Travel by air It is not very convenient to travel by air. First, it is stressful to pack and make sure that you have done everything correctly in order to get through airport security. There are many rules and regulations that travelers must follow. We need to arrive at the airport very early to get through security and make it to your gate on time. On top of that, the Air in airplanes is often very dry so I also need to use plenty of moisturizing lotion. Despite of /Regardless of these inconveniences, Air travel is the fastest way to travel over long distances. For short distances travel in domestic, I prefer to travel by the high speed train, which is very comfortable. If I travel abroad, I will have to travel by air.

Capacity introduction -W The introduction contains 3 parts. To start with, we will take a look of the overview. What is capacity and why we need to manage capacity. Later/Also/on top of that, we will go through how to manage capacity including planning process and daily management. Why manage capacity. The goal of capacity management is to fulfill various capacity requirements in the cost effective ways. Firstly, we need to ensure there is enough space or capacity for inventory, otherwise we cannot receive the arriving commodities thus we cannot deliver orders to customers in time. This is against our customer centric principle. What’s more, the cost of capacity is almost the most expensive part of the fulfillment cost. The table below shows that in China, the fixed cost is around XX times of variable cost and accounts for XX% of total fulfillment cost. I also saw some data of XX. The proportion of fixed cost is higher than that in China, that is, more than XX% of the total fulfillment cost. Fixed cost is mainly about rental. So you could guess the most effective cost down actions. The more we optimize the capacity, the less space we use, the lower cost we will get.

Capacity introduction -Planning Based on input from retail team, XX team provides forecast of national monthly Inbound units, ship units and inventory units. With considering a lot of parameters including average cube per unit, ship ratio of different site etc, we will get weekly inventory cube and throughput on site level. Combined with average cube per bay, ratio of different bin type & target utilization, we could get the required bay type & quantities for storage capacity and required working stations for operation capacity. With data of required bay count and station, we could get the estimated footprint.

Capacity introduction 1 When we talk about capacity, we refer to 2 things. First is storage capacity and 2nd is operation capacity. In this session we will focus more on storage part. The purpose of capacity management is to meet capacity requirement in cost effective or optimized way. It is the practice of planning, executing & monitoring.