SCM 7 8 Flashcards
traditionally thought of as a place to hold or store inventory.
Warehousing
traditionally viewed as
basic functions that collectively support the handling, identification, and protection of product.
Materials Handling & Packaging
True or False
Warehousing functionality has become strategic in nature, taking into consideration significant complexities to efficiently meet customer requirements
True
True or false
Because there are many different types of warehouses and numerous materials handling and packaging considerations, they do not fit into a neat classification scheme as used in areas such as order management, inventory, and transportation.
True
___ encouraged by the advent of e-commerce, is now frequently considered as a very large and strategic capital investment by many firms.
Materials Handling
____ has become strategic in nature, providing numerous ben- efits that take into consideration significant complexities to most efficiently meet customer requirements.
warehouse functionality
___ has continued to evolve, simultaneously incorporating both commercial marketing-related elements as well as industrial handling considerations.
packaging
The term _____ became widely used throughout industry to capture this dynamic development in traditional warehousing.
distribution center
Facilities used for inbound materials are _____
supply-facing warehouses.
Facilities used for customer accommodation are ___
demand-
facing warehouses.
T or F:
Warehouses exist to higher total cost or improve customer service.
F.
should be lower total cost
_________ benefits of warehousing – operational strategy to add value within
the supply chain process.
Service benefits
_______ benefits – operational strategy to save money
by using a storage point.
Economic benefits
Under service benefits of warehousing
It is typically used to support customer requirements. Manufacturers of highly “seasonal products” often ______.
Spot Stock / Spot Stoking
Note:
select inventory is positioned or spot-stocked in a local market warehouse in anticipation of responding to customer need during the critical sales period.
Warehouses can improve service in three ways:
(1) spot-stocking,
(2) full-line stocking,
(3) value-added services.
Under service benefits of warehousing
It is the traditional use of warehouses by manufacturers, wholesalers, and retailers is to stock product inventory combinations in anticipation of customer orders.
Full line stocking
T or F
A firm following a full-line stocking strategy would temporarily warehouse a narrow product assortment in a large number of warehouses for a limited time period. The spot stocking warehouse is more often restricted to a few strategic loca- tions and operates year-round.
F. interchange both of them
T or F
Full-line stocking warehouses improve service by reducing the number of suppliers that a customer must logistically deal with. The combined assortments also make economical larger shipments possible.
T
The demand for highly customized service has transformed modern distribution warehouses into facilities that specialize in performing ____
value-added services (VAS).
Under service benefits of warehousing
A ____ is any work that creates a greater value for customers. it ypically change the physical features or configuration of products so they are presented to customers in a unique or customized manner.
Value-added service
Bonus:
The following provides a list of typical value-added services:
- Cross-dock/transloading.
- Customer returns.
- Home deliver.
- In-transit merge.
- Kanban.
- Kitting.
- Labeling/pre-ticketing.
- Lot control.
- Mass.
- customization/postponement.
- Manufacturing support.
- Order fulfilment.
- Pick/pack.
- Pool distribution.
- Repair/refurbish.
- Returnable container management.
- Reverse logistics.
- RFID tag application.
- Sequencing/metering.
- Specialty packaging.
- Store support/direct store delivery (D
SD).
The Four basic economic benefits of warehousing are:
(1) consolidation and break-bulk
(2) sorting
(3) seasonal storage
(4) reverse logistics.
The economic benefits of _______ are to reduce transportation cost by using warehouse capability to increase the size of shipments.
multiple choice:
(1) consolidation and break-bulk
(2) sorting
(3) seasonal storage
(4) reverse logistics.
consolidation and break-bulk
In ______, the warehouse receives inventory, from a number of sources, that are combined into a large single shipment to a specific destination.
consolidation
note:
The benefits of consolida- tion are the realization of the lowest possible freight rate, timely and controlled delivery, and reduced congestion at a customer’s receiving dock.
