Module 7: Warehouse Management

Question 1

Buildings or parts of buildings designated by the US Secretary of the Treasury for storing imported merchandise, operated under US Customs supervision.

Answer 1

bonded warehouse

Question 2

The activities related to receiving, storing, and shipping materials to and from production or distribution locations.

Answer 2

warehousing

Question 3

The grouping of shipments to obtain reduced costs or improved utilization of the transportation function. Consolidation can occur by market area grouping, grouping according to scheduled deliveries, or using third-party pooling services such as public warehouses and freight forwarders. Syn: freight consolidation

Answer 3

consolidation

Question 4

1) Dividing truckloads, railcars, or containers of homogeneous items into smaller, more appropriate quantities for use. 2) A distribution center that specializes in [these types of] activities. 3) Unitized cargo in bales, boxes, or crates that is placed directly in a ship’s holds rather than in containers.

Answer 4

break-bulk

Question 5

A place to receive, store, and ship materials.

Answer 5

warehouse

Question 6

The rate at which the system generates “goal units.” Because [this] is a rate, it is always expressed for a given time period—such as per month, week, day, or even minute. If the goal units are money, [this] is an amount of money per time period. In that case, [it] is calculated as revenues received minus totally variable costs divided by units of the chosen time period.

Answer 6

throughput

Question 7

A company-owned warehouse.

Answer 7

private warehouse

Question 8

The concept of packing products on incoming shipments so they can be easily sorted at intermediate warehouses or for outgoing shipments based on final destination. The items are carried from the incoming vehicle docking point to the outgoing vehicle docking point without being stored in inventory at the warehouse. [It] reduces inventory investment and storage space requirements. Syn: direct loading.

Answer 8

cross-docking

Question 9

A warehouse or portion of a warehouse used for cross-docking.

Answer 9

cross-docking warehouse

Question 10

Typically a finished goods warehouse designed for demand-driven rapid distribution to retailers (retail distribution centers), wholesalers, or direct shipments to customers (order fulfillment centers). Cross-docking warehouses are another type of distribution center

Answer 10

distribution center

Question 11

A high-density rack inventory storage system that uses vehicles to automatically load and unload the racks.

Answer 11

automated storage/retrieval system (AS/RS)

Question 12

The warehouse space that is rented or leased by an independent business providing a variety of services for a fee or on a contract basis. These services can include product inspection, product rating, and repackaging. These facilities are typically located near primary roads, railways, or inland waterways to facilitate rapid receiving and shipping of products.

Answer 12

public warehouse

Question 13

Positioning seasonal items in proximity to the market. When the season ends, these items are either disposed of or relocated to a more centralized location.

Answer 13

spot stocking warehouse

Question 14

Relocating material from a bulk storage area to an order pick storage area and documenting this relocation.

Answer 14

replenishment

Question 15

A materials handling approach for order picking in which the picker goes to the product location (e.g., forklifts, order picking trucks).

Answer 15

picker-to-part system

Question 16

A key process in warehouse operation that ensures the correct product has been received, in the right quantity, in the right condition, and at the right time.

Answer 16

warehouse receiving

Question 17

A materials handling approach for order picking where the pick location is brought to the order picker (e.g., carousels).

Answer 17

part-to-picker system

Question 18

A shipping unit made up of a number of items; bulky material arranged or constrained so the mass can be picked up or moved as a single unit. Reduces material handling costs. Often shrink-packed on a pallet before shipment.

Answer 18

unit load

Question 19

A document that lists the material to be picked for manufacturing or shipping orders. Syn: disbursement list, material list, stores issue order, stores requisition.

Answer 19

picking list

Question 20

A picking methodology assuring that the usage shelf life of items is optimized. Years ago, first in, first out (FIFO) was satisfactory as the shelf-life days for items often didn’t vary and FIFO often coincided with the expiry dates. However, re-testing is frequently done to extend shelf-life dates on some lots or batches, while other lots may have typical shelf-life dates shortened because of quality or processes. Thus, FEFO was introduced by software vendors to provide this picking methodology for use with shelf-life controlled items.

