Purchasing Flashcards
Strengths & Disadvantages of highway
Strengths:
- Flexibility to deliver where and when needed
- Often the best balance among cost, flexibility and reliability/speed of delivery
Weaknesses: Neither the fastest or cheapest option
Strengths & Disadvantages of water
Highly cost-effective for bulky items
Most effective when linked to a multi modal system
Limited locations
Relatively poor delivery reliability/speed
Strengths & Disadvantages of rail
Highly cost-effective for bulky items
Can be most effective when linked to a multi modal system
Limited locations, less than water Better reliability/speed of delivery than water
Strengths & Disadvantages of air
Quickest mode of delivery
Flexible, especially when linked to highway mode
Often most expensive mode on a per-pound basis
Multi modal solution
Transportation solution that seeks to exploit the strengths of multiple transportation modes through physical, information monetary flows that are as seamless as possible
Roadrailer ➔ Specialized rail car the size of a standard truck that can be quickly switched from rail to ground transportation without changing the wheels
Warehousing
➔ Any operations that stores, repackages, stages, sorts or centralizes goods or materials
● Reduce transportation costs
● Improve operational flexibility
● Shorten customer lead times
● Lower inventory-related costs
Consolidation warehousing
warehousing that pulls together shipments in the same geographic area and combines them into larger and more economical loads
◆ Example: cross-docking, break-bulk, hub-and-spoke system
Postponement warehousing
combines classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment
Types of Warehouses
Assortment warehouses ➔ Form of warehouses in which a wide array of goods is held close to the source of demand in order to assure short customer lead times
Spot stock warehouses ➔ Form of warehouses that attempts to position seasonal goods close to the marketplace
Assortment warehouses
wide array of goods is held close
Spot stock warehouse
attempts to position seasonal good close
Logistics Information Systems
Decision support tools
• Real-time simulation and optimization
• Cost estimations
Planning systems
• Carrier selection
• Scheduling deliveries
Execution systems
• RFID
Material handling system
A system that includes the equipment and procedures needed to move goods
packaging
The way goods and materials are packed in order to facilitate physical, informational, and
monetary flows through the supply chain
Marketing channel
Exchange relationships that create customer value in the acquisition, consumption and disposition of products and services