A _____ operation receives a single large shipment and arranges for delivery to multiple destinations. Large shipments are broken down for smaller deliveries to multiple customer destinations.
break-bulk
The basic benefit of _____ is to reconfigure freight as it is being transported from ori- gin to destination.
multiple choice:
(1) consolidation and break-bulk
(2) sorting
(3) seasonal storage
(4) reverse logistics.
Sorting
Three types of assortment—cross-docking, mixing, and assembly—are widely performed in logistical systems.
The objective of _____ is to combine inventory from multiple origins into a customized assortment to meet the needs of a specific customer. Product from multiple sources is mixed to form orders shipped to multiple customers
cross-docking
One major difference with a ____ facility is the addition of product already sitting in the warehouse, such as Product D.
mixing
The economic benefit of ____ is to accommodate either seasonal production or demand.
seasonal storage
Reverse logistics includes the activities to support (give 5):
(1) returns management,
(2) remanufacturing and repair,
(3) remarketing,
(4) recycling, and
(5) disposal.
Warehouse Ownership Arrangements
A ___ warehouse is typically operated by the firm owning the product. The building, however, may be owned or leased.
Private warehouse
Note:
offers more control, flexibility, intangible benefits, and less cost
____ – operated by “niche experts” providing customized service with
long-term relationships.
Contract
____ warehouses are used extensively in logistical systems. Almost any combination of services can be arranged on a for-hire or pay-for-service basis for either short or long term.
Public warehouses
Bonus:
Public warehouses have traditionally been classified based on operational specialization such as (1) general merchandise, (2) refrigerated, (3) special commodity, (4) bonded, and (5) household goods and furniture.
T or F
At low volumes, private warehouses, which can operate on a
per unit basis, are generally more economical.
False. should be public WH
IN making warehouse decisions, the following (give 7) are considered, which are:
- Site selection.
- Design.
- Product-Mix analysis.
- Handling.
- Expansion.
- Layout.
- Sizing.
SDP HELS
T or F: Warehousing reduce transportation costs in a certain range.
- Increase outbound transportation costs.
- Reduce inbound transportation costs.
false
should be:
* Reduce outbound transportation costs.
* Increase inbound transportation costs.
In warehousing, ____ answers the following questions:
How should the product be stored within the warehouse?
What product characteristics might affect this choice?
layout
Give:
3 storage practice (slotting) in warehousing-layout are:
2 ways of picking the product in warehousing-layout:
Storage practice (slotting)
* First available.
* Fixed area.
* ABC.
Picking the product.
* FIFO (first-in-first-out).
* LIFO (last-in-first-out).
Warehouses can be extremely complex operations. Primary functions include product handling and storage.
Give five primary handling activities:
Receiving
Produck Putaway
in-storage product handling
Order-picking,
Shipping.
What are 5 Product handling considerations in warehouse operations
- Basic handling considerations.
- Mechanized systems. (employ a wide range of handling equipment)
- Semi-automated systems.
- Automated systems.
- Special handling
considerations.
A typical warehouse is engaged in a combination of ___ and ____ product storage alternatives
— active storage (most goods must be stored for at least a short time)
— extended storage (When inventory is held for a longer time than required for normal replenishment)
Give 4 Secondary functions in Warehouse Operations.
- Accuracy and audits.
- Security.
- Safety & maintenance.
- Environmental concerns and regulatory environment.
Read only
Product handling considerations
- Equipment for handling and storage should be
standardized - The system should be designed in motion
- Investment should be in handling
- Handling equipment should be maximized
extent possible. - the ratio of dead weight to
payload should be minimized. - gravity flow should be incorporated
ok
Product Handling
The process of unloading product; responsible
for ensuring SKU and quantity accuracy.
receiving
PRoduct handling
placement of product into active or
secondary locations for storage.
