2. Space Requirement
What is Space?
Area required for production system,
storage, inventories, handling equipment.
One of the most important considerations when determining
3. What’s the Difference Between Storage and Inventories?
Concept: Need for storage arises both for raw material as well as finished
Storage involves proper management for preserving goods from the time
of their production or purchase till actual use.
When this storage is done on a large scale and in a specified
manner it’s called Warehousing.
4. Inventory is an integral part of Warehousing.
Which means that warehousing is the broader term.
Warehousing refers to all the operations from inward
movement of the stock till the product is passed out
of the warehouse.
A designated place where goods are stored to
balance demand &supply uncertainty, to consolidate
upstream flow and distribute downstream flow as
The amount of goods and materials owned by a
company at a particular time, including parts
and finished products.
Any stored resource used to satisfy a current or
future need (raw materials, work-in-process,
finished goods, etc.).
5. Types of Warehouse
Owned, managed and
controlled by governments.
Owned, managed and
by co-operative societies.
They provide warehousing at
the most economical rates to
Generally, these warehouses
are constructed by the owners
near their business, farmers
Mostly used by manufacturers
wholesalers. Anyone can store
his goods in these
warehouses on payment of
used to store imported
goods for which import duty
is yet to be paid.
There are different kinds of warehouses that set each
of them apart from the rest in various ways.
6. Basic Types of Inventory
Any items used to
Maintenance, repair & operations
goods, all items that are consumed
during the production process
in-production, but not
yet ready for sale
All items that are
used for packing and
ready for sale
There are five fundamental types of inventory when it
comes to the products a business might sell.
8. Reasons to hold inventory Classification of inventory
✔To meet unexpected demand.
✔To safeguard against shortages.
✔To get benefit from discounts.
✔To facilitate production processes.
9. Each Process itself can be performed in a number of ways . For example there are
numerous ways in which the materials can be stored Racks, On ground , Pallets , etc.
Warehouse Process Flow
.Order Sorting and Packing
10. Effective Warehouse Layout Design
Loading and unloading
Shipping - Packing
Dedicate plenty of space for the
loading and unloading area to
If your warehouse has a picking
area, make sure it's in or next to
storage for easier access to
Keep this area separated from
the rest of the warehouse for
better organization and traffic
Keep reception separate so that
efficient sorting and inspecting
can be done.
Utilize every inch of space,
including vertical space that would
otherwise just be air.
The key decision in manufacturing, retail and industry businesses is how much
inventory to keep on hand. It's usually a business’s largest asset.
Any kind of Storage systems cannot do without a warehouse management system solution.
Businesses need to choose their type based on their requirements and needs.