NIOS Class 10 Logistics & Supply Chain Management Chapter 6 Logistics Management its Sub-Sector Solutions to each chapter is provided in the list so that you can easily browse through different chapters NIOS Class 10 Logistics & Supply Chain Management Chapter 6 Logistics Management its Sub-Sector and select need one. NIOS Class 10 Logistics & Supply Chain Management Chapter 6 Logistics Management its Sub-Sector Question Answers Download PDF. NIOS Study Material of Class 10 Logistics & Supply Chain Management Notes Paper 258.
NIOS Class 10 Logistics & Supply Chain Management Chapter 6 Logistics Management its Sub-Sector
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Logistics Management its Sub-Sector
Chapter: 6
INTEXT QUESTIONS 6.1
1. A __________ is a huge building where manufactured goods or raw materials are stored until they are distributed to shops to be sold or exported to other countries.
Ans: Warehouse.
2. Warehousing is the process of storing __________ inventory for sale or distribution.
Ans: Physical.
3. __________ is an essential part of the supply chain for most types of businesses that deal in physical goods.
Ans: Warehousing.
4. When products arrive at the warehouse, staff will need to receive the items and carefully move them to a __________ area for processing.
Ans: Staging.
5. After products have been received and processed, they need to be_____________.
Ans: Stored.
INTEXT QUESTIONS 6.2
1. A warehouse allows companies to store their products for a future date when the __________ is high.
Ans: Demand.
2. Warehousing provides secured storage of __________ products.
Ans: Perishable.
3. Majority of the online customers would pay more for __________delivery.
Ans: Speedier.
4. Food, plants, candles, artwork, and medications are few examples of products that require __________ storage.
Ans: cold.
5. The goods stored in warehouses are usually __________.
Ans: Insured.
INTEXT QUESTIONS 6.3
1. Warehouses play a vital role in the process of __________ stabilisation.
Ans: price.
2. When the products are stored in warehouses they are subjected to various risks in the form of _________.
(A) deterioration.
(B) theft.
(C) fire.
(D) All of the above.
Ans: (D) All of the above.
3. For any damage or loss sustained by goods, __________ will be liable to the owner of the goods.
Ans: Warehouse keeper.
4. Banks and financial institutions provide advance loans against __________receipts.
Ans: Warehouse.
INTEXT QUESTIONS 6.4
1. A distribution centre provides many services than a _______.
Ans: Warehouse.
2. __________ warehouses employ technology to decrease errors, increase production, and minimise the number of human resources required to run the warehouse.
Ans: Smart.
3. __________ storage stores temperature sensitive products at low temperatures.
Ans: Cold.
4. Cold storage warehouses use __________ shipping for all inbound and outbound shipping.
Ans: Refrigerated.
5. __________ warehousing links businesses with a demand for warehouse space with warehouses which have excess space.
Ans: On-demand.
INTEXT QUESTIONS 6.5
1. Warehouses support manufacturers to produce products in anticipation of __________ demand.
Ans: Future.
2. Products are often manufactured in anticipation of demand and required to be preserved appropriately until they are demanded by the __________.
Ans: Consumers.
3. In case of damage or loss of the products, the owner of products will get complete compensation from the __________.
Ans: Insurance company.
4. A modern warehouse offers facilities for __________.
(A) Blending.
(B) Grading.
(C) Packing.
(D) All of the above.
Ans: (D) All of the above.
5. By holding the imported products in a ________ . warehouse, an importer can pay customs duty in instalments.
Ans: Bonded.
| TERMINAL EXERCISE |
1. Define Warehouse.
Ans: A warehouse is a huge building where manufactured goods or raw materials are stored until they are distributed to shops to be sold or exported to other countries. A warehouse is a larger building, functioning as a storage facility for a chain of shops, or as an independent wholesale business.
2. Write down the importance of warehouses.
Ans: The importance of warehouses are:
(i) Better Inventory Management: Nearly 8 % of small businesses do not track their inventory, 24% do not have inventory at all. This regularly leads to delay in shipments, late order processing and bad customer experience. Warehouses offer a centralised place for the goods, making it simpler to track and manage.the inventory. By investing in warehouses, we can store, ship, and distribute goods much more efficiently. If products are out of stock, we will know it right away and offer consumers alternative choices rather than waiting for days or Weeks.
(ii) More Efficient Packing and Processing: Warehouses support businesses to store, move, package and process orders from consumers. Loading docks, Pallet racks, and packing materials are a few to mention. This way, we will have all in one place, which will save money and time. A warehouse facilitates businesses to pack and grade their products according to legal requirements and consumer needs. The logistical cost is lowered, while flexibility is increased. This kind of facility can be a perfect distribution location, get rid of the need to organise for pickup and hire staff to manage fulfilment.