Product put away
PRoduct handling
active pick location
replenishment, space consolidation
In storage product handling
PRoduct handling
grouping of unique SKU’s and quantities
to facilitate order assembly
order picking
PRoduct handling
loading and verification of outbound
transportation equipment
shipping
Mechanized systems
can move loads of master
cartons both HORIZONTALLY and VERTICALLY but are limited to
handling unit loads
lift trucks
Mechanized systems
consist of either in-floor or overhead-mounted
CABLE or drag devices. It is utilized to provide continuous
power to four-wheel trailers
towlines
Mechanized systems
consist of a driver-guided POWER unit
towing one or more four-wheel trailers. The tractor, in
COMBINATION with a trailer, like a towline, is used during
order selection.
tractor trailers
Mechanized systems
used widely in shipping and receiving
operations and serve as the BASIC handling device for
several order selection systems
conveyors
Mechanized systems
consist of a series of bins mounted on an
OVAL track or rack
carousels
GIVE 4 Semi-automated sa MATERIAL HANDLING or WH operations
- Automated guided vehicles (AGV).
- Sortation.
- Robotics.
- Flow racks
GIVE 2 AUTOMATED SYSTEMS SA WH OPERATIONS
- Order selection.
- Automated storage & retrieval
systems (AS/RS).
GIVE 2 Special handling considerations
- e-fulfillment
- Returns processing
___ Storage – focused on quick movement and
flexibility; emphasis on picking and put-away productivity.
ACTIVE STORAGE
____ storage – focused on long-term storage;
emphasis on maximum space utilization.
EXTENDED STORAGE
DEFINITIONS OF SECONDARY WH OPERATIONS. FILL IN THE BLANKS
_____ – reducing pilferage and damage.
_____ – of critical importance, maintaining an
accurate account of product on hand within the warehouse (example, physical inventories, cycle count programs).
____ – numerous factors at play within a warehouse.
_____ – role preventative maintenance plays in safety and asset protection.
* If it’s not done safely, it doesn’t matter!
- SECURITY
- ACCURACY AND AUDITS
- ENVIRONMENTAL CONCERNS AND REGULATORY ENVIRONMENT
- SAFETY AND MAINTENANCE
Warehouse operations can present a wide variety of potential hazards for the worker. For warehousing establishments, the 10 OSHA standards most frequently included in the agency’s citations were:
- Forklifts
- Hazard communication
- Electrical, wiring methods
- Electrical, system design
- Guarding floor & wall openings and holes 6. Exits
- Mechanical power transmission
- Respiratory protection
- Lockout/tagout
- Portable fire extinguishers
___ – system running operations within four WALLS of the warehouse, varying levels of functionality.
Warehouse Management Systems (WMS)
____ – system for
monitoring TRAILERS in external facility “yard” and managing
delivery/pickup appointment schedule.
*
Yard Management Systems (YMS)
____ – system include directed supportive TECHNOLOGY such as R F and light-directed.
Information Directed Systems
6 Advanced Functionality of Warehouse Management System
- Yard management
- Labor management
- Warehouse optimization
- Value-added services
- Planned cross-dock
- Returns management
____ is typically viewed as being either consumer
(focused primarily on marketing) or industrial (focused on logistics).
Packaging
When master cartons are grouped into larger units for handling, the combination is referred to as ____
containerization or unitization.
Read only
Package decisions have a major impact on logistical productivity and efficiency.
Package design.
* Cube & weight minimization.
* Handling efficiency.
Unitization.
Grouping of master cartons into one unit for materials handling.
* Rigid devices.
* Flexible devices
ok
Packaging is typically viewed as being either ____ (focused primarily on marketing) or ____ (focused on logistics)
– consumer
– industrial
Containers used to group individual products are called ___
master cartons.
Basic Pallet Master Carton Stacking Patterns
– block
– brick
– row
– pinwheel
read only
Benefits of rigid devices.
* Improves overall material movement efficiency.
* Reduces damage in handling and transit.
* Reduces pilferage.
* Reduces protective packaging requirements.
* Provides greater protection from environmental elements.
