LECTURE 5 - part 1 Flashcards
Bulk materials (definition)
materials that are stored by weight or volume
Discrete or component materials (definition)
materials that are stored by number of units
Stock keeping units (definition)
the number of different types of products kept on stock
Slow movers in warehouse (definition)
goods that have a low sales speed, they usually remain in the warehouse for a longer time
Fast movers in warehouse (definition)
goods that spend little time within a warehouse and quickly leave it again
Pareto principle (meaning)
means that 80 percent of the effects of anything come from 20 percent of the causes. ABC inventory analysis is based on the pareto principle
Class A items
are the fast movers, 20% of the products that account for 80% of the sales
Class B and C items
are called the long tail, are considered slow movers
When does Pareto not work? (4)
- When demand is random
- When goods must be handled FIFO
- When there is a high peak seasonal demand
- In an I form warehouse
Special Distribution Center forms (3)
- Consolidation warehousing
- Postponement warehousing
- Bonded warehousing
Postponement warehousing (definition)
deliberate action to delay final manufacturing or distribution of a product until receipt of a customer order.
Bonded warehousing (definition)
Bonded warehouse is a secure space in which goods liable to import duty and VAT are stored. Custom duty and VAT payments are deferred until the godos are sold or removed from the warehouse
Cellular layout
type of layout where machines are grouped according to the process requirements for a set of similar items that require similar processing
Process layout
there is an assembly of similar operations or similar machinery in each department
Computer-aided design (CAD) & Computer-aided manufacturing (CAM) (definition)
CAD and CAM software is used to design and manufacture prototypes, finished products, and production runs of products
