Chapter 1.1 Flashcards
Define stores
Small, local storage facility for immediate-use items
Define warehouse
Large-scale storage facility - can be ‘stand alone’ or ‘integrated’
Define distribution centres and distribution hubs
Warehouses that are intended to be a focal point for a specific activity for a geographic area
Define cross dock
A warehouse location where goods received from suppliers wait for immediate shipment
Define stockyard
An open area (which may have a canopy or some protection) often used to store bulky stock items, vehicles and appropriate materials
Give an example of a standalone warehouse
Not connected to manufacturing, assembly or retailing
Give an example of an integrated warehouse
On the same site that materials or products are used by or sold to external users
Name 10 things that stores and warehouses may contain
- Raw materials
- Partly processed materials
- Part or fully assembled components
- Spare parts and maintenance items
- Items in transit, cross dock or awaiting delivery instructions from customers
- Items returned from customers or users
- Old, obsolete, dead or quarrantined stock awaiting action or disposal
- Items used as part of processing and manufacturing
- Equipment stored for hire or use by the organisation in various sites
- Items used in marketing, sales, promotions or for other support functions
Name 4 things stockyards are used for
- Bulk loose or packaged materials
- Bulky or oversized items that may be difficult to move inside
- Materials that may require specialised handling, loading and unloading
- Equipment suitable for outside storage, for example, earth-moving machinery
Name 4 purposes of stores and warehouses
- To make stock available to internal and/or external customers in alignment with the stocking decisions of the organisations
- To maintain a safe environment for workers in the stores and warehouses
- To maintain a secure environment to avoid stock losses
- To maintain a suitable environment for stock, minimising losses from damage and deterioration
Name 5 things that store and warehouse managers and staff need to do to fulfil the purpose
- Retrieve, inspect, record and store stock received
- Retrieve, record and release stock to authorised persons, providing documentation and packaging as required
- Report and liaise internally and externally on stock availability, re-ordering and future stock levels
- Minimise stock losses and damages to stock
- Manage and account for returned stock inwards and stock returned to suppliers
Define lead time
The amount of time from placing the order to the goods/services being delivered
Name 2 things you should consider in regards to the supply chain when deciding the volume of stock that is ready for immediate use
- There may be a long delay or long lead time involved in obtaining stock, meaning that larger stock volumes need to be kept
- There may be near-zero stock held as items are available in hours, or overnight
Name 2 impacts of low stock to the supply chain
- Stock is not available at the times of higher than expected demand
- There are delays and additional costs to achieve supply
What do lower stock levels result in?
Lower overall costs to the supply chain
Name 7 types of storage and distribution centres
- Centralised warehouse
- National warehouse
- Regional warehouse
- Local warehouse or stores
- Warehousing in another country
- Outsourced warehousing
- Partnering
Define centralised warehousing
At a single location that can be used to supply a whole country
Define national warehousing
Used to receive and manage goods being imported into the country
Define regional warehousing
Can be used to supply an area of a country
Define local warehousing or stores
Storage at many locations situated close to the users or customers
Define warehousing in another country
Useful when servicing multiple countries
Define outsourced warehousing
Storage may be outsourced to a specialist location
Define partnering
Warehousing can be achieved by partnering with other organisations in the same industry or other industries
Name 5 factors influencing locations of storage
- Cost of location
- Availability and suitability of the building
- Availability and suitability of staff
- Nature of the items to be stored
- Access to transport infrastructure
Name 5 examples of having access to transport infrastructure
- Access to ports and airports for internal transport, import and/or export
- Access to inland waterways
- Access to a good road network
- Closeness to suppliers
- Closeness to customers
What is the impact of not having access to transport infrastructure
Customer service is reduced. Higher costs may be incurred and/or loss of business may result
What is usually the solution when deciding a warehouse location?
