L4M7 CHAPTER 1 Flashcards
A logistics company has a 2-story warehouse in the suburban area. The goods receiving area and dispatch area are located on the ground floor only. There is a lift connecting the two floors. The daily operations of the warehouse are quite busy. Which of the following would be the best arrangement for this warehouse?
Pallets, roller cages and other bulky items will be stored on the ground floor, smaller items in plastic tote boxes will be stored on the first floor.
The purposes of a warehouse is to keep the inventories in good condition and to ensure that the operations are smooth. In the scenario, the warehouse has 2 stories, with goods-in and goods-out areas located on the ground floor and a lift connecting the stories. The lift could become a bottleneck if the goods inside the warehouse are not well-arranged.
Since the lift is often small with limited load capacity, putting heavy bulk items on the first floor will cause bottleneck and increase the chance of accidents. Therefore, palletized items (even if they have low-usage) should be placed on the ground floor. Smaller and lighter items should be stored on the first floor.
A supplier delivers large quantities of inventory to its customer’s store, but only charge for the goods as and when they are used. This can be described as…?
Consignment Stock
Consignment stock is stock legally owned by one party, but held by another, meaning that the risk and rewards regarding to the said stock remains with the first party while the second party is responsible for distribution or retail operations. Ownership of consignment stock is passed only when the stock is used (issued or sold in the case of a shop). Unused stock in a warehouse may be returned to the supplier when it concerns standard manufactured products. With customer specific items, agreements concerning returning products, should be negotiated.
ANTA Logistics is looking for a place to build a new, integrated cold chain facility, “Chill Hub”, to its customers. Which of the following need to be considered when selecting the location of the new facility?
Accessibility to roads and highways
Availability of the building
There are many different factors that must be considered when assessing warehouse and stock locations:
- Operating cost of the location or area
- Availability and suitability of warehouses
- Availability of manpower or labour
- Proximity to suppliers and customers
- Access to transport infrastructure (domestic and international)
- The political and security environment of the location
Bulk loose coal that requires a massive handling system should be stored in which area?
Stockyard
Materials that will not easily deteriorate, are generally stored in open or fairly covered areas (stockyard). The materials are usually in bulk, like steel plates or coils casting, timber coal, steel barrels, cable drums, piping, lampposts, lorries, etc.
Stockyards are open or semi-covered areas that are used for the following:
- Bulk loose or packaged materials
- Bulky or oversized items that may be difficult to move inside
- Materials that may require specialized handling, loading or unloading
Can RFID tags work when they are attached to metal surfaces or embedded within metal products?
Yes, some technologies allow RFID tags to work on metal or within metal products
Mounting or embedding RFID tags on metal can be tricky. Metal surfaces reflect energy emitted from RFID readers and create interference for RFID tag antennas, which means the tag isn’t able to receive power and transmit information; however, specific RFID tags will work around metal surfaces. RFID companies have patented technology that allows RFID to work when attached to metal surfaces and even embedded within metal products. As long as you choose the correct RFID equipment for your environment and application, you won’t need to worry about interference from metal.
Do all types of warehouses require access to daylight to reduce the cost of electricity?
No, because some types of stock are sensitive to sunlight.
The design of a building should consider the advantages of natural light as this can reduce the cost of artificial lighting and improve the environmental performance of the building. Daylight entering the building can also help reduce heating costs. Unfortunately some stocks react badly to direct sunlight, and some stock reacts badly to extreme temperature or may require a specific temperature for storage. Some stock may require a warmer temperature than the ambient temperature and other stocks may require cooler temperature. For example, fabric and garment are sensitive to direct sunlight as ultraviolet light catalyses a reaction between the water present in all fabrics and atmospheric oxygen to create hydrogen peroxide. This is a bleaching agent which breaks down the chemical bonds that give dyes their colour.
International Standard Book Number (ISBN) is a unique international identification system for each product formed or edition of a monographic publication published or produced by a specific publisher. ISBN is an example of…?
Industry standard code.
The International Standard Book Number (ISBN) is a numeric commercial book identifier which is intended to be unique. Publishers purchase ISBNs from an affiliate of the International ISBN Agency. ISBN is standardized by ISO 2108:2017. ISBN is an example of industry standard code as it applies to commercial books around the world.
