SCM 7 8 Flashcards

1
Q

traditionally thought of as a place to hold or store inventory.

A

Warehousing

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2
Q

traditionally viewed as
basic functions that collectively support the handling, identification, and protection of product.

A

Materials Handling & Packaging

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3
Q

True or False

Warehousing functionality has become strategic in nature, taking into consideration significant complexities to efficiently meet customer requirements

A

True

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4
Q

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.

A

True

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4
Q

___ encouraged by the advent of e-commerce, is now frequently considered as a very large and strategic capital investment by many firms.

A

Materials Handling

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5
Q

____ has become strategic in nature, providing numerous ben- efits that take into consideration significant complexities to most efficiently meet customer requirements.

A

warehouse functionality

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6
Q

___ has continued to evolve, simultaneously incorporating both commercial marketing-related elements as well as industrial handling considerations.

A

packaging

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7
Q

The term _____ became widely used throughout industry to capture this dynamic development in traditional warehousing.

A

distribution center

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8
Q

Facilities used for inbound materials are _____

A

supply-facing warehouses.

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9
Q

Facilities used for customer accommodation are ___

A

demand-
facing warehouses.

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10
Q

T or F:

Warehouses exist to higher total cost or improve customer service.

A

F.
should be lower total cost

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11
Q

_________ benefits of warehousing – operational strategy to add value within
the supply chain process.

A

Service benefits

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12
Q

_______ benefits – operational strategy to save money
by using a storage point.

A

Economic benefits

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13
Q

Under service benefits of warehousing

It is typically used to support customer requirements. Manufacturers of highly “seasonal products” often ______.

A

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.

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14
Q

Warehouses can improve service in three ways:

A

(1) spot-stocking,
(2) full-line stocking,
(3) value-added services.

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15
Q

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.

A

Full line stocking

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16
Q

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.

A

F. interchange both of them

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17
Q

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.

A

T

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18
Q

The demand for highly customized service has transformed modern distribution warehouses into facilities that specialize in performing ____

A

value-added services (VAS).

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19
Q

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.

A

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).
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20
Q

The Four basic economic benefits of warehousing are:

A

(1) consolidation and break-bulk
(2) sorting
(3) seasonal storage
(4) reverse logistics.

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21
Q

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.

A

consolidation and break-bulk

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22
Q

In ______, the warehouse receives inventory, from a number of sources, that are combined into a large single shipment to a specific destination.

A

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.

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23
Q

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.

A

break-bulk

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24
Q

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.

A

Sorting

Three types of assortment—cross-docking, mixing, and assembly—are widely performed in logistical systems.

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25
Q

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

A

cross-docking

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26
Q

One major difference with a ____ facility is the addition of product already sitting in the warehouse, such as Product D.

A

mixing

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27
Q

The economic benefit of ____ is to accommodate either seasonal production or demand.

A

seasonal storage

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27
Q

Reverse logistics includes the activities to support (give 5):

A

(1) returns management,
(2) remanufacturing and repair,
(3) remarketing,
(4) recycling, and
(5) disposal.

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27
Q

Warehouse Ownership Arrangements

A ___ warehouse is typically operated by the firm owning the product. The building, however, may be owned or leased.

A

Private warehouse

Note:
offers more control, flexibility, intangible benefits, and less cost

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28
Q

____ – operated by “niche experts” providing customized service with
long-term relationships.

A

Contract

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28
Q

____ 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.

A

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.

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29
Q

T or F

At low volumes, private warehouses, which can operate on a
per unit basis, are generally more economical.

A

False. should be public WH

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30
Q

IN making warehouse decisions, the following (give 7) are considered, which are:

A
  • Site selection.
  • Design.
  • Product-Mix analysis.
  • Handling.
  • Expansion.
  • Layout.
  • Sizing.

SDP HELS

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31
Q

T or F: Warehousing reduce transportation costs in a certain range.

  • Increase outbound transportation costs.
  • Reduce inbound transportation costs.
A

false

should be:
* Reduce outbound transportation costs.
* Increase inbound transportation costs.

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32
Q

In warehousing, ____ answers the following questions:

How should the product be stored within the warehouse?
What product characteristics might affect this choice?

A

layout

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33
Q

Give:

3 storage practice (slotting) in warehousing-layout are:

2 ways of picking the product in warehousing-layout:

A

Storage practice (slotting)
* First available.
* Fixed area.
* ABC.

Picking the product.
* FIFO (first-in-first-out).
* LIFO (last-in-first-out).

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34
Q

Warehouses can be extremely complex operations. Primary functions include product handling and storage.

Give five primary handling activities:

A

Receiving
Produck Putaway
in-storage product handling
Order-picking,
Shipping.

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35
Q

What are 5 Product handling considerations in warehouse operations

A
  • Basic handling considerations.
  • Mechanized systems. (employ a wide range of handling equipment)
  • Semi-automated systems.
  • Automated systems.
  • Special handling
    considerations.
36
Q

A typical warehouse is engaged in a combination of ___ and ____ product storage alternatives

A

— 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)

37
Q

Give 4 Secondary functions in Warehouse Operations.

A
  • Accuracy and audits.
  • Security.
  • Safety & maintenance.
  • Environmental concerns and regulatory environment.
38
Q

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
A

ok

39
Q

Product Handling

The process of unloading product; responsible
for ensuring SKU and quantity accuracy.

A

receiving

40
Q

PRoduct handling

placement of product into active or
secondary locations for storage.

