Warehousing
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Warehousing
Warehousing as an integral part of every logistics system plays a vital role in providing a desired level of customer service at the lowest possible total cost
primary link between producers and customers (importance increases)
That part that stores products at and between point of origin and point of consumption, a.w.a. providing information to management on status, condition and disposition of items being stored.
Term distribution center (DC) also used but not identical : Warehouses (WH) store all products, DC hold minimum and predominantly high-demand items.
WH handle prod. in four cycles: receive, store, ship, pick; perform a minimum value added activity, collect data in batches, focus on minimizing operation cost to meet shipping requirements.
DC handle prod. in two cycles: receive and ship; high percentage of value adding, incl. final assembly, collect data in real-time, focus on maximizing the profit impact of meeting customer delivery requirements...