Inventory and Warehouse



Inventory plays a key role in Logistics Management . The inventories that are directly affected due to outbound logistics are ;_

-----     Finished goods inventory

-----     Pipeline inventory (Primary Transaction)

-----     Warehousing inventory

-----     Pipeline inventory (Secondary Transaction)

-----     Retail inventory

The typical cost trade - offs between inventory an others decisions in Logistics would be :-

-----     Inventory vs Transportation costs

-----     Inventory vs Stock out costs

-----     Inventory vs spoilage and material handling cost .


The purpose of warehousing is to arrange placement of products , provide storage facility , consolidate them with other and similar products , divide them into smaller quantities and to build up a required assortment of products . The necessities of providing warehousing are ;

-----     To get continuous and uninterrupted supply in the market area .

-----     To achieve full benefit of the economies in scale in transportation and production .

-----     To satisfy time and place utility .

-----     To meet the demand fluctuations of customer .

-----     To tide over variations in supply .