A

Product put away

41
Q

PRoduct handling

active pick location
replenishment, space consolidation

A

In storage product handling

42
Q

PRoduct handling

grouping of unique SKU’s and quantities
to facilitate order assembly

A

order picking

43
Q

PRoduct handling

loading and verification of outbound
transportation equipment

A

shipping

44
Q

Mechanized systems

can move loads of master
cartons both HORIZONTALLY and VERTICALLY but are limited to
handling unit loads

A

lift trucks

45
Q

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

A

towlines

46
Q

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.

A

tractor trailers

47
Q

Mechanized systems

used widely in shipping and receiving
operations and serve as the BASIC handling device for
several order selection systems

A

conveyors

48
Q

Mechanized systems

consist of a series of bins mounted on an
OVAL track or rack

A

carousels

49
Q

GIVE 4 Semi-automated sa MATERIAL HANDLING or WH operations

A
  • Automated guided vehicles (AGV).
  • Sortation.
  • Robotics.
  • Flow racks
50
Q

GIVE 2 AUTOMATED SYSTEMS SA WH OPERATIONS

A
  • Order selection.
  • Automated storage & retrieval
    systems (AS/RS).
51
Q

GIVE 2 Special handling considerations

A
  • e-fulfillment
  • Returns processing
52
Q

___ Storage – focused on quick movement and
flexibility; emphasis on picking and put-away productivity.

A

ACTIVE STORAGE

53
Q

____ storage – focused on long-term storage;
emphasis on maximum space utilization.

A

EXTENDED STORAGE

53
Q

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!

A
  1. SECURITY
  2. ACCURACY AND AUDITS
  3. ENVIRONMENTAL CONCERNS AND REGULATORY ENVIRONMENT
  4. SAFETY AND MAINTENANCE
53
Q

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:

A
  1. Forklifts
  2. Hazard communication
  3. Electrical, wiring methods
  4. Electrical, system design
  5. Guarding floor & wall openings and holes 6. Exits
  6. Mechanical power transmission
  7. Respiratory protection
  8. Lockout/tagout
  9. Portable fire extinguishers
54
Q

___ – system running operations within four WALLS of the warehouse, varying levels of functionality.

A

Warehouse Management Systems (WMS)

55
Q

____ – system for
monitoring TRAILERS in external facility “yard” and managing
delivery/pickup appointment schedule.
*

A

Yard Management Systems (YMS)

55
Q

____ – system include directed supportive TECHNOLOGY such as R F and light-directed.

A

Information Directed Systems

55
Q

6 Advanced Functionality of Warehouse Management System

A
  • Yard management
  • Labor management
  • Warehouse optimization
  • Value-added services
  • Planned cross-dock
  • Returns management
55
Q

____ is typically viewed as being either consumer
(focused primarily on marketing) or industrial (focused on logistics).

A

Packaging

55
Q

When master cartons are grouped into larger units for handling, the combination is referred to as ____

A

containerization or unitization.

55
Q

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

A

ok

55
Q

Packaging is typically viewed as being either ____ (focused primarily on marketing) or ____ (focused on logistics)

A

– consumer
– industrial

55
Q

Containers used to group individual products are called ___

A

master cartons.

55
Q

Basic Pallet Master Carton Stacking Patterns

A

– block
– brick
– row
– pinwheel

55
Q

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.

A

ok

55
Q

3 Ties to information management systems.

A
  • Human readable.
  • Bar codes.
  • Radio frequency identification (RFID)
55
Q

Which Mode based on packaging protections?

  • Bouncing.
  • Potholes.
  • LTL: protect from mishandling and
    stacking
  • Second most expensive mode
A

Truck

56
Q

Which Mode based on packaging protections?

  • Handling damage.
  • Truck carriage dynamics.
  • Most expensive mode.
A

Air

56
Q

Which Mode based on packaging protections?

  • Switching requires secure
    stowage
  • Side-sway
  • Longer shelf life
  • Heat and cold
  • Third most expensive mode
A

Rail

56
Q

Supply chain globalization can be characterized using four strategies, which are

A

(1) no international strategy, (2) multi-domestic strategy, (3) global strategy, and
(4) transnational strategy.

56
Q

Which Mode based on packaging protections?

  • Dynamics in all directions.
  • Handling damage.
  • Longer shelf-life.
  • Least expensive mode.
A

Ocean

56
Q

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.

A

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

56
Q

t or f

Utility relates inversely to transport cost.

A

false.

“directly, not inversely”

56
Q

Essay practice

  1. Discuss and illustrate the economic justification for establishing a warehouse.
  2. Under what conditions could it make sense to combine private and public warehouses in a logistical system?
  3. Discuss and illustrate the role of warehouses in reverse logistics.
  4. Discuss the differences between rigid and nonrigid containers. Discuss the importance
    of load securing in unitization.
  5. In terms of basic handling, what is the role of a unit load?
A

57
Q

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.

A

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.

58
Q

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.

A

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.

59
Q

____ 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

A

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.

60
Q

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

A

Export irrevocable commercial letter of credit.

61
Q

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.

A

Bank draft (or bill of exchange).

62
Q

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.

A

Bill of lading

63
Q

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.

A

Combined transport document

64
Q

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).

A

Commercial invoice

65
Q

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.

A

Insurance certificate

66
Q

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.

A

Certificate of origin.

67
Q

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

A

No international strategy

68
Q

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

A

Multi Domestic Strategy

69
Q

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

A

global strategy

70
Q

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

A

Transnational Strategy

71
Q

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.

A

Exporting and Importing

72
Q

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.

A

Licensing and Franchising

73
Q

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.

A

International Joint Ventures (IJV)

74
Q

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.

A

Foreign Direct Ownership