* Provides a shipment unit that can be reused a substantial
number of times, thereby reducing waste and the need to
dispose of the container.
ok
3 Ties to information management systems.
- Human readable.
- Bar codes.
- Radio frequency identification (RFID)
Which Mode based on packaging protections?
- Bouncing.
- Potholes.
- LTL: protect from mishandling and
stacking - Second most expensive mode
Truck
Which Mode based on packaging protections?
- Handling damage.
- Truck carriage dynamics.
- Most expensive mode.
Air
Which Mode based on packaging protections?
- Switching requires secure
stowage - Side-sway
- Longer shelf life
- Heat and cold
- Third most expensive mode
Rail
Supply chain globalization can be characterized using four strategies, which are
(1) no international strategy, (2) multi-domestic strategy, (3) global strategy, and
(4) transnational strategy.
Which Mode based on packaging protections?
- Dynamics in all directions.
- Handling damage.
- Longer shelf-life.
- Least expensive mode.
Ocean
one of the globalization strategies describing firms that are involved only in domestic operations. While there may be some international transactions in the form of sourcing or delivery, there is no systematic strategy or plan to organize or grow international operations.
No international strategy
Advantages.
* Focused on local market.
* Minimum coordination
efforts.
* Cross-functional decisions
made by small group of
executive managers
Disadvantages
* Growth limited to local
markets.
* Not easy to respond to
globally-based customers.
* Not large enough to take
advantage of economies
of scale
t or f
Utility relates inversely to transport cost.
false.
“directly, not inversely”
Essay practice
- Discuss and illustrate the economic justification for establishing a warehouse.
- Under what conditions could it make sense to combine private and public warehouses in a logistical system?
- Discuss and illustrate the role of warehouses in reverse logistics.
- Discuss the differences between rigid and nonrigid containers. Discuss the importance
of load securing in unitization. - In terms of basic handling, what is the role of a unit load?
…
A globalization strategy characterizes firms that operate in multiple nations implying that they have operations in multiple countries, but the country in which the corporate headquarters is located is the dominant country.
Multiple domestic strategy
Advantages
* Focused on local market.
* Minimum coordination
efforts.
* Allows firm to focus on
key growth markets while
minimizing complexity
across a large number of
markets
Disadvantages
* Not scalable.
* Not easy to respond to
globally-based customers.
one of the globalization strategies, known as ____ , implies cross-border operations with some local market customization. While there is typically a single headquarters that coordinates global operations, the logistics and supply chain activities occur in regions around the world.
Global strategy
Advantages
* Focused on local market.
* Firm begins to take
advantage of global
brands and products.
* Can meet the unique
needs of individual
markets.
Disadvantages
* Not scalable.
* Not easy to respond to
globally-based customers.
* Limited synergies when
working with global
customers.
* Limited drivers for global
data and processes.
____ characterizes firms that maintain regional operations around the globe and use a headquarters structure that optimizes firm effectiveness and performance. While there are still generally regional operations, there is no single headquarters region, and different activities may be located in sepa- rate regions to ensure a broad global perspective
Transational strategy
Advantages
* Global focus to facilitate
global solution
development and delivery.
* Very scalable to domestic
and global firms.
Disadvantages
* Requires substantial
coordination and
information integration.
* Reduced ability to
respond to market
uniqueness.
one of the Common Forms of Int’l Logistics Documentation
A contract between an importer and a bank that transfers liability or paying the exporter from the importer to the (supposedly more creditworthy) importer’s bank
Export irrevocable commercial letter of credit.
one of the Common Forms of Int’l Logistics Documentation
A means of payment for an import/export transaction. Two
types exist: transaction payable on site with proper
documents (sight draft) and transaction payable at some
fixed time after acceptance of proper documents (time
draft). Either type of draft accompanied by instructions and
other documents (but no letter of credit) is a documentary
draft.