Optimisation - best overall result - of multiple factors
Qualitative analysis
Analysis based on opinions and statements (which are often non-quantifiable and referred to as subjective) rather than numerical or statistical evidence
Quantitative analysis
Analysis based on numerical or statistical based information (often referred to as objective) rather than opinions and statements
Inventory
Components, raw materials, work in progress, finished goods and supplies required for the creation of goods and services for the customer. It can also refer to the number of units and/or value of the stock of goods held by a company
What 2 step approach should organisations take when deciding on storage facilities and locations
- First analyse and assess your requirements, facilities and performance
- Future needs are then added based on projections and any change or development of the organisation
Name 3 things involved in a quantitative analysis
- Cost analysis for the current premises and future predictions based on current premises: these costs can be calculated as overall figures
- Cost analysis for routine operations: these are costs which are not premises based
- Current inventory performance measures: these are current measurements and future requirements, such as lead times, service levels, rate of stock turn, stockouts in a given period and stock cover
What data are most storage facility and location decisions based on?
A combination of qualitative and quantitative analysis
Cost of last mile (COLM)
The cost of last mile or cost of final mile (COFM) relates to the disproportional cost of the last mile in a distribution network and the hardest for an operater (eg. Amazon) to overcome
Where can having multiple warehouse locations significantly help organisations?
Where long delivery distances are involved or where transport links and delays are encountered
What 2 things are the number and choice of locations for distribution hubs often based on?
- Fluid demand patterns
- Changing customer locations
What does deciding the optimum number of warehouses in any situation and their locations involve?
A systematic approach where multiple options are considered and evaluated
Name 5 structural features that need to be considered when designing a store or warehouse
- Single floor design/layout
- Multiple floors design/layout
- Light, temperature, humidity and ventilation
- Warehouse equipment requirements
What does a single floor layout mean?
There is no requirement for higher-level access via lifts and stairs. Weight loading issues are far less important provided a suitable solid ground floor is in place
What may a single floor layout allow for?
Full use of the height of the building, subject to appropriate racking and equipment
What do multiple floor layouts allow you to maximise?
The use of the available land and each floor can be allocated different products, creating zones
What 4 things need to be considered in a multiple floor layout?
- Construction of the floors
- Full stock weight loading
- Equipment weight
- Racking weight
What aspect of multiple floor layouts require maintenance
Lifts, conveyors and hoists
Why may some high-volume locations need to duplicate access equipment?
In case of breakdowns which could cause operational delays
Whats a good way to increase the storage density of a building?
Multiple and mezzanine floors
Name 4 implications of multiple and mezzanine floors when it comes to manual handling and movement of goods
- Increased reliance on forklift trucks with the associated requirement for training and licences
- Involvement of lifts which often have onerous legislative requirements relating to usage, loading, capacity and maintenance
- Changes to storage regimes relating to chemicals and flammable items being stored further inside a building
- Use of cranes may have implications on health and safety and licencing conditions
What can natural light reduce the cost of?
Artificial lighting - it can also improve the environmental performance of the building
Name a disadvantage of using natural light
Some stock (particularly low grade plastics) react badly to direct sunlight and degrades with higher levels of UV light and some stock reacts badly to extremes of temperature or may require a specific temperature for storage
What in a warehouse could increase the levels of carbon monoxide and carbon dioxide and other hazardous gases which need to be expelled from the warehouse to maintain a healthy working environment?
Fossil-fuelled forklift trucks and manual handling equipment
Why might heavy-lift cranes require integration within the structure of the building which could affect the design?
Equipment may have safe operating requirements of space limitations
What needs to be considered when getting goods in and out?
The sizing and positioning of both external and internal doors. This often requires the use of automated access doors and/or curtain screening
Docks
A feature of warehouse design - used for unloading and loading vehicles (loading and unloading bays)
Name an advantage of having dual use in and out docks
It increases flexibility as there may be a requirement to have many collections at particular times during the day
What does having sole-use docks ensure?
That a minimum number of docks are available for specific transport
How should goods in and goods out bays be designed?
To allow vehicles to safely position themselves - so the exterior space for manoeuvring becomes important. It also needs to allow for appropriate equipment to load and unload
How is efficient and effective loading and unloading achieved?
By a dock design that places the loading and unloading vehicles rear platform at the same height as the warehouse floor