(iii) Superior Customer Service: Most online customers expect to know the guaranteed or estimated delivery time. Majority of the online customers would pay more for speedier delivery. Essentially, delivery speed is one of the first aspects buyers take into consideration when selecting a shipping carrier.
Business owners want to keep their customers satisfied and engaged. If they fail to send their orders on time, their reputation will suffer. This can affect their revenue and brand image. Warehousing enables on time delivery and optimised distribution, leading to improved labour productivity and better customer satisfaction. It helps in reducing errors and damage in the process of order fulfilment. Plus, it prevents products from getting stolen or lost during handling.
(iv) Ensure Price Stabilisation: The demand for goods and services differs from year to year and month to month, depending on consumers’ income, employment rates, government policies, climatic conditions, and other factors. A warehouse allows companies to store their products for a future date when the demand is high. This facilitates price stabilisation and lowers revenue losses.
(v) Improved Risk Management: Warehousing provides secured storage of perishable products. Depending on
needs and type of business, companies can lease a warehouse equipped with freezers, refrigerators, and ideal temperature control.Food, plants, candles, artwork, and medications are few examples of products that require cold storage. A warehouse that provides this service will store goods at appropriate temperature, preventing changes in colour and texture and spoilage. In addition, it helps in extending the product’s shelf life and ensures customer satisfaction. Furthermore, the goods stored in warehouses are usually insured. These goods have more chances to receive compensation from insurance companies in case of fire, theft, or damage.
3. What are the types of Warehouses?
Ans: The types of Warehouses are:
(i) Distribution Centre: Most people confuse warehouse with distribution centre and the terms are used interchangeably. However, a warehouse may hold goods for a long period of time, a distribution centre holds goods for a short time period sees higher velocity of goods coming in and going out. Distribution centres are customer-centric and are located close to where the end user is, thus they receive products faster and in good shape. A distribution centre also provides value added services, such as pick and pack services, cross docking, or simple product mixing or packaging. A distribution centre provides many services than a warehouse; they are also equipped with more advanced technology to ease the processes happening within.
(ii) Smart Warehouse: A smart warehouse uses interconnected technologies and automation systems to receive goods, put away, picking, shipping, and to keep an accurate inventory count. Smart warehouses employ technology to decrease errors, increase production, and minimise the number of human resources required to run the warehouse.
(iii) Pick, Pack, & Ship Warehouse: In a warehouse, picking, packing, and shipping are the process that happens after an order is received, either from a brick-and-mortar store or an online store. The warehouse receives a pick list of goods, and automated systems or people find the products within the warehouse. Then, the products are packed, labelled, and shipped to the consumer.
(iv) Cold Storage: Cold storage stores temperature sensitive products at low temperatures. Cold storage warehouses allow perishable foods, medicine, cosmetics, plants, candles, and artworks to have longer lives. Cold storage warehouses use refrigerated shipping for all inbound and outbound shipping.
(v) Bonded Warehouse: On-Demand Storage: A budding trend in warehousing is on demand storage. On-demand warehousing links businesses with a demand for warehouse space (seasonal, temporary, or to handle sales spikes) with warehouses which have excess space. Bonded Warehouse Bonded warehouses are also called “customs” warehouses. A bonded warehouse is a building where imported goods are manipulated, stored, or undergo manufacturing operations without duty payment for five years from date of acceptance. The duty on imported products can be very high. Hence, the a bonded warehouse allows the goods to be sold first, and later duty is paid from the proceeds of the sale.
4. What is a bonded warehouse?
Ans: A bonded warehouse is a building where imported goods are manipulated, stored, or undergo manufacturing operations without duty payment for five years from date of acceptance. The duty on imported products can be very high. Hence, the bonded warehouse allows the goods to be sold first, and later duty is paid from the proceeds of the sale.
5. What are the functions of Warehouse?
Ans: The functions of Warehouse are:
(i) Storage: This is the main function of warehousing. Surplus products which are not needed instantly can be stored in warehouses. They can be delivered as and when required by the consumers.
(ii) Price Stabilisation: Warehouses play a vital role in the process of price stabilisation. It is attained by the creation of time utility by warehousing. Drop in the prices of products when their supply is in large quantities and increases in their prices during the slow season are avoided.
