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CHAPTER 1

‘Supply Chain is like nature; it is all around us.’ Everythingsupplychain.com

CHAPTER OVERVIEW

“The Warehouse is a place for everything and everything in its place” is a basic principle
of warehousing. This chapter introduces students to concept of warehousing. The definition of

warehouse, its function in supply chain, the need for a warehouse and different types of warehouse.

MODES OF INSTRUCTION

> LECTURE (2 LECTURES, 3 HOURS TOTAL)
Lecture 1 presents the concept of warehousing, definitions, the evolution of warehousing and key
function of a warehouse.
Lecture 2 describes the importance and need for a warehouse, the various ways of classifying the

warehouses and the broad functions inside the warehouse.

> ASSESSMENT QUESTIONS (0.5 HOUR)
Assessment questions reinforce key unit concepts and skills.
> VIDEO

See video on the Introduction of sub-sectors of Logistics.

LEARNING OBJECTIVES
CONCEPTS
• Definition of the warehouse

• The key functions of the warehouse.
• The importance of the warehouse in Supply Chain
• Various parameters by which we can classify the warehouses. The different types of warehouses
based on the classification.

• The key processes or functions which occur inside the warehouse.

1.1 Introduction

Imagine a world without a Warehouse. Goods will travel directly from Factories to Retail counters. There
will not be any buffer between factory and shops. When a shoe factory is manufacturing a particular design