Lecture 8 Flashcards
Why do different business areas need different storage strategies?
Every market has its own characteristics.
Different businesses have different requirements (e.g. Apparel vs Electronics vs Food)
They also have differing supply chain structures (Retail, E-Commerce, Food-service)
Levels of automation also vary (Low - System - Mechanized - Sophisticated)
Explain the retail chain.
The principle model of the supply chain in the retail sector.
Component Supplier (1 Tier) –> Supplier –> Retailer DC –> Store –> Consumer
Describe the different levels of automation.
1. Low automation › Specific scanners › Applications › Printed papers 2. System automation › Warehouse management system (WMS) › Mobile radio frequency › Voice-directed technologies 3. Mechanized automation › Conveyors › Automated storage and retrieval systems (ASRS) 4. Sophisticated automation › Automatic sorters › Palletizer › Robotic picking › Automated guided vehicles (AGV)
List measures to cope with a disruption.
› Implement culture for risks › Evaluation of risks, suppliers, etc. › Check & control mechanisms › Multi sourcing under geographic aspects › Redundancies and buffers
Differentiate between production logistics and retail logistics.
Production is the leading part › Limited # of SKU › Production line never stops › Permanent supply of production area › Minimized / no buffer at workstations › JIT / JIS strategies
Logistics is the leading part › Many SKU › Mass volume › High dynamic capacity / parts turnover › Order fulfilment mainly over night / same week
Explain the principles of site location.
Access to various forms of infrastructure comprise the main requirements for site location selection. Such as:
Motorway access
Railway access
Delivery over night capability (for slow movers)
Delivery in day capability (for fast movers)
Name the two basic data to determine the required storage area.
Ordering Costs
decline due to large scale effects
(discount for high order volume and reduced handling costs)
Holding Costs
› Cost of financing inventory
› Cost of facility
› Cost of operations
What is the Security Function of a Warehouse?
Within supply chain regarding delays in supply, quality problems, abnormal delays due to terrorism, fire, etc.
What is the Buffer Function of a Warehouse?
› To balance normal
fluctuations between
demand and supply
What is the Speculation Function of a Warehouse?
Use fluctuations of
prices in purchasing
and sales to increase
ROI
What is the Refining Function of a Warehouse?
Ripening of wine,
cheese, etc.
What is the relationship between global trade and real world GDP?
World trade and GDP have grown in
tandem for the last 10 years. Both
have increased by 26 per cent by 2008
