Chapter 10: Warehousing Management

Question 1

Warehousing

Answer 1

stores products at and between points of origin & points of consumption

Question 2

warehousing vs transportation

Answer 2

substitutes for each other, “transportation at zero mph”

Question 3

Role of warehousing

Answer 3

match different rates or volumes of flow with production, if production & consumption =/=. Regrouping products in supply chain

Question 4

Regrouping forms (4)

Answer 4

Accumulating (bulk making), allocating (bulk breaking), assorting, sorting out

Question 5

accumulating

Answer 5

bringing together similar stocks from different sources

Question 6

allocating

Answer 6

breaking larger quantities into smaller quantities

Question 7

assorting

Answer 7

building up a variety of diff. products for resale to customers

Question 8

sorting out

Answer 8

separating products into grades and qualities desired by different target markets

Question 9

warehouses

Answer 9

emphasize the storage of products, primary purpose is to maximize the usage of available storage space

Question 10

distribution centers

Answer 10

emphasize rapid movement of products through the facility, attempt to maximize throughput

Question 11

fulfillment centers

Answer 11

focused on e-commerce orders

Question 12

cross-docking

Answer 12

defined as “process of receiving product and shipping it out the same day or overnight without putting it into storage”. less than 24hours

Question 13

Public warehouses

Answer 13

No capital investment, rent space as needed, location flexibility, specialized services. Lack of control by user

Question 14

Private warehousing

Answer 14

Owned by firm, high fixed costs, only if you have large volumes of inventory, best for retail chain stores, control to owner, needs sufficient demand

Question 15

drawbacks of private warehousing

Answer 15

high fixed cost, high and steady demand volume, less attractive when interest rates are high, reduce organization flexibility

Question 16

Contract warehousing

Answer 16

less costly than private, more costly than public. Allows company to focus on its core competencies. Potentially offers same degree of control as private due to contract specs.

Question 17

multiclient warehousing

Answer 17

mix of contract and public. services more differentiated than public. less customized than contract. one-year min contract