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Logistics Module 7: Warehousing
Terms in this set (67)
As inventory grows, ____ costs will grow.
1) _____ ____ costs
2) ____ costs
3) ____ ____ costs
4) _____/____ costs
5) ___ ____ costs
6) ______ costs
customer service, transportation, inventory carrying, information/ordering, lot quantity, warehousing
Value of warehousing includes:
1) ____ _____: you can produce in large lots, storing product till customers need it
2) _____ ____: ship full truckloads
production economies, transportation economies
____ helps get the product where it needs to be when it needs to be at the lowest possible ___.
Roles of a ____:
1) Quick ____ ____ by positioning items close to final markets
2) _____ opportunities to reduce the costs of ____
3) _____ for inventory; ____ against changes in market conditions
4) Product ______: we can ship out a mixture of product to stores
warehouse, lead times, consolidation, transportation, storage, hedge, mixing
The goal of warehosuing: reduce total ____ costs while maintaining the desired level of ___ ____
logistics, customer service
As # of warehouses increase, we will increase ___ ____.
Traditional warehouse operations:
1) ___: receiving and unloading, storage placement
2) ___: order selection, final processing/packaging, checking/verifying order, consolidating and staging, loading/shipping
3) ____: administrative, facility maintenance, euipment maintenance
arrival, shipment, always
Measuring warehouse performance: ____ of workers, _____ of operation (is it correct?), and ____ (metrics include days missed, # of injuries, days injury free)
productivity, quality, safety
Warehouse productivity measures include:
1) ____ per hour ___/___
2) ____ per hour
3) ____ per hour
4) ____ per order
5) ____ as a ____ of ____
orders, packed/picked, lines, items, cost, cost, %, sales
Orders per hour, lines per hour, and items per hour are all calculated by dividing by ___ ____ _____ ____.
total warehouse labor hours
Benefits of warehousing include:
1) added ____ ____
2) ____ products at the DC
3) ___-_____ flow through center
4) ______: from TL to LTL for last leg of trip
form utility, mixing, cross-dock, breakbulk
One benefit of warehousing is the added ____ ____ it can provide. This occurs through means of ____ (differentiate product based on demand signal) and ____ ____ (tailored with color, etc.). Warehouses are also able to support ____ as well as ____ preferences/differences.
form utility, postponement, mass customization, promotions, regional
One type of warehousing is there for ____ ____. THhis could mean ____ shipments from suppliers into distinct shipments for manufacturers.
manufacturing support, consolidating
Advantages of manufacturing support warehouses include:
1) reducing the number of ____ to the plant (maintains ____ efficiencies)
2) The exact ____ of components can be sent with each delivery based on inventory requirements
deliveries, operational, mix
One type of warehouse is a ____ warehouse: this takes full container shipments from incoming sources and then ____ different materials to meet the customer requirements
A good example of a mixing warehouse is a ____ distributor. They will provide an assortment for customers. Applauded for ___ ____.
food, customer service
A type of warehouse is a ____ warehouse where the warehouse receives product from many locations and _____ these incoming shipments to send outbound. These types of WH are able to take advantage of ____ economies. Ex: warehouse that receives shipments from many small farmers
consolidation, combine, transportation
A type of WH is a ____ warehouse, where the WH recieves few ____ deliveries then ____ them down for many different customers Ex: freight forwarders
breakbulk, large, breaks
An example of a _____ _____ WH would be an ___ ___ ___ terminal. They receive full truckloads then break them down into individual deliveries.
break bulk, end of line
___ _____ warehouses function like airport hubs. Many small deliveries coming in then shipped elsewhere in larger deliveries. Not meant to be ____. Product quickly enters and leaves.
cross dock, stored
In cross-docking, there is no _____-term storage. This method allows for ____ ______. Ex: Walmart has prodcts enter from suppliers then mixes them to go to their stores.
long, product mixing
A type of WH includes a _____ (____) WH. By bringing products into these WH's, no ____ must be payed immediatly. ___ is not paid until product leaves. Limitation might be that there is a ___ year max storage term.
customs, bonded, duties, duty, 5
Basic warehouse decisions to be made include:
1) ____: _____ or ____?
