Chapter 1 - Definitions

Question 1

A warehouse location where goods received from suppliers wait for immediate shipment.

Answer 1

Cross dock

Question 2

Relates to the disproportional cost of the last mile in a distribution network and the hardest for an operator - e.g. Amazon to overcome.

Answer 2

Cost of Last Mile

Question 3

A feature of warehouse design - used for unloading and loading vehicles.

Answer 3

Dock

Question 4

An arrangement in a stockyard, warehouse or stores facility where areas are determined based on requirements for different access, or the characteristics of different types of equipment or stock.

Answer 4

Zoning

Question 5

COSHH

Answer 5

Control of Substances Hazardous to Health

Question 6

An area in the warehouse where multiple elements of a delivery are stored until the shipment is complete and can be shipped as one consignment.

Answer 6

Order Accumulation Bay

Question 7

Activity in a warehouse or stockyard where a delivery is unloaded but then prepared for despatch without being stored. In some cases, a vehicle may be awaiting loading.

Answer 7

Cross-docking

Question 8

Reusable storage box. These can be open or have lids or flaps to close them and come in a large variety of sizes and weight loadings.

Answer 8

Tote box

Question 9

Platform structures designed to support a load and be lifted using the forks typically seen on forklift trucks and other equipment.

Answer 9

Pallets

Question 10

A robust pallet sometimes made of steel or very heavy duty plastic with caged sides. This can improve the retention of the contents and increase stacking potential.

Answer 10

Stillages

Question 11

Container for stock, which is usually cylindrical and can be made from a variety of materials. Contents are usually loose materials or liquids.

Answer 11

Drum or Reels

Question 12

Trends - 7S

Stable…
Soaring…
Shrinking…
Seasonal…
Surging…
Sporadic…
Shutdown….

Answer 12

Stable - demand is not rising or falling
Soaring - demand is rising
Shrinking - demand is falling
Seasonal - demand rises and falls cyclically, normally in line with seasons.
Surging - demand sees a temporary and normally steep increase which falls back later.
Sporadic - demand is infrequent and unpredictable.
Shutdown - demand is focused around events such as factory shutdown, maintenance period.

Question 13

A floor area typically inserted in a high-roofed building to create an elevated additional working or storage space.

Answer 13

Mezzanine Floor

Question 14

Area set aside for items which are awaiting inspection or testing. There may also be faulty items or items awaiting return to the supplier. The idea is that these items must not enter storage or be made available until cleared for use.

Answer 14

Quarantine Area

Question 15

Activity in a warehouse or store of assembling groups of items that are to be used together and is created for specific task.

Answer 15

Kitting

Question 16

The storage, handling or movement of materials or products in the reverse direction of the orginal supply.

Answer 16

Return Logistics

Question 17

Spare capacity or special options which can be applied in periods of excessive demand.

Answer 17

Surge Capacity

Question 18

Term used to describe any technique which allows the short-term ability to increase or decrease storage space.

Answer 18

Flexible warehousing

Question 19

A technique of acquiring stock from a supplier and only paying when sold or used rather than paying following a trade credit period.

Answer 19

Consignment stocking

Question 20

An identifiable item from stock. Organisations may assign individual numbers of their own design or use industry or company standard numbers.

Answer 20

Stock Keeping Unit (SKU)

Question 21

Numbers added to product codes which allow computer based validation. These are usually created using specific number sequences and are designed to reduce the probability of errors.

Answer 21

Check Digits

Question 22

Generally perceived as the producer of own branded parts or equipment which are sold to other manufacturers for production and retail.

Answer 22

Original Equipment Manufacturer

Question 23

A matrix-orientated barcode which holds more information and is less prone to errors that a traditional barcode.

Answer 23

QE Code (Quick Response)

Question 24

An accounting term used to describe items acquired by an organisation which are not routinely sold but used within the organisation.

Answer 24

Fixed Assets

Question 25

A wireless method of communication that uses digital tags to identify and track goods by means of tags that transmit a radio signal.

Answer 25

RFID Radio Frequency Identification

Question 26

A storage facility usually smaller that the organisations main warehouse, that is geographically sites to serve a specific area.

Answer 26

Distribution centre

Question 27

A term used to describe the grouping of different items into a convenient stack or stacks which make them easy to handle and store. Typically this involves pallets.

Answer 27

Unit Load

Question 28

A form that provides multiple logistics services for use by customers including transportation.

Answer 28

Third party logistic provider

Question 29

A document or electronic entry recording that goods have been received by an organisation.

Answer 29

Goods Received Note (GRN)