6 Flashcards
Why does Walmart not offer discounts
Fluctuations, leading to bullwhip effect
3 Distribution Types (+ 1 extra)
Direct Shipping
WareHousing
Cross Docking
Lateral Shipment (between facilities)
3 Unit load cross-docking types
Parcel Cross docking definition
Mixed Cross docking
One-touch (truck to truck)
Single-Stage
Two-Stage
Man Conveyor
Hybrid of others (ex. fresh food refrigerated)
2 TYPES OF CROSS-DOCKING OPERATIONS
Pre-Sorted = supplier prepares shipment
Pick-to-Zero = cross dock facility does preparing
3 factors needed for cross docking
Advanced information system
Shared info
Lots of trucks
Cross dock location depends on
Lead time acceptable
Full trucks possible
DOMINANT cost in physical distribution
(focus on the biggest contributor)
Higher Value Products are often dominant in __ cost
Cheap products are usually dominant in ___ cost
- Transport Cost
- Inventory Cost (opportunity cost + risk of not selling)
- Handling Cost
Inventory Cost
Handling Cost
Walmart dominant in __ cost
Transport
Type of warehouse for
Fast Moving Goods
Slow Moving Goods
Regional
National
First Tier vs Second Tier Warehouse
1st tier = large volume, low variety
2nd = low volume, high variety