(iii) Risk Bearing: When the products are stored in warehouses they are subjected to various risks in the form of deterioration, theft, exploration, fire etc. Warehouses are built in such a way as to reduce these risks. Contract of bailment functions when the products are stored in warehouses. warehouse keeper must take the sensible care of the products and safeguard warehouse keeper must take the sensible care of the products and safeguard goods, the warehouse keeper will be liable to the owner of the goods.
(iv) Financing: Loans shall be raised from the warehouse keeper against the products stored by the owner. Products act as security for the warehouse keeper. Also, banks and financial institutions provide advance loans against warehouse receipts. In this way, warehousing acts as a source of finance for the companies for meeting business operations.
(v) Financing: Loans shall be raised from the warehouse keeper against the products stored by the owner. Products act as security for the warehouse keeper. Also, banks and financial institutions provide advance loans against warehouse receipts. In this way, warehousing acts as a source of finance for the companies for meeting business operations.
(vi) Grading and Packing: Warehouses currently provide the facilities of processing, packing, and grading of products. Products can be packed in suitable sizes as per the directions of the owner.
6. What are the different forms of risk in a warehouse?
Ans: The different forms of risk in a warehouse are:
(i) Safety Risk: Slips, trips, and falls: Slips, trips, and falls are the most common hazards in a warehouse. Ensure that walkways and floors are clean and dry, and clearly mark any hazardous areas with warning signs or paint. Provide anti-slip footwear and use slip-resistant mats to prevent slips and trips.
(ii) Security Risks: Warehouses are vulnerable to theft, vandalism, and unauthorised access. Lack of proper security measures such as surveillance cameras, access controls, and perimeter fencing can expose goods to the risk of theft or damage.
(iii) Inventory Management Risks: Inventory risk encompasses uncertainties tied to managing inventory: stockouts causing lost sales, overstocking leading to financial losses, storage expenses, demand fluctuations, and supply chain disruptions.
(iv) Equipment Failure: Malfunctioning or breakdown of warehouse equipment such as forklifts, conveyors, and pallet racks can disrupt operations and pose safety risks to workers. Inadequate maintenance, ageing equipment, and lack of backup systems increase the likelihood of equipment failure.
7. List out the benefits of Warehousing.
Ans: The benefits of Warehousing are:
(i) Regular Production: Raw materials must be stored to facilitate mass production to be carried on uninterruptedly Occasionally, products are stored in expectation of a rise in prices. Warehouses support manufacturers to produce products in anticipation of future demand.
(ii) Time Utility: A warehouse generates time utility by bringing the time gap in the production and consumption of products. It supports making available the products each time demanded or required by the consumers. Some products are manufactured throughout the year, but its demand will be only in particular seasons, e.g., raincoat, wool, heater, umbrella, etc. by the same time, some products have demand throughout the year, but they are manufactured in certain region, e.g., rice, wheat, potatoes, etc. Goods like tobacco, rice, jaggery and liquor become valuable with the passage of time.
(iii) Store of Surplus Goods: A warehouse acts as a store of surplus products which are not required immediately. Products are often manufactured in anticipation of demand and required to be preserved appropriately until they are demanded by the consumers. Products which are not needed immediately can be stored in a warehouse to meet the future demand.
(iv) Price Stabilisation: Warehouses bring down violent fluctuations in prices by storing products when their supply exceeds demand and by issuing them when the demand is more than immediate production. Warehouses confirm a regular supply of products in the market. This pairing of supply with demand helps to stabilise prices.
(v) Minimization of Risk: Warehouses bring down violent fluctuations in prices by storing products when their supply exceeds demand and by issuing them when the demand is more than immediate production. Warehouses confirm a regular supply of products in the market. This pairing of supply with demand helps to stabilise prices.
(vi) Packing and Grading: Certain items must be processed or conditioned to make them fit for human use, e.g., tobacco, coffee, etc. A modern warehouse offers facilities for blending, processing, grading, packing, etc., of the products for the purpose of sale. The prospective purchasers can inspect the products kept in a ware-house.
(vii) Financing: Warehouses offer a receipt to the owner of products for the products kept in the warehouse. The owner may borrow against the security of goods by producing an endorsement on the warehouse receipt. In a few countries, warehouse organisations advance cash against the products deposited in the warehouse. By holding the imported products in a bonded warehouse, an importer can pay customs duty in instalments.
8. How does warehouse support in reducing risk in business?
Ans: A proper risk management strategy ought to reduce isolated accidents by making the workers go through compulsory employee security programmes while joining, familiarising them to use the equipment in a safe manner, and making sure that day-to-day safety standards in the warehouse are met.
