Private warehousing is own or occupied on a short-term or long-term lease? Assumes both _ and _ so that warehouse remains full.

Thanks for the invite I leave the answer to experts specialists

According to him the need for him not to have needed it as a whole can lease all or part of an area if you need it, and if not you have a need it can be hired for a long time

option c Assumes both sufficient demand volume and stability so that warehouse remains full.

The private warehouse is a storage facility that is mostly owned by big companies or single manufacturing units. It is also known as proprietary warehousing and can be operated as a separate division within a company. The private warehousing can be done on on-site and off-site basis and serves as fixed corporate investment in land, building and equipment. On-site warehouse : The on-site warehouse can either be at some centralized location or can be separately situated at different manufacturing facilities.Off-site warehouse : The off-site warehouses are the storage facilities that are located closely to the marketing areas and are used for storing on-site inventory. These warehouses also serve as distribution center for finished goods.Advantages:

• Degree of control
• Less costly in the long term
• Better use of human resources
• Tax benefits
• Intangible benefits

Disadvantages:

• Its been costly for its fixed size and cost
• High opportunity cost (high risk)
• Low Rate of return
• High start-up cost

Hello Team,

Four Categories of Warehouse Costs

1. Handling. All expenses associated with moving product in or out of the warehouse should be included in the handling cost center. The largest component is the labor used to handle the product that moves through the distribution center. It includes receiving, put-away, order selection, and loading. It also may include labor to re-warehouse, repackage, or refurbish damaged product. Handling also includes all costs associated with the equipment used to handle product in the warehouse, such as the depreciation of equipment cost, and the cost of fuel, or electricity to power the equipment. Other handling expenses are the detention of truck or rail cars, operating supplies, and trash disposal. In effect, handling includes all those costs that are associated with “goods in motion.”

2. Storage. Storage expenses are costs associated with “goods at rest.” These costs would be incurred whether or not any product ever moved. Because storage expenses are related to the cost of occupying a facility, and these costs are normally accumulated each month, storage is expressed as a monthly cost. If an entire building is dedicated to an operation, storage expenses are the total occupancy cost for that facility.

3. Operations administration. These expenses are incurred to support the operation of the distribution center. Closing the facility would eliminate these costs. Included are costs for line supervision, clerical effort, information technology, supplies, insurance, and taxes.

4. General administrative expenses. Expenses not incurred for a specific distribution center are included in this category. General management, non-operating staff, and general office expenses are examples. Allocation of such expenses to each warehouse is a judgment call. Productivity Improvement Most warehousing costs, particularly storage and handling, can be influenced by improvements in productivity. Improved methods and equipment may enable the operator to increase the number of units moved without increasing labor, resulting in a higher number of units handled per hour. Changes in inventory, storage layout or equipment may enable the operator to expand the number of units stored in the same number of cubic feet of storage space.

The Risk Factor Cost per unit is escalated when a distribution center is not fully utilized. Fixed costs always will be influenced by the rate of utilization.

Regards,

Saiyid

Demand volume and stability, both are very much essential parameter in business to plan for any inventory stocking at warehouses

agree with expert answers above

D-1) use one-story facility   2) use straight line or direct-flow of goods   2) use efficient material handling equipment   4) use effective storage plan   5) minimize aisle space (but do not constrain flow)   6) make maximum use of facility height

  A-1) Receiving and unloading   2) Storage placement