Answer 20

first expiry first out

Question 21

Using a building or other structure as a planned space for storing goods and materials.

Answer 21

warehouse storage

Question 22

The function of physically separating a homogeneous subgroup from a heterogeneous population of items.

Answer 22

sorting

Question 23

Thin sheets of fiberboard or plastic on which product is stacked, used as an alternative to wood pallets because they take up little space in warehouses or shipping containers.

Answer 23

slip sheet

Question 24

1) The capability of a system to perform its expected function. 2) The capability of a worker, machine, work center, plant, or organization to produce output per time period. Capacity required represents the system capability needed to make a given product mix (assuming technology, product specification, etc.). As a planning function, both capacity available and capacity required can be measured in the short term (capacity requirements plan), intermediate term (rough-cut capacity plan), and long term (resource requirements plan). Capacity control is the execution through the I/O control report of the short-term plan. Capacity can be classified as budgeted, dedicated, demonstrated, productive, protective, rated, safety, standing, or theoretical. See: capacity available, capacity required. 3) Required mental ability to enter into a contract.

Answer 24

capacity

Question 25

The expected output capability of a resource or system. Capacity is traditionally calculated from such data as planned hours, efficiency, and utilization. [This] is equal to hours available × efficiency × utilization.

Answer 25

rated capacity

Question 26

The length of time that should be required to (1) set up a given machine or operation and (2) run one batch or one or more parts, assemblies, or end products through that operation. Used in determining machine requirements and labor requirements. Assumes an average worker who follows prescribed methods, and allows time for personal rest to overcome fatigue and unavoidable delays. Also frequently used as a basis for incentive pay systems and as a basis of allocating overhead in cost accounting systems.

Answer 26

standard time

Question 27

An attempt at reducing/eliminating deadheading (i.e., driving an empty material-handling vehicle). A warehouse management system directs a material-carrying vehicle to put away materials as it goes to pick up other materials.

Answer 27

task interleaving

Question 28

The practice of moving, in an orderly fashion, a pallet of merchandise to an area where the space is not exhausted, resulting in a vacant space not usable for the storage of other items. This is one of the hidden costs of warehousing.

Answer 28

honeycombing

Question 29

A measurement (usually expressed as a percentage) of the actual output relative to the standard output expected. [This] measures how well something is performing relative to existing standards; in contrast, productivity measures output relative to a specific input (e.g., tons/labor hour). [It] is the ratio of (1) actual units produced to the standard rate of production expected in a time period, or (2) standard hours produced to actual hours worked (taking longer means less [of this]), or (3) actual dollar volume of output to a standard dollar volume in a time period.

Answer 29

efficiency

Question 30

1) A measure (usually expressed as a percentage) of how intensively a resource is being used to produce a good or service. Compares actual time used to available time. Traditionally, calculated as the ratio of direct time charged (run time plus setup time) to the clock time available. [It] is a percentage between 0 percent and 100 percent that is equal to 100 percent minus the percentage of time lost due to the unavailability of machines, tools, workers, and so forth. 2) In the theory of constraints, activation of a resource that productively contributes to reaching the goal. Over-activation of a resource does not productively [use] a resource.

Answer 30

utilization

Question 31

In warehousing and transportation, a measurement of the utilization of the total storage capacity of a vehicle storage bay, container, type of warehouse equipment, or entire warehouse. The intent is to minimize unused horizontal or vertical space.

Answer 31

cube utilization

Question 32

A software licensing and distribution model that provides access to applications via the internet on a subscription basis. A service provider hosts the application at its data center and customers access it through a web browser. Often referred to as “on-demand” software and used by companies to avoid purchasing, implementing and maintenance costs.

Answer 32

software as a service (SaaS)

Question 33

A device following a fixed route that has the capability of moving material between points in a facility. This device commonly is used when there is a high volume of flow along the route.

