ASSIGNMENT

Name. Hamza Younas

Roll no MSCI19111249
Class. BBA 7(D)
SUBMITTED TO Syed Tariq Rasool

Date. 07-10-2022
Warehousing:
Warehousing is the process of storing physical inventory for sale or distribution. Warehouses are
used by all different types of businesses that need to temporarily store products in bulk before
either shipping them to other locations or individually to end consumers.

Eg. many ecommerce businesses will purchase products in bulk from their suppliers, who ship
them to their warehouse for storage. When an end customer then places an order from the
ecommerce site, the business — or its  third-party fulfillment  provider — picks and packs the
product from the warehouse and ships it directly to the customer.

Inventory, and its types

Inventory is:

i) An asset, tangible or intangible,

ii) An asset that can be realized for revenue generation or has a value for exchange.

iii) An asset which is in process but is meant for sale in the market.

Types of inventory

Raw materials

Work in progress

Finished goods

MRO inventory

Buffer inventory

Cycle inventory

Decoupling inventory

Transit inventory
The Role of Logistics in
Supply Chains
supply chains start with the demand from a customer for a product. Products begin in the form of
raw materials that must be sourced, gathered, converted, and manufactured into the required
products. Then, the product is transported to end-users. Products will often stop at warehouses
as they move through the product supply chain. There are many steps to convert and transform
raw materials into final products that will be delivered to a consumer. Logistics supports the
transportation steps in supply chains. Logistics can be categorized as :

Internal logistics

The logistics of moving materials, parts, and products inside a facility or single location

External Logistics

The logistics of moving materials, parts, and products between multiple locations, such as:

suppliers

factories

distributions centers

receiving/ shipping docks (inbound and outbound logistics)

Value chain
A value chain is the process of business activities through which a company creates a product
and presents it to consumers. It works by identifying the production activities that give a
company its competitive advantage either through cost reduction or product differentiation and
presenting a product that provides value to consumers.

Eg: An example of a value chain is the production process of coffee beans from the farm to the
factories for processing, through different roasting grades, and finally to the coffee consumer as
various coffee beverages. The whole process aims at providing value for the coffee consumer.
JIT (just in time) in
production & operations
Just-in-time, or JIT, is an inventory management method in which goods are received from
suppliers only as they are needed. The main objective of this method is to reduce inventory
holding costs and increase inventory turnover.

Importance of just-in-time

Reduces inventory waste

Decreases warehouse holding cost

Gives the manufacturer more control

Local sourcing

Smaller investments

Ex: The just-in-time philosophy was initially known as the “Toyota Production System” (TPS) or
just-in-time manufacturing. The approach was developed in post-World War II Japan, when car
manufacturing faced shortages and had to minimize resource consumption to survive and remain
competitive.

Measure to improve SC
These are the five key metrics you should track to optimize your supply chain operation

1. Perfect order index

2. Cash-to-cash time

3. Supply Chain Cycle Time

4. Fill Rate

5. Inventory Turnover

Example:
Increase your supply chain’s visibility

Automate where it counts — and keep all necessary parts well-managed

Engage your IT department

Assess your training programs

Implement a good project plan

Lead time in SC
Lead time is the amount of time that passes from the start of a process until its conclusion.
Companies review lead time in manufacturing, supply chain management, and project
management during pre-processing, processing, and post-processing stages. By comparing
results against established benchmarks, they can determine where inefficiencies exist.

Reducing lead time can streamline operations and improve productivity, increasing output and
revenue. By contrast, longer lead times negatively affect sales and manufacturing processes.

Ex: an apparel company may have a 7-day lead time for custom t-shirts. Typically, this
measurement does not include shipping time.