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Warehousing This chapter presents a description of a small, fictitious warehouse that distributes office supplies and some office furniture to small retail stores and individual mail-order customers. The facility was purchased from another company, and it is larger than required for the immediate operation. The operation, currently housed in an older facility, will move in a few months. The owners foresee substantial growth in their high-quality product lines, so the extra space will accommodate the growth for the next few years. The description of the warehouse is of the planned operation after moving into the facility. The purpose of this chapter is to introduce the reader to the operations of warehouses. Basic function sare described, typical equipment types are illustrated, and operations within departments are presented in some detail so that the reader can understand the relationships among products, orders, order lines, storage space, and labor requirements. Storage assignment and retrieval strategies are briefly discussed. Evaluation of the planned operation includes turnover, performance, and cost analyses. Additional information can be found in other chapters of this volume and in the reference material. Role of the Warehouse in the Supply Chain Warehouses can serve different roles within the larger organization. For example, a stock r m serving a manufacturing facility must provide a fast response time. The major activities would be piece (item)picking, carton picking, and preparation of assembly kits (kitting). A mail-order retailer usually must provide a great variety of products in small quantities at low cost to many customers. A factory warehouse usually handles a limited number of products in large quantities. A large, discount chain ware house typically “pushes” some products out to its retailers based on marketing campaigns, with other products being “pulled” by the sto