Bank draft (or bill of exchange).
one of the Common Forms of Int’l Logistics Documentation
Issued by the shipping company or its agent as evidence
of a contract for shipping the merchandise and as a claim
to ownership of the goods.
Bill of lading
one of the Common Forms of Int’l Logistics Documentation
May replace the bill of lading if goods as shipped by air
(airway bill) or by more than one mode of transportation.
Combined transport document
one of the Common Forms of Int’l Logistics Documentation
A document written by the exporter to precisely describe the goods and terms of sale (similar to a shipping invoice
used in domestic shipment).
Commercial invoice
one of the Common Forms of Int’l Logistics Documentation
Explains what type of coverage is utilized (example, fire, theft, water), the name of the insurer, and the exporter
whose property is being insured.
Insurance certificate
one of the Common Forms of Int’l Logistics Documentation
Denotes the country in which the goods were produced to assess tariffs and other government-imposed restrictions on trade.
Certificate of origin.
Determine which type of global strategy
Service Focus Standard product for local market
Marketing Strategy Single strategy focused on the local market
Delivery Strategy
Direct to customer
Management Strategy Single simple financials
HR Development Operated by entrepreneur with limited specialization
No international strategy
Determine which type of global strategy
Service Focus Domestic marketing and delivery
Marketing Strategy Domestic customers
Delivery Strategy Collaboration
Management Strategy Transaction-driven with integrated financials
HR Development Management with “home country” focus
Multi Domestic Strategy
Determine which type of global strategy
Service Focus Local market customization
Marketing Strategy Focused, specific market areas which may cross international boundaries
Delivery Strategy Subsidiaries with local presence
Management Strategy Decentralized operations with local profit responsibility
HR Development Limited top management with international experience
global strategy
Determine which type of global strategy
Service Focus Global branding and integrated operations
Marketing Strategy Global customers
Delivery Strategy Worldwide flow of key resources
Management Strategy Centralized planning in global sites
HR Development International training and experience
Transnational Strategy
Which entry mode
Favorable Conditions
* Limited or unclear sales potential in target countries.
* Standardized product requiring little modification.
* Favorable import policies in target countries; unclear political stability.
Strengths * Minimizes involvement, commitment, and risk.
* Increases speed and flexibility of engaging target countries.
* Uses existing production facilities worldwide.
Weaknesses * Company and its products are viewed as outsiders and foreign market entrants.
* Costs associated with trade barriers, tariffs, and transportation.
Exporting and Importing
Which entry mode
Favorable Conditions * Import and investment barriers exist in target countries, but moderate sales potential exist.
* Large cultural distance between home and host countries.
Strengths * it has limited ability to become a future competitor.
* Moderate involvement and commitment, and low risk.
* Moderate speed and flexibility of engaging target countries.
* Can circumvent import barriers; sales potential.
Weaknesses * its period is limited in contractual length, and licensee may become competitor.
* Lack of control over the use of company and non-company assets to promote products.
Licensing and Franchising
Which entry mode
Favorable Conditions * Import barriers exist in target countries but government restrictions exist on foreign ownership.
* Moderate to high sales potential of products.
* Local partner can provide knowledge, skills, and network.
Strengths * Overcomes ownership restrictions and cultural distance.
* Potential for learning and resource combination.
*its ownership >50% are typically viewed as domestic companies.
Weaknesses * are new companies, legally independent from the original companies.
* are difficult to manage for the original companies and there is a lack of control over strategic and tactical issues.
International Joint Ventures (IJV)
Which entry mode
Favorable Conditions * Import barriers exist in target countries but low political risk.
* Small cultural distance between home and host countries.
* High sales potential of products but assets cannot be fairly priced.
Strengths * Viewed as being locally committed and involved.
* Gain knowledge, over time, of the local market.
* Can apply local skills to customize production.
Weaknesses * Higher risk being taken while being more committed and involved.
* Requires more human and non-human resources, and interaction and integration with local employees.
Foreign Direct Ownership
