A Study of Production Management for Warehousing

Abstract

　Warehousing is a contract business to manage the goods, so it is a core business of the logistics along with the transportation industry. Inventory is the original benefit of that business, but at the same time, it is the retention of the goods, so the cost is also a loss through the supply chain. In marketing, carrying cost or carrying cost of inventory refers to the total cost of holding inventory. This includes warehousing costs related to perishability, pilferage, shrinkage and insurance. When there are no transaction costs for shipment, carrying costs are minimized when no excess inventory is held at all, as a Just In Time production system. In this paper, we research the actual stock of the warehouse company of goods from the shipment survey of storage stocks. We focused the dead stock that stores more than six months, and checked order number and the amount. At last, we reported the cost reducing methods of warehousing taking into account the amount of stock.