Warehousing

Question 1

What are bulk materials?

Answer 1

Materials that are stored by weight or volume

Question 2

What are Discrete or Component Materials?

Answer 2

Materials that are stored by number of units

Question 3

What are Stock Keeping Units (SKU’s)?

Answer 3

The number of different types of product kept on stock

Question 4

What are Services in Warehousing?

Answer 4

Nothing to store but throughput is often measured in terms of Transactions or Tickets

Question 5

When does Pareto not work?

Answer 5

• When demand is random
• When goods must be handled FIFO (First in, first out)
• When there is a high peak seasonal demand
• In an ‘I’ form warehouse
  i.e. not a ‘C’ or ‘U’ form

Question 6

Specialist DC forms

Answer 6

• Consolidation warehousing
• Postponement warehousing
• Bonded warehouse

Question 7

What is Consolidation warehousing?

Answer 7

Pulls together shipments from a number of sources in the same geographic area and combines them into larger and more economical shipping loads.

Question 8

What is Postponement warehousing?

Answer 8

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.

Question 9

What is a Bonded warehouse?

Answer 9

A customs-controlled warehouse for the retention of imported goods until the duty owed is paid.

Question 10

What are warehousing costs?

Answer 10

Rent, insurance, waste