PRAVEEN S

2214100868
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SEMESTER - 5
COURSE CODE & NAME DBB-3125 & WAREHOUSE MANAGEMENT

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 SET 1

1. Warehouses are extremely large retail storage structures. An inventory warehouse proved
useful in the supply chain, to store products before sale. Logistics, warehouses and inventory
software transport and store them. Warehouses assist stores to satisfy demands, store goods &
also ensure that they are delivered quickly.
i/ Fashion Retail Warehousing Problems
It is also difficult to measure inventories of fashions stores because they sell diverse products,
and any differentiation, be it size, color or style is a separate product.
Solution: Many business organizations require inventory recommendation and counting
technologies such as RFID/barcode scanning; inventory problems may be effectively prevented
or solved by utilizing data on predicted demand, and add timely inventory changes.
ii) Fashion buying is seasonal, promotional and variant which makes it difficult to predict its
trends. The organisation turns out to have a lot of inventory for unpopular products while
keeping a very limited stock for the more popular ones.
Some of the impacts are that through demand forecasting and planning, there is minimization
on issues to do with seasonality. The total demand of a material in the market can be
approximated by consumer preferences, timing of ordering, frequency of ordering, past records,
and marketing trends into the market by the retailers. Seasonal labour and rules regarding the
warehouse reduce them even more.
iii) Space Use Fashion selling entails cycling of products within the warehouse hence calling for
efficient use of the space due to the high turnover. They thereby experience space imbalance
consequences, which include clutter, wasted effort, and misuse of space.
High rise storage, carton on end, narrow aisle racking, and other higher capability storage
methods also augment the potential storage area of a ware house. Advanced New WMS
improves on space, layout, and picking and put away.
IV) Product Storage/handling Challenge: The best way to minimize the type of harm is to protect
apparel especially the ones that are seasonal like silk and satin. Mismanagement can lead to
production of substandard products, inability to sell/get products back to customers and
complaints.
Solution: Employing technology and Responsive Climate Controlled Storage Facilities enhances
the quality of the product that the warehouse workers are teaching. Supervisors could a lot of
the time observe storage and handling of products.
V) Distribution and Logistics Issue: The merchants of fashion products and their customers
required a swift way of delivering those products to the market. Failures in product distribution
may affect the actual sales and negatively influence customers’ satisfaction levels.
Routes and tracking enhance the distribution management. If there is such an opportunity, then
the communication with the logistics provider could help.
Shop shrinkage
Some of the factors that lead to a reduction of retail inventory includes theft, damage, or
administration. Retail losses may occur from the difference between physical inventory and
stock.
Employees themselves and consumers are the main offenders that lead to shrinkage through
shoplifting. It is therefore necessary to prevent shoplifting, use security cameras and alarms for
merchandise that is commercial.
Damage that occurs during handling, storage, and transit reduces products’ dimensions.
Perftorming of arrived product by correct handling and doing quality check helps to save them
from getting damaged.
It is also true that failing to handle, enter and process inventory data might decrease company’s
inventory. Stock and inventory controls by management can fix these:Stock and inventory
controls by management can fix these:
Shrinkage costs reduce store profits The following ways in which shrinkage costs decrease
profits point to an implication that it is compulsory to halt the vice.
Shrinkage leads to poor management of stocks, and hence, more problems in the supply
chains.
Mitigation methods
Security: The measures that should be taken are installing cameras, hiring guards and using the
anti-theft devices.
Educate personnel to prevent shortages by given ways of internal theft and product damage.
IC, I&V, BOD, and reporting reduce shrinkage.