Check digits are additional numbers or characters added to codes that a computer uses to verify the number is valid. The intention is to reduce the likelihood of mis-keying an item and hitting an alternative live item. More often, a system is devised which a computer can calculate using combination of numbers.
Own product code system: an organization will use its own product code system. This has the advantage that the organization can construct a code that is effective and fits with its software and variety of items covered.
The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products. It came into effect in 1988 and has since been developed and maintained by the World Customs Organization (WCO) (formerly the Customs Co-operation Council), an independent intergovernmental organization based in Brussels, Belgium, with over 200 member countries.
The practice of unloading goods from inbound delivery vehicles and loading them directly onto outbound vehicles is known as …?
Cross-docking
Cross-docking is the practice of unloading goods from inbound delivery vehicles and loading them directly onto outbound vehicles. By eliminating or minimizing warehouse storage costs, space requirements and inventory handling, cross-docking can streamline supply chains and help them move goods to market faster and more efficiently.
Cross-docking usually takes place in a dedicated docking terminal in a warehouse, where inbound goods are first received at a dock and sorted according to their final destinations. They are then moved to the other side of the dock via forklift, conveyor belt or other equipment and loaded on outbound vehicles.
Cross-docking works best with products that need to be transported quickly, such as food, that have already been sorted and labeled for customers, and do not need quality inspections or have steady demand.
The minimal total cost is always achieved when there is only one warehouse. Is this statement true?
No, fewer warehouse may lead to increasing transport costs.
The total cost of storage consists of two different costs:
- The cost of warehouses: each one has a different cost, and each has the cost of stock-holding and stock management included
- The transport costs: the total transport cost reduces as further warehouses mean shorter final delivery to the customers.
Depending on each situation, the optimal number of warehouses varies. Generally, more facilities will increase the cost of warehouses while reduce the transport costs and vice versa.
The width of aisles within a warehouse is determined by…?
The turning cycle of the forklift and the size of the pallets.
Start with the basic right-angle stacking width
Add the load length
Add 12 inches for clearance
The basic right-angle stacking width is the smallest amount of space a forklift needs turn in order to insert its forks into a pallet. You can find basic right-angle stack measurements in the equipment manual or by contacting TMHNC if your business is located in Northern California. This measurement does not include the length of the load or room need for clearance.
Load lengths vary depending on your application, products, etc. As a starting point, a standard pallet has a 48-inch load length. Always check your forklift’s data plate for the rated capacity (which is affected by attachments and other factors).
Adding 12 inches for clearance ensures you have enough room for your forklift’s turn radius and helps protect against damage from operator error and/or product that may hang over the edge of the pallet.
To improve the security of a warehouse, alarm systems are commonly used. Which of the following is an important part of these systems?
Sensors
The most basic alarm consists of one or more sensors to detect intruders, and an alerting device to indicate the intrusion. However, a typical premises security alarm employs the following components:
Premises control unit (PCU), Alarm Control Panel (ACP), or simply panel: The “brain” of the system, it reads sensor inputs, tracks arm/disarm status, and signals intrusions. In modern system, this is typically one or more computer circuit boards inside a metal enclosure, along with a power supply.
Sensors: Devices which detect intrusions. Sensors may be placed at the perimeter of the protected area, within it, or both. Sensors can detect intruders by a variety of methods, such as monitoring doors and windows for opening, or by monitoring unoccupied interiors for motions, sound, vibration, or other disturbances.
Alerting devices: These indicate an alarm condition. Most commonly, these are bells, sirens, and/or flashing lights. Alerting devices serve the dual purposes of warning occupants of intrusion, and potentially scaring off burglars. These devices may also be used to warn occupants of a fire or smoke condition.
Keypads: Small devices, typically wall-mounted, which function as the human-machine interface to the system. In addition to buttons, keypads typically feature indicator lights, a small multi-character display, or both etc.
Interconnections between components. This may consist of direct wiring to the control unit, or wireless links with local power supplies.
In addition to the system itself, security alarms are often coupled with a monitoring service. In the event of an alarm, the premises control unit contacts a central monitoring station. Operators at the station see the signal and take appropriate action, such as contacting property owners, notifying police, or dispatching private security forces. Such signals may be transmitted via dedicated alarm circuits, telephone lines, or the internet.
