Seance 9 :

Question 1

Logistic management

Answer 1

The effective forwards and reverse flow and storage of goods services between the point of origin and the point of consumption in order to meet customers requirements

Question 2

Cross docking

Answer 2

Is a specific way do transhipment. In contract to order picking (when the customer goes to pick up sites

Question 3

Benefits of decentralization :

Answer 3

Reduction in CO2 émission while maintaining total costs at the same level

Question 4

Square root law

Answer 4

A rule of thumb, stating that:

safety stocks can be reduced by the square root of the nb of distribution centres

—> centralization of distribution centers can lead to a reduction of 68% of the safety stock requirement :

Sc= 0.32 Sd

Question 5

Wharehousing

Answer 5

Stockage

Inventory management :

Goals:
independence and flexibility
Mitigate the pb of delays

Costs:
Ownership costs
Costs of out of stock and obsolescence

Question 6

Strategies for inventory optimization :

Answer 6

• JIT, postponement
• redesigning flow architecture: centralization, specialization
• reorgznising flows : cross-docking, distribution centers

Question 7

Stock turnover

Answer 7

Global D/average inventory level

Question 8

Coverage rate

Answer 8

Is the time the average stock is able ton cover tu average D

Question 9

Pareto Law (ABC analysis)

Answer 9

It often appears that 20% of items accounts for 80% of sales
—> is helps to determine the relative importance of stocks: critical items

A: few items (20%), high value (80%)
B: average quantity of items (30%), 15%
C: lots of items (50%), little value (5%)

—> A has to be controlled to avoid out of stock
Safety check is important

Question 10

Order point system :

Answer 10

A system in which a purchase order is automatically placed hand the number of units on hand of an item falls to order point

OP= D slt + Security stocks
Average demand during the supply + security stocks

Question 11

Periodic replenishment please

Answer 11

An order is placed regularly, at each revision time T. The quantity to order is calculated to reach the replenishment level

—> we have to calculate the periodicity
T= 1/N

Question 12

Economic order quantity

Answer 12

Determines the optimal order quantity on the basis of ordering and carrying costs

Question 13

The Wilson’s optimum

Answer 13

Economic order quantity = square root of (2DL/h)

L: fixed ordering cost
h: annual carrying cost per unit