2. This understanding states that merchandise management is the function that entails buying,
selling and fashioning what customers purchase. Since these activities must be efficiently
coordinated and merchandising department has to be in sync with the business goals it is very
crucial to be well-organized. Management of merchandise is organized as follows:Management
of merchandise is organized as follows:
Supervisors, or purchasers are in charge of goods. This function sees merchandising planners
as those responsible for planning, supplying and getting ready customers. Marketing
communications, sales, and merchandise organization aid achieve corporate strategies.
The purchasers Customers were ordered to buy Online or in store. They evaluate markets,
bargain with processors and sellers and make sales and customer expectations selections.
Knowledge in the brand or category widens their product mix.
It Directs Product planners Merchandising planners are these who navigate demand and stock.
Through the available sales records they are able to anticipate incidences and stocks enough to
meet their needs without necessarily stock piling. Stock require being restocked, and rotated.
Visual traders: They make attractive finished products that does retail selling. To be more
precise, it is necessary to visualize and brand ideas that help attract consumers. This is an
aspect because merchandising and seasonal promotions help to close sales.
Allocators; Allocated storage specialists organize. It explains that each store is restocked
depending on the movement of sales, size of the business, and traffic. This strategy maximizes
stock.
Structure of Organization
The hierarchy generally includes:
Manager/director of middle-management merchandise: It is evident that buyers and planners
are some of the certain customers of the company.
Visual merchandisers and allocation specialists are responsible for this.
Management of merchandising strategy is facilitated by clear and responsible communication
pathways for strategy planning and choice, as well as the strategy’s execution.
In management of a ware house, there must be customer understanding. Main clients:Main
clients:
Retailers
Users purchase products from stores or organizations without the help of brokers. It is required
to have them in their warehouses to stock, track, and dispatch to branches. Specials and
seasonality are highly valued by the consumers, which, therefore, makes the retailers seek for
more flexible storage space.
II) Wholesalers
Thus, we are wholesale for manufacturers, retailers, and enterprises. Godowns are warehouses
where large stocks are accumulated before forwarding to the customers. Retailers also require
warehouses and inventory management like the wholesalers.
III) Distributors
Distributors take producers’ goods to shops. Some of the supply chain positions are
replenishment, put-to-light, order and pick and pack. Cross docking and also product flow
logistic is very vital in any warehouse.
IV) Makers
Raw material receives and stores manufactures transform to WIPs and finished goods for sale.
Manufacturing is followed at factory depots. They have presented the concept of adequate
provision of warehouse hall space and proper storage of raw materials and commodities as a
way of reducing bottlenecks in production and processing lines in manufacturing.
E-commerce businesses
Retailing through the internet poses challenges on the need to relocate products from the
manufacturer to the end user and for storage. However, these warehouses should enhance
selection, packing, and the conveyance of the products in the warehouses. Technology assists
in the efficient ordering, receiving, and putting away of stock within the stock warehouses.

