Lesson 7 Flashcards
what is traditionally thought of as a place to hold or store inventory?
warehousing
what is traditionally viewed as basic functions that collectively support the handling, identification, and protection of product?
materials handling and packaging
TRUE OR FALSE.
Uncertainty in demand, supply, and/or lead time is one of the reasons for doing strategic warehousing
true
TRUE OR FALSE.
Having production smoothing for manufacturing economies and volume discounts for transportation economies are few of the reasons for doing strategic warehousing
true
TRUE OR FALSE.
Customer service report is NOT one of the reasons for doing strategic warehousing
false
what services do warehouses specialize in?
supply and demand facing services
warehouses exist to ______ total cost or improve _______
lower; customer service
facilities used for inbound materials are?
supply-facing warehouses
facilities used for accommodation are?
demand-facing warehouses
these are different based on facilities support role
functionality and justification
what are the fundamentals or benefits of warehousing?
service and economic benefits
this pertain to operational strategy to add value within the supply chain process or for the customer
service benefits
this pertain to operational strategy to save money by using a storage point
economic benefits
what are some of the strategies incorporated to deliver service benefits?
stocking strategies and value-added services (for greater value creation)
what are the 3 stocking strategies?
- spot stock near customer - usually seasonal
- full-line stocking - inventory in anticipation of orders
- stocking to support production facility
give 5 sample of value-added services
packaging/kitting
drop-shipping
customer return
kanban
order fulfillment
what are the economic benefits
- consolidation and break-bulk
- sorting (cross-dock)
- seasonal storage
- reverse logistics
what pertains to the inventory where it receives supplies from multiple locations and combine it for shipment to customers?
consolidation warehouse
this warehouse breaks down large shipments for smaller deliveries to multiple customer destinations
break-bulk warehouse
the product from multiple sources is mixed to form orders shipped to multiple customers
cross-dock warehouse
the addition of product that is already sitting in the warehouse eg. Product D then shipped to multiple customers
In-transit mixing point
what accommodates either seasonal production or seasonal demand eg. patio/lawn furniture and agricultural products?
seasonal storage
what is the process of reverse logistics processing?
returns management > remanufacturing or repair > remarketing > recycling > disposal > hazardous materials and government regulation > product recalls
warehouse ownership arrangements can be classified into 2
private and public
what ownership arrangement is typically operated by the firm owning the product?
private ownership arrangement
what ownership arrangement is outsourced warehousing operations on a pay-for-service basis?
public ownership arrangement
what are the advantages of private ownership arrangement?
control, flexibility, cost, and intangibles