Warehouse & Logistic

### Relationship

Finance (FIN),Retail (RTL),Procurement (PMN),B2B / Wholesales (B2B),Productions (PRD),Human Captial Management (HCM)

Warehousing is the act of storing goods that will be sold or distributed later. While a small, home-based business might be warehousing products in a spare room, basement, or garage, larger businesses typically own or rent space in a building that is specifically designed for storage.

Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations.

In MonsoonSIM, Warehouse and Logistic are combined, and it is one of the core modules.

MonsoonSIM supports multiple levels of complexity. Learners are encouraged to start with the basic module, called the Baseline model, and slowly progress to more advanced functionalities.

### **Here are some of what you will learn in the MonsoonSIM Warehouse and Logistics (Baseline) :**

* Concept of capacity planning
* Concept of product allocation
* Concept of replenishment
* Concept of automated replenishment
* Concept of fixed and variable delivery cost
* Concept of third party shippers (deliverers)

Note: There is no pre-requisite to learning the MonsoonSIM Baseline concepts

### **In MonsoonSIM, the Warehouse and Logistics module is related to the following department (modules)**

* Finance (FIN)
* Retail (RTL)
* Procurement (PMN)
* B2B / Wholesales (B2B)
* Productions (PRD)
* Human Captial Management (HCM)

Note: There is no pre-requisite to learning the MonsoonSIM Baseline concepts

## **Operating model of MonsoonSIM Warehouse & Logistics module**

### **Baseline:**

* Rent for warehouse is significantly lower than rentals for the retail stores
* Rental terms can be :
	+ Daily
	+ 7-day contract, with auto renew
	+ 30-day contract, with auto renew
* Rental fees per location can also be set to be fluctuating.  The fluctuation can be viewed in  the Forecasting module.
* Learners are encouraged to lock in longer rental contract wshen the rent is low. However, once a contract has been signed, it cannot be changed until your next newly signed contract is in place.
* Warehouse area is initially set at a much higher value than the retail stores
* Players can set automatic replenishment by using minimum stock trigger points and minimum shipment quantity
* The warehouse will be used for the followings:
	+ as storage for finished goods
	+ as storage for raw materials
	+ as storage for production machines
	+ as a place for stocks allocated for shipment or replenishment
	+ as a place where maintenance is performed on the machines
	+ as a place for the entire production process to take place
* All shipment are assumed provided by third-party logistics companies
* No partial shipment supported
* Shipment will commence as soon as the goods are fully allocated
* The delivery time depends on the distance between the source and destination
* The delivery will include both fixed and variable costs
* Delivery costs will be booked as expenses
* The speed of product allocation for shipment will depend on the Staff Index. Hence, it is always good to keep Staff Index at 100%
* Players can analyze the sales performance and other useful intelligence by carefully examining the information from the Business Intelligence explorer