3.
A merchandise buying and distribution function that involves regulation of the type, quantity, and
variety of products offered to customers is known as product assortment management. This is
used to find out the maximum product range for stores or online shops to serve the clients and
meet and provide the right quantities in stock. Therefore, product assortment management
guarantees the proper stock compositions in terms of time, quantity, and location.
Key Product Assortment Management Elements:Key elements in KPA:
i) Selection: Deciding on the range of goods in the store to satisfy the customers. This may
include the careful studying of the market, the customers and the sales figures.
ii) Organization: Merchandising which entails sorting the products so that the shoppers can
locate them, developing a topic and arranging the products on the basis of the theme.
(iii) Balancing: Thus, one should coordinate shipment, purchasing, and sales in terms of a
number of elements, nonetheless, items should not be overstocked or understocked. To avoid
stock outs and surplus stock a business must be able to set the right quantities with regards to
its products.
iv) Evaluation: On this basis, it is possible to evaluate the sales results, consumers’ response,
and market shifts to decide on changes to the product offering.
Retail replenishment refers to cases where items are ordered for the future use in selling. This
includes general functions such as simple stock management to ensure that the business does
not run out of stock or has excess of stock, or to determine the use and quantities that needs to
replenished.
Key Retail Replenishment Goals:Thinking specifically in terms of retail replenishment it is now
possible to identify several strategic goals:
i) inventories Management: Maintaining the stock level to the extent that all the products that
need to be stocked are stocked but none in excess.
ii) Optimizing Stock Turnover: It also guarantees that all the commodities on the shelves are
popular and supply is not more than demand, which results to the offering of discount prices
hence reduced profits.
Enhancing Customer Satisfaction: Minimising on stocks out to enable customers to have a nice
shopping experience and add value.
iii) IT in Retail Restocking
This paper will thus describe how IT can enhance profiling and minimize time and cost of
replenishing retail products. How IT helps retail replenishment:IT tools support to recharging of
merchandise:
- Data Management and Analysis
Electronic businesses use it systems to assess past sales, market trends, and consumers’
purchasing behaviors. Some predictive analytics and forecasting technologies leverage this
data to forecast tomorrow’s sales so that merchants can appropriately order inventory.
- Automation of Inventory Management
Automated inventory replenishment is executed with the help of the advanced WMS and IMS
systems at the final stage. Precise stock checking of stores is maintained The stores’ stock is
replenished once when it gets low via such systems.
The next causal aspect of concern, as related to the topic of the research is:
IT systems complement other technologies in supply chain management to facilitate the Flow
between retailers and suppliers. It also helps in expediting the replenishment orders and
increases the orders taken accuracy.
IV) POS Integration
Information from POS systems are used to predict the operating sales hence the estimated
amounts are used to do the restocking. when connected with stock, the POS system’s sales
data are used to restock the goods.
advanced replenishment algorithms
The field of IT replenishment decisions requires such algorithms and even artificial intelligence.
They take into account stocks, rates of sales, and other factors that relate to the change in
customers’ demand in a given year to arrive at the best methods of refilling.
VII Mobile/Cloud Solutions
Mobility and cloud technologies make it easier for the merchants to get some details from the
anywhere related to inventories. These technologies allow regular monitoring of inventory over
the networks, which makes the replenishment faster and improves supply chain management.
 SET 2

4.It could be defined as the strategic process of the retailers and the suppliers to manage the
product categories to meet the customer needs and the goals and objectives of the
organization. The main steps in the cycle are:The four key activities, which are considered as
the steps of the cycle, are the following:

1. Category Role – Describe the identified category contribution in the achievement of business
strategy of the retailer. This entails factors like the category sales, profit goals, inventory turns
and other targets for the category among the key issues that need to be addressed.

2. Category review – evaluate the current position of the category as for its volume, value,
necessity, profitability of the category, issues concerning inventory, shoppers, trends, etc.
identify issues and opportunities that can be faced or explored in the category.

3. Category management – Primary, decide on the category strategy and how many of the
factors such as the product category, position on the aisles, special offers, price and the likes
should be achieved.
Establish goals that are relative to the position of the category.

4. Execution – Make sure the category strategy operates expressly in the stores and online. For
instance, new product launches, changes in product range, fair charges, and promotion,
preparing a new buying list and so on.

5. Performance Review – Establish to what extent the formulated strategy is aligned to meeting
the laid down goals. Report on the actual sales, margin, inventory as well as shoppers’ statistics
and compare these data with the set targets for such figures.

It always follows a cycle in order to permit strategy changes based on fresh performance
information that has been acquired.

The stock can be the products which are normally available in a store at some specific period or
the quantity of the stock of the goods which a retailer possesses. Inventory analysis in stock
analysis involves the assessment of the current stock aiming at establish issues to do with
stock. Key metrics assessed include:

- Stock – total quantity of each of the products that is in the store and can be sold to prospective
customers.
- The last one is some turnover rate which is worked out to know the volumetric rate at which
the inventory turns over.
- Demand excess stock-outs, these are those scenarios where consumers have high demand
for a certain product than the available stocks.
- This is a position that does not allow the easy circulation of products since some of the latter
often spend a lot of time in stores before getting sold.

5. There are several methods companies use to determine when and how much stock to
replenish:There are several methods companies use to determine when and how much stock to
replenish:

Fixed Order Quantity – It involves placing an order for a fixed number of units each time the
inventory reaches a given reorder level. This is a very basic method but it may lead to an
unsuitable changes in the amount of inventory.

