Exam 2: Ch 8 Flashcards
Why logistics is critical
- impacts on cost, flexibility, and delivery performance
- advances in information systems
- globalization of markets
push toward sustainability
Truckload (TL)
move full truckloads
- solo
- team
Less-Than-Truckload (LTL)
move pallet quatities
Water travel
- ideal for materials which high weight to value ratio, especially if delivery speed is not critical
- one of the lowest ton-mile rates of any mode
- move full container quanitites
Vessel Routes
Called “strings”
Air travel
- Ideal for customers with a low weight-to-value ratio, especially if delivery speed or delivery reliability is critical
- kidneys, electronics,
- move single box quanities
Forwarders
buy space on flights and sell to suppliers to ship their goods
- middleman
LD3
1/2 WIDTH OF AIRPLANE
LD7
FULL WIDTH OF AIRPLANE
Rail travel
- decreased transit variability
- doubled number of lines along busy areas
- move full container quantities
Factors affecting transit times
Highway (truck)
- weather
- locations of crossdocks
Water
- dependent on number of ports of call
Air
- proximity of airport pickup and drop off location
Rail
- dependent on number of stops and train switches required
**all modes affected by CAPACITY
Warehousing
any operation that stores, repackages, stages, sorts, or centralizes goods or materials.
Consolidation warehousing
pulls together shipments from a number of sources in the same geographic are and combines them into larger more economical loads
Cross-docking
large economical shipments in – small flexible shipments out, breaks bulk from a single source
hub and spoke systems
facilities to sort at high traffic locations