L4M7- Chapter 1- Methods of storage and movement of inventory Flashcards
What is the definition of stock designated as cross dock?
Cross dock is a warehouse location where goods received from suppliers wait for immediate shipment- they are effectively in transit
The term cross docking is the activity of unloading a delivery but immediately preparing it for despatch without it being stored
What is reverse logistics?
Movement of goods from customers back to sellers or manufacturers e.g. returning clothes back to ASOS
It can also be called return logistics- movement of goods in the reverse direction from original supply. Can be because they are faulty or there is some guarantee
What is the difference between a standalone warehouse and an integrated one?
Standalone are not connected to manufacturing, assembly or retail.
Integrated is where on site some materials or products are used or sold to external users
what are the purposes of warehouses/stores?
Make stock available
Maintain a safe work and storage environment
Secure/safe storage
Suitable environment for stock to minimise damage
What factors influence locations of storage?
Cost of location
Availability of buildings
suitability of buildings
Availability of staff
Nature of the product being stored
Access to transport links
What does the acronym COSHH stand for?
Control of substances hazardous to health
How does the frequency of demand influence the layout of a store or warehouse?
Products that are more commonly used should be located close together and easy to quickly access. Note, this does not mean the products are individually high value, but must be used frequently.
Give examples of characteristics required for specific storage requirements
Size, shape, weight, volume, temperature, conditions, environmental consideration, hygiene, legislation and life can be thought about.
Stock may also need to be stored in specific locations or within certain containers. E.g. for movability heavy items may be located on a pallet whereas smaller items within a tote box
What is āflowā within a warehouse?
The ability for stock to be moved quickly and safely around a facility. A poor flow reduces efficiency
What are the 7 trends that can be seen in demand and inventory usage? Hint- all begin with s
Stable- Demand is not falling or rising
Soaring- Demand is rising
Shrinking- Demand is going down
Seasonal- Demand rises and falls cyclically, normally in line with seasons
Surging- Demand sees a temporary and normally steep increase
Sporadic- Infrequent and unpredictable demand
Shutdown- Demand is focussed around events such as a factory shutdown or maintenance period
What can be done in warehouse design to deal with irregular or seasonal demand problems?
Flexibility in the design e.g. layout which allows for seasonal storage
Eliminating unused space or unwanted stock for space (Ocado pickfaces does this with seasonal resting)
Temporarily buying additional storage
Getting suppliers to hold additional stock with short lead times
Getting specialist logistical support
What factors influence the flow design of a warehouse?
What is the warehouse for?
What is being stored?
Where is the warehouse positioned vs customers?
How is space utilised?
Is staging space required?
Which stock is most frequently required?
What key elements are required in the warehouse?
Will stock be processed at the same time?
What is a āthrough flowā layout?
This is a layout designed to work in straight lines. There are many different designs including U shaped and Fan shaped, width of aisles, space utilisation and space flexibility.
What is consignment stocking?
Acquiring stock from a supplier and only paying for that stock when it has been used or sold
What types of codes can be used by organisations for products?
Numerical- all numbers
Alphabetical- All letters
Alpha- numerical- Mixture of numbers and letters
Random generated- Utilisation of random number generators
Sequential- Each item takes the next number in the sequence
Structured- Where different parts of the product code have significance e.g. 121-178 means batch 121, product number 178
What is a check digit?
Numbers added to product codes which allow computer based validation. These are usually created using specific number sequences and are designed to reduce probability of errors
What are product codes specifically for?
Means of identifying an exact product. However, they can also support internal and external systems and allow for better understanding of the attributes of a product e.g. stock availability
