• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

International trade management

Extracts from this document...

Introduction

Cover page Massey University College of Business 1. Introduction This essay is about the different types of warehousing solutions available to an organisation. It begins with the role and importance of warehousing in the logistics system and then with different measurements, different types of warehousing solution will be presented to organisations. 2. Analysis 2.1 Roles of warehouse When talk about warehouse, usually, people will have the idea that it is the place that can store raw materials and finished goods for some a period of time for a business organisation. For example, a manufacturer has to get a warehouse to store its raw material and inventory holds for sales and the warehouse capacity has to meet the normal operational needs of the organisation. Therefore, warehouse is a point in the logistics system where a firm stores or holds raw materials, semi-finished goods or finished goods for varying periods of time (Coyle, Bardi & Langley 2003) and warehousing includes a wide spectrum of facilities and locations. The warehouse performs several value-added functions in the logistics system. Warehouse can consolidate transportation and make it more economy. This function is more important when the organisation faces a lot less-than-truckload shipments. Warehouse can consolidate the LTL shipments and ship a volume unit to other destination. A second function of warehouse is the product mixing for customer order. ...read more.

Middle

incorporating public warehousing information into private plans, * Local deliveries * Unpacking, testing and order assembling operations * Improved protection from pilferage and natural hazards (Attwood1992) Currently, there is a growing trend of public warehousing to use contract or third-party warehouse. On the other hand, if the company has a stable demand and locates in the dense market area and the organisation wants to have control of its inventory, it is better for the organisation to have a private warehouse. If an organisation has multiple production lines produce various product, they can have a private warehouse because when the demand for one products decrease, they can use another product as replacement. So the warehouse is always fully used. In addition, the private warehouse should be located near the dense market area because less than load shipment will cost more. So, warehouse that closes to the market or the retailers will financially benefit the company. In addition, an organisation can have a better control if they have a private warehouse. The physical control will have fewer opportunities for the loss or damage to the goods. Further private warehousing can combine use of this facility with company's other regional needs. For example, the sales and customer services can be in the same building, therefore total cost will be lower than having two separate facilities. (Coyle, Bardi & Langley 2003)With the development of just-in-time inventory and distribution systems, private warehouse become more suitable for those need. ...read more.

Conclusion

The mechanised warehouse will use machines to do the stock handling while automated warehouse will use central computer to control all the stock handling and control. So there are many different types of warehousing solution based on different standards. 3. Conclusion Above all, warehousing solution is important in the whole logistics system and generally, warehousing solution can be divided into public and private warehouses according to the ownership. There are also centralised and decentralised warehouse when considering the location, type and functions of warehouses. Based on the facilities, warehouse can be categorised as simple , mechanised and automated warehouse. No matter which type warehousing solution the organisation, the organisation should let it to balance the imbalances between production and demand. The size, characteristics and types of the warehouses should be determined by the nature of the products, the length of time stock will be held, the area whether close or far away from the market, the cost of running and the characteristics of the demand or order pattern. (Gattorna & Walters 1996) 4. Reference John J. Coyle, Edward J. Bardi and C. John Langley Jr (2003) The Management of Business Logistic, A supply chain perspective, 7th edition, Mason, Ohio, South-Western Thompson Learning. Peter and Nigel Attwood (1992) Logistics of a Distribution System, Aldershot, England Grower Publishing Company Limited J. L. Gattorna & D.W. Walters (1996) Managing the Supply Chain, a strategic perspective, Hampshire England, Macmillan Press Ltd ?? ?? ?? ?? 7 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Project Management - planning an all inclusive carnival concert in the North Western end ...

    From the GANTT chart we are able to get the project estimated start date and end dates which are 01/05/11 and 6/6/11 respectfully. We found our critical path for the event "Soca In D Sun" to be 28 days (Appendix G (1))

  2. The Main advantages and disadvantages of mixed economy system

    According to this data Norway's economy is healthy. In China, where GDP growth in 2008 kept increasing up to impressive level of 11.9% and unemployment rate keeps decreasing, inflation rate spoils the whole picture, reaching level of 4.8% in 2008. However, we can say that Chinese economy is doing well.

  1. Business management

    This can be seen the graphs and the data collected in the main findings of the secondary data. 2-Summary of primary data5: - The discussion with the owner has helped me gather information to proceed with my analysis. It was seen that the customers were satisfied with the quality of food item served.

  2. Marketing. In my project, I am going to be looking at how Nestls Smarties ...

    Question 3 attempted to find out the socio economic group of the sample. Question 4 was asked to see how often the product is bought. Question 5 was asked to find out where the product is mainly bought. Question 6 was asked to find out whether people thought the prices were higher or lower than they actually are.

  1. New business plan

    This makes our IP strategy valuable in this case. Besides Chinese tourists, we are also targeting tourists from other countries such as Europe and Japan tourists. Like movie world, Emperor's House gives them a place to indulge in their fantasy.

  2. Orgnizationl, Theory, Change & Culture

    Third, we look at four rules or guidelines that companies can use to decide whether a specific business decision is ethical or unethical. Fourth, we consider the sources of business ethics and the way companies can promote ethical behavior. Finally, we examine the legal environment of business and describe the

  1. MG 309 Strategic Management

    Satisfaction that a customer gains from the services being provided is the major issue in business level strategy. This satisfaction is contributed from several different strategies used by the firm in order to operate the business. Thus this research intends to identify the effect of business level strategy on customer satisfaction.

  2. Ford Company Analysis - corporate structure and financial analysis

    (R1+ R2+ R3 + R4)/4 = 0.89 Variance and standard deviation of return 2011: Var(R)= 1/(t-1) (R2008 - )2 + (R2009 - )2 + (R2010 - )2 + (R2011 - )2 Var(R)= 2.319 SD(R)== 152.3% Standard error and 95% confidence interval: Standard error= SD(R)/4 Standard error= 76.15% 95% confidence interval= Historical average return ± (2x standard error)

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work