and where transportation is accessible. Warehouses owned by big businesses are often large enough to accommodate a good number of consumers in the country of operation. This allows them to easily distribute the goods without having to ship from country to country. Also, the development of the Internet has had a great influence on the system of warehousing. Internet-based stores do not need any physical point of selling but only require storage warehouse to gather all needed goods for the consumers.

Operators of storage warehouses are responsible for protecting all the products that have been deposited in their respective warehouses. The storage warehouse should have insurance, too. Prices of these services may vary depending on the point of location and service provided. Storage warehouses are sometimes leased for a year or longer depending on the clients. Some big companies build their own storage warehouses where their major market is located.

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Question about warehouse

How many TVs should be shipped to each warehouse to minimize the cost? What is the minimum cost?
A manufacturer of HDTVs must ship at least 100 TVs to its two West Coast warehouses. Each warehouse holds a maximum of 100 TVs. Northern warehouse already has 25 TVs on hand. Southern warehouse already has 20 TVs on hand. It cost $12 to ship a TV to the nothern warehouse and $10 to ship a TV to the southern warehouse. Union rules require that at least 300 workers be hired. Shipping a TV to northern warehouse requires 4 workers, while shipping a TV to southern warehouse requires 2 workers.

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Category : Business

18 Responses to “Importance of Storage Warehouses”

  1. Wordpress says:

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  2. Girl 2 says:

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  3. I believe this is a type of question I've seen in a linear programing course. First, define your variables:

    x- number of tv's to ship to Northern
    y- number of tv's to ship to Southern

    Then you must construct a set of inequalities that describes the specifications in your problem.

    Ship at least 100 -> x+y>=100 (that is greater than or equal to 100)

    Northern already has 25, but can't hold more than 100, which means that they can't take more than 75 -> x<=75.

    Southern already has 20, but can't hold more than 100, which means that they can't take more than 80 -> y<=80.

    This bit about the minimum number of workers, northern needs 4 workers per TV and southern needs two workers per TV and there cannot be less than 300 workers means we get the following inequality:

    4x+2y>=300

    Graphing all the inequalities on the xy-plane yields a region of possible solutions that meets all of your requirements. To find the solution that minimizes cost, there is a theorem that states it must be a point in one of the corners of this region. If I did my calculations correct, the configuration that minimizes cost has to be one of the following:

    x=35, y=80
    x=50, y=50
    x=75, y=25
    x=75, y=80

    Just figure the cost on each of these. The one with the smallest cost is your answer. Hope this helps.

  4. WPMixer says:

    like a Fuax News rally

  5. truth says:

    How do you top this performance?

  6. crocery says:

    Funny, you should ask. I am in fact a distributor of the Utility Warehouse Discount Club.

    Before continuing, I would like to draw your attention to my blog: http://www.hardnosedandlazy.co.uk, which discusses the advantages of joining the club.

    Finding the right distributor is very important in getting a good service from the Utility Warehouse Discount Club. The way the company works means, that the distributor who convinced you join the club is equally responsible in helping you sort out any problems you may encounter. The company is generally leagues above other utility providers in looking after their customers, with 90% of calls being answered within 15 seconds.
    Common reasons for people (there are 230,00 customers in the UK) joining the club are because of their ability to provide good value utilities (their average energy prices are the lowest over the last 5 years), and because it can help people manage their household bills a lot easier. The club can do this by allowing you to get all of your household bills sent to you in one envelope each month, rather than 4 or 5.

    So, how can you join? Just go to http://www.tinyurl.com/smartchoice, and you can start saving money today.

  7. Brian Vu says:

    They do use the middle tension. Though, I have gotte racquets from them strung a pound or 2 tighter. Just expect it to be in the middle.

  8. Free Blog says:

    love it when dave and carter look at each other at about 4:24 :D

  9. Josh K. says:

    ask building contractors for quotes.

  10. nacao says:

    BEST EVER.

  11. WPBlog Shop says:

    i really love the start of this song, the way it builds up, such dmb style…rip leroi your touch will be missed

  12. guzen says:

    “He would put that horn in his mouth and make the most astoninglishy honest music that could knock you over and it would sink right to the middle of you.” -Dave Matthews -RIP LeRoi Moore-

  13. Blogger says:

    and not to forget this outstanding sax-solo starting in 4:38 (RiP LeRoi)…omg, I just love this band ;)

  14. Transportation costs are dictated by supply of trucks in the area, cost of fuel, distance, and whether the truck would have a return load or would be deadheading to the origin. Costs also vary by area of the country, if short or long haul, etc..

    Typically, an estimate would be a 20% surcharge on top of regular dry van service as a general rule. Use $2 a mile and you'd be safe.

  15. I lived in Hawaii for years and they had SPAM and RICE in storage for years

  16. Xplosys says:

    Ok, this might be a bit of a stretch but you asked:)
    You're located in the business district right? Are there people who bike to work in the area. If so, you could install iron bike racks and rent them out by the month to people who want to keep their bikes locked in a secure facility when they're working.

    Just like the Self Storage places, they will need their own locks and no bikes can be left in the facility after your normal closing hours when the warehouse is locked up. Won't work for places that get snow and ice.

    It's an idea starter.

  17. rails says:

    How do you top this performance?

  18. Nate says:

    Yes it is insulation. likely to be vermiculite, not asbestos, therefore not harmful.

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