Distribution Operation

Question 1

Distribution Center

Answer 1

Consolidation point within the supply chain for products from many sources
Holds short inventory positions on a wide variety of SKUs

Question 2

Consolidated Service Center

Answer 2

Typically operated by a IDN (Integrated Delivery Network) - Healthcare
Handles ALL product delivered to the internal customers/departments - Primarily cross-docked

Question 3

Warehouse

Answer 3

Typically operated by manufacturers or importers

Holds long inventory positions on a restricted product line

Question 4

Wholesaler

Answer 4

Usually very service oriented
May have +1,000 customers
Liberal returns policy
Typically uses “temporary” containers

Question 5

IDN

Answer 5

Integrated Delivery Network
Stocks 1,000 to 5,000 SKUs
Handles up to 50,000 SKUs as a cross-dock
Service healthcare hospital department

Question 6

Retailer

Answer 6

Services their own stores
Typically have a maximum of a few hundred customers
May use “permanent” containers
can pish products into stores “promotions, overstock”

Question 7

Healthcare

Answer 7

Order size is typically low
Very high order fill rates
3,000 to 100,000 SKUs

Question 8

Full Pallet

Answer 8

Does not require forward pick locations
Well suited to dedicated locations
Well suited to size codes

Question 9

Full Case

Answer 9

Forward picks or dedicated locations should generally be used
Requires picking containers

Question 10

3PL

Answer 10

3rd Party Logistics

Offers: warehousing, inventory management, order fulfillment, packaging, delivery, returns management

Question 11

4PL

Answer 11

In full control of client’s logistical operations

Question 12

P/O

Answer 12

Purchase Order
Prepared by the purchaser.
Contains the terms and content of the agreement.

Question 13

S/O

Answer 13

Sales Order
Prepared by the seller.
Includes the content of the purchase order.

Question 14

Cross-Docking Distribution Center

Answer 14

acts as a high throughput sorting facility for several suppliers and customers.
Inbound flows are directly transferred into outbound flows.

Question 15

Dynamic Storage

Answer 15

Also known as forward pick.
Section in warehouse in which items are consistently picked for order fulfillment.
Often integrates a pick module.

Question 16

Static Storage

Answer 16

Also known as reserve storage.
Area where the overflow of products is stored, typically on pallets.
Prioritizes density.

Question 17

Block Stacking

Answer 17

Floor storage
Storage of loads on top of each other in stacks placed in lanes on the floor.
Advantage: Easy to implement and very flexible.

Question 18

Selective Pallet Rack

Answer 18

For palletized loads.
Types: single-deep, double-deep, drive-in, drive-through, push-back.
Most common storage type in warehouse.

Question 19

MHE

Answer 19

Material Handling Equipment
Mechanical equipment used for movement, storage, control, and protection of materials, goods and products throughout the process of manufacturing, warehousing and distribution.
Four main categories: mobile, storage, positioning, and unit load formation equipment.