2.1 Warehouse Operations and Risk Management in
Manufacturing Industry
According to Gu et al. (2007), the warehouse serves as a
buffer of material flow in a supply chain to accommodate
variability such as product seasonality and consolidating
goods from the suppliers to customers. In the manufacturing
industry, the warehouse activities are divided into four
processes, which are receiving, storage, order-picking and
shipping. As the warehouse operations are complicated,
involving the activities of resource allocation, inventory
control, picking and delivery arrangement, warehouse