Answer 33

conveyor

Question 34

A system that organizes and directs the traffic of all vehicles in the parking yards located at various industrial buildings like warehouses, distribution centers, and manufacturing plants.

Answer 34

yard management system

Question 35

A method of storage in which a relatively permanent location is assigned for the storage of each item in a storeroom or warehouse. Although more space is needed to store parts than in a random-location storage system, fixed locations become familiar, and therefore a locator file may not be needed.

Answer 35

fixed location storage

Question 36

A joint government-business endeavor for imports (not exports) to increase the security of supply chains and US borders. Initiated by US Customs, [this] involves voluntary cooperation of supply chain participants such as importers, carriers, brokers, warehouse operators, and manufacturers. Participants audit their logistical system security and answer a security questionnaire in exchange for a likely (but not guaranteed) faster customs clearing process and fewer inspections.

Answer 36

Customs-Trade Partnership Against Terrorism

Question 37

The utilization of mechanical or electronic devices to complete tasks related to storing, retrieving, and moving inventory as a substitute for labor resources. Used for cost savings, added security, and to keep human workers out of sensitive environments.

Answer 37

warehouse automation

Question 38

A method of performing order-picking activities in a warehouse or distribution center using verbal commands.

Answer 38

pick-to-voice system

Question 39

Movement and storage of goods inside the distribution center. This represents a capital cost and is balanced against the operating costs of the facility.

Answer 39

materials handling

Question 40

A computer application system designed to manage and optimize workflows and the storage of goods within a warehouse. Often interfaces with automated data capture and enterprise resources planning systems.

Answer 40

warehouse management system

Question 41

A pick system that uses software to light up displays at each pick location and determines how much needs to be picked. The pickers use this as their requirement to pull for that particular order to set of orders.

Answer 41

pick-to-light

Question 42

A storage technique in which parts are placed in any space that is empty when they arrive at the storeroom. Although this random method requires the use of a locator file to identify part locations, it often requires less storage space than a fixed-location storage method.

Answer 42

random-location storage

Question 43

A transportation network that automatically routes one or more material handling devices, such as carts or pallet trucks, and positions them at predetermined destinations without operator intervention.

Answer 43

automated guided vehicle system

Question 44

A process that uses lights to ensure materials are placed in the correct locations. Also used to ensure that picked items are placed correctly.

Answer 44

put-to-light

Question 45

A system using electronic tags to store data about items. Accessing or retrieving this data is accomplished through a specific radio frequency and does not require close proximity or line-of-sight access.

Answer 45

radio frequency identification

Question 46

An RFID tag that sends out data, is self-powered, and widens its range by harnessing power from the reader.

Answer 46

semipassive tag

Question 47

In warehousing, the consolidation of several units into larger units for fewer handlings.

Answer 47

unitization

Question 48

A radio frequency identification tag that broadcasts information and contains its own power source.

Answer 48

active tag

Question 49

1) A manufacturing technique in which parts are accumulated and processed together in a lot. 2) A computer technique in which transactions are accumulated and processed together or in a lot. Syn: batch production.

Answer 49

batch processing

Question 50

Codes that are used with RFID tags to carry information on the product that will support warranty programs.

Answer 50

electronic product codes

Question 51

A RFID tag that does not send out data and is not self-powered.

Answer 51

passive tag

Question 52

A platform designed to be loaded with packages and moved by a forklift.

Answer 52

pallet

Question 53

Materials surrounding an item to protect it from damage during transportation. The type of packaging influences the danger of such damage

Answer 53

packaging

Question 54

A system that can use various means, including bar code scanning and radio frequencies, to sense and load data in a computer.

Answer 54

automated identification system

Question 55

The packing material used to protect a product from damage during transport. Some industries use the term to refer specifically to returnable packaging only.

Answer 55

dunnage

Question 56

Technologies that collect data about objects and then sends the data to a computer without human intervention. Examples include radio frequency wireless devices and terminals, bar code scanners, and smart cards.

Answer 56

automatic identification and data capture