To make loading/unloading more effective and efficient, which feature should be included in a vehicle dock design?
A dock platform that is almost at the same level as the height of the trailer’s rear platform.
A warehouse dock is a feature of warehouse design - used for unloading and loading vehicles. It is crucial to carefully design where they are externally located in a facility and choose the best type of dock depending on the available space.
In many cases efficient and effective loading and unloading is achieved by a dock design that places the loading and unloading vehicle’ rear platform at the same height as the warehouse floor.
Slopes in docking areas must always be as small as possible: the gentler the slope, the less chance of errors and accidents. If a warehouse is going to be used by large volume vehicles, such as high cubes, it may be necessary to install special devices, such as hydraulically adjustable docks or ground level lift platforms.
Current trends indicate that vehicles that are longer and wider and have a greater volume will be increasingly common. Therefore, when planning the location of the docks, it would be useful to ensure that there is a large area for the approach, maneuvering and build-up of large vehicles.
One option to increase the efficiency of the docks is to combine reception and dispatch into a single area (dual use). This solution drastically reduces costs and, above all, increases the use of handling equipment and personnel. However, if this is justified by the volume of material flows, there can also be separate access points for each function (some for reception and others for dispatch - ‘sole use’).
U-shape flow layout can utilize handling equipment if the high demands items are located adjacent to the shipping docks. Is this statement true?
Yes, because this layout places receiving docks and dispatch docks close to one another.
A ‘U’ flow occurs when the goods receipt and dispatch functions are located at the same end of a warehouse building.
Products flow in at receiving, move in to storage in the back of the warehouse, and then to shipping, which is located adjacent to receiving on the same side of the building.
Items with higher throughput level are located closer to the loading bays.
Advantages of ‘U’ Flow
Excellent utilization of dock resources because the receiving and shipping processes can share dock doors
Facilitating cross-docking because the receiving and shipping docks are adjacent to one another and may be co-mingled
Excellent lift truck utilization because put away and retrieval trips are easily combined and because the storage locations closest to the receiving and shipping docks are natural locations to house fast moving items
Yields excellent security because there is a single side of the building used for entry and exit
When deciding on the storage facilities and locations, an organization needs to assess the current situation comprehensively and forecast the future demands. Quantitative analysis is the best method for these activities. Is this statement true?
No, some tangible information is difficult to collect and measure.
Decisions regarding stores and warehouse locations involve a complex range of issues that are unique to each business. Most storage facilities and location decisions are based on a combination of qualitative and quantitative analysis.
Qualitative analysis uses subjective judgment to analyze a situation based on non-quantifiable information, such as potential markets for new products, forecast on possible risks that may happen, etc.
Quantitative analysis (QA) is a technique that uses mathematical and statistical modeling, measurement, and research to understand behavior. Quantitative analysts represent a given reality in terms of a numerical value. This may include the following:
Cost analysis for the current premises and future predictions based on current premises
Cost analysis for routine operations
Current inventory performance measures: lead times, service levels, rate of stock turn, stock-outs in a given period and stock cover
To get a big picture of the current situation and future demands, organization should combine both qualitative and quantitative methods so that useful information is achieved and well-informed decisions are made.
Which component of an RFID device is responsible for sending and receiving radio waves?
Antenna
RFID tags are made of three different components: an RFID chip, which is an integrated circuit (IC), an antenna, and a substrate. RFID Antennas are necessary elements in an RFID system because they convert the RFID reader’s signal into RF waves that can be picked up by RFID tags. Without some type of RFID antenna, whether integrated or stand-alone, the RFID reader cannot properly send and receive signals to RFID tags.
Which of the following allows an organisation to have more flexible space for storage by leveraging the facilities of other parties?
Temporary warehousing and Consignment stocking
Temporary warehousing (or ‘Very short-term warehousing’) is offered in the market where organisation makes their requirements for space open online to offers or bids for available space. This appears to be an emerging market and service providers in the UK and USA typically quote a price per pallet per week with some also requiring a ‘transaction fee’ for movements of each pallet in and out.
Consignment stocking is a facility offered by a supplier to a buyer to allow a delivery of stock to the buyer with payment only after it is used or sold to a customer.
Double-deep pallet racking and carousel-style storage are two tools that leverage space within a warehouse.