Economic Order Quantity (EOQ) Model – This part of the business model determines order
quantities that would help reduce overall holding costs and ordering expenses. It leads to
standardized cycles of inventory, as well as standardized service level. The calculation takes
into account various costs include the cost of inventory holding, cost of ordering, demand and
so on.

Just-In-Time Inventory (JIT) – It is a concept that requires an order to be placed with the
supplier just before the current stock is expected to run out. This reduces on the cost of holding
inventories, but the decision making must be very sensitive and adaptable on the side of the
suppliers. Regarding risk, multiple suppliers can help to mitigate it.

Material Resource Planning (MRP) – MRP relies on the BOM together with expected orders and
other information to establish the right material purchase and production sequence of parts
throughout the departments and suppliers. The purpose of inventory management in this
context is to ensure that the required spare parts and materials are received at the right time
and place as per the production planning process.

Inventory control is the unification of cost reduction measures along with the optimization of
inventory. Key components include:

i) Deciding on the right number of inventories that are needed to support activities with less
investment in inventories and their associated holding costs. A safety stock buffer is determined
by the amount of variation in the market and lead time employed in stock production.

ii) Determine the actual amounts of inventory through cycle counting, verifying purchase orders,
monitor transfers and documentation, and ensure that the actual amounts equals the computer
system amounts.

iii) Managing the stock levels and turn rates through data analysis to be able to determine what
exist in the store as dead stock and what is obsolete to free up working capital.

iv) The most effective approach is to engage in constant enhancement of inventory

management activities by performing process mapping, metrics and audits, together with the
utilization of inventory optimization tools that are relevant to financial and customer service
objectives.

v) Communicating with other departments such as the sales department, the financial
department, the warehousing/logistics department, and suppliers to have a mutual
understanding of inventory management strategies and inventory analytics, guaranteeing a
synchronized implementation of the necessary inventory management strategies across the
organization.

6. Warehouse Structure
Warehouses are to store goods, goods flows, size of the shipment, and order picking.
Organization in a warehouse primarily concerns the layout of the warehouse, storage methods,
and the various tools used to move goods. Some common warehouse organizational structures
comprise the reception region, storage and put-away area, storage of spare parts, pick area,
organizing and sortation region, packing zone, and the staging and shipping area.
Well-organized arrangement is beneficial in structuring work and achieving high density in stock.
There are many storage systems namely pallet racking, cantilever racking, drive-in racking, etc,
which provide maximum storage space in terms of cubic storage. Transportation involves
means of product transportation such as conveyors, forklifts, barcode scanners etc. This
highlights the significance of having an appropriate structure of the warehouse, which allows for
effective and efficient processing of the orders.

Importance of Warehouse Information

A Warehouse information system is used to obtain, store, process and retrieve information that
is important in the warehouse operations. It also includes the location of the items, if they are
available or not, how fast they are moving, expiry dates, the preferred method of storage per
SKU, status of orders, priority of orders, packing and shipping information and so on and so
forth Barcode labels and scanners enable the entry of all the crucial product information into the
system efficiently. Consequently, good information helps to locate inventories to control storage,
determine the pick-face slots according to velocity volumes, allocate the putaway areas based
on turnover, and even sort out first-in-first-out inventory flows and wave planning. Accurate
information is critical in tracking and managing inventories, maximizing space, and evaluating
the efficiency of fulfilling orders.

Barcode Scanners
WMS barcode scanners are considered as the effective and mandatory equipment in the
contemporary warehouses and the important component of the warehouse informational
complexes. It is possible to easily and effectively collect the identification data of products using
printed barcodes. These inputs are decoded into item number, description, size, cost, storage
location and any other attribute data. Barcode scanning reduces typing mistakes that a user
may make while inputting data, which may cause a variance in the inventory or a
misunderstanding of the order. Scanners are of two types- portable and fixed position. Industrial
scanners are characterized by their ruggedness and scanning range. 2D imagers may scan
several varieties of bar code symbologies. WMS may be connected through hardwired or
wireless scanners systems in the warehouse. In general, barcode scanners help warehouses to
increase the speed of essential activities such as receiving, put-away, cycle counting, picking,
sorting and packing and shipping.