A major factor in determining the size of a coffee business warehouse is the nature of the firm. The business is involved in making coffee-derived drinks and beverages and operates in a small city section. Its core material is refined coffee products that it imports from Brazilian-based producers. To minimize the costs involved in the importation, the company buys coffee in large quantities three times a year. That being so, and because it is also a fast-growing business, it will require a moderately large warehouse capable of handling such orders.
A typical warehouse features seven key processes. They include receiving, storage, picking, packing, dispatching, returns, and value-adding (Ries, Grosse, & Fichtinger, 2017). However, warehouses are not the same since the products involved and the dynamics of business models differ. For instance, the organization does not receive coffee products for distribution but instead for usage. This means that it eliminates most of the processes above, including picking, packing, dispatching, and value-adding. As such, the company does not require a large operational area for its processes. Once again, a moderately large handling area would be sufficient for its needs.
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The storage and warehousing of coffee require ideal weather conditions defined by humidity and temperature. The coffee bean's optimal temperature bean the organization deals with ranges between 64° and 70°F with reasonable humidity (Yuan, 2018). These conditions define the location of the warehouse. The facility should be located in regions that meet these climatic conditions. Finding such a region would mean the business would have to relocate entirely (Boysen et al., 2019). Because of the complexity and costs involved, the ideal option is to construct the warehouse within the city but incorporate mechanisms for regulating temperature and humidity.
References
Boysen, N., de Koster, R., & Weidinger, F. (2019). Warehousing in the e-commerce era: A survey. European Journal of Operational Research , 277 (2), 396-411.
Ries, J. M., Grosse, E. H., & Fichtinger, J. (2017). Environmental impact of warehousing: a scenario analysis for the United States. International Journal of Production Research , 55 (21), 6485-6499.
Yuan, Q. (2018). Environmental justice in warehousing location: State of the art. Journal of Planning Literature , 33 (3), 287-298.
