Why Warehousing Exist in Supply Chain - Assignment Example

Why warehousing exists in the supply chain Warehousing is necessary in order to match volumes and different rates of flow since consumption and production patterns never coincide. Further, warehousing enhances in the attainment of the storage function for surplus products. Through this, sellers are able to deliver their products to the market at higher prices, and a nation is safeguarded against uncertainties of scarcity. In the context of manufacturers, warehousing enables manufacturers to purchase raw materials in large volumes and store them.

Finally, warehousing aids in the attainment of regrouping function within the supply chain. This function enables effective product assortment and rearrangement. Distinguishing between warehousing, distribution center, and cross-docking facilities Warehousing refers to the process of products storage through enhancement of maximum usage space, management and control products into and out of the warehouse, and reduction of time delays in the supply chains. Distribution centers provide warehousing services by enhancing the rapid movement of products in order to maximize the output.

Cross-docking provides warehousing services by reducing time delays in the supply chain through effective reception of products and shipping of the same products immediately without a need for storage (Richards 179). Tradeoffs on space labor, and mechanization Fixed slot and variable slot are commonly used means of assigning products to available space. For a fixed slot location, each product has its designated slots. This method has a limitation of low space utilization for products that are seasonal.

On the other hand, variable slot location comprises of empty slots for storage, which are assigned products depending on the availability of space. This method results in effective utilization of space. Build up is regarded as economical in comparison to build out. This is because building out results in the consumption of more land, which is expensive. On the other hand, build-up leads to a reduction of cubic-foot cost, but the cost of equipment for the warehouse increases. Employees in a warehouse are involved in restocking or picking out orders.

This indicates that there is a need for a warehouse to create different paths and areas of operation for picking and restocking employees in order to ease congestion in the warehouse. This may need an effective information system, which has the ability to locate where employees are at all times.