2) ____ of WH's as well as ____
3) _____, _____, and ____ of facility
4) _____ (what items are stocked? what is the placement?)
5) _____/____ equipment used?
ownership, private, public, number, location, design, layout, size, utilization, storage, handling
In terms of making WH ownership decisions, there are three types:
1) ____ WH: operated by a third party, shorter-term constracts
2) _____ WH: operated by third party, longer-term constracts
3) ____ WH: company owns their own WH
public, contract, private
Public warehouses are operated by a ____ party. THey typically involve ____ contracts, ____ costumization, and serve ____ customers at once.
third, shorter, less, multiple
Contract warehouses are ____ party managed and involve ___ term contracts, ___ levels of customization, and typically only ___ client.
third, longer, high, one
Private WH are owned by the ____.
Advantages of public warehouses:
1) conservation of ____ (no capital tied up in facilities)
2) Easily meet peak requirements by adding more ____
3) economies of ___ if small ops.
4) ____: not locked into long-term lease
5) Exact _____ costs
6) Possible ___ advantages
7) Won't distract from core ____
capital, capacity, scale, flexibility, warehousing, tax, competencies
Public WH disadvantages:
1) ____ challenges
2) lack of _____ in services
3) difficult to repsond quickly to ____ request
communication, specialization, special
Private warehouses advantages:
1) ____: focial org. operates directly, better control over ____
2) increased _____ for org's specific needs
3) ___ advantages for ___ volume
4) _____: sense of permanent presence... ex: in community you have a presence bc your facilities are there
control, employee, flexibility, cost, large, intangibles
Private WH disadvantages:
1) less ____ to change facility location or size
2) ___ tied up in facilities
Special physical control:
Customer service required:
Multiple use needed:
As throughput ____, we will go from _____ to ____ to ___ to ____ WH. Private ____ rather than ____ may be ideal.
increases, public, contract, leased, private, automation, manual
Cost of lost sales will ____ as we ____ the # of WH's.
The sqaure root of N rule is used to determine how ____ will change to account for ____ in demand as ____ of ___ changes.
inventory, uncertainty, number, locations
Squae root of N rule?????
When we increase the number of warehosues in a system, the "domain" of each facility becomes ____. This will diminish the ____ effect and ____ uncertainty that each facility experiences.
smaller, portfolio, increases
____ _____ refers to choosing the locations for DC, WH, production fcilities, etc.
Factors that can influence facility locations decisions include:
1) ___ considerations
2) ____ ____ expectations
3) location of ___ or ____ markets
cost, customer service, customer, supply
When service levels become unacceptable, this is generally when we add ____, despite the fact that this might be associated with ____ returns. ____ packages can help to determine the correct #.
facilities, diminishing, software
____ ____ occur as we add more facilities. Ex: increase from 2 to 5 fcilities saves 1 day lead time. Moving from 5 to 10 facilities saves only ____ a day of lead time.
diminishing returns, half
As we add additional facilities, our ____ costs increase, but cost of ____ will decrease.
When determining the right number of warehouses, _____ ___ cost, ____ cost, and ____ ___ cost are constantly increasing. _____ costs and cost of ____ ____ will descrease to a point. Total ____ costs will only decrease to a point before it starts to go up again!!! This is essential to understand.
inventory carrying, warehousing, order processing, service, transportation, poor service, logistics
Locational determinants for warehouse placement include:
1) ____ climate
2) availability of ____
3) proximity to ____
4) quality of ____
5) ___/____ development incentives
6) ____ networks
7) ____ costs/utilities
8) company ____/preference
labor, transportation, markets, quality, taxes/industrial, supplier, land, history
Locating suppliers using grid???
Center of gravity model to help us find distance ????
General WH layout and design principles:
1) use ____-story facility
2) use ____ line or ___-____ of goods
3) use efficient material ___ equip.
4) use effective ___ plan
5) minimize aisle ____ (but do not constrain flow)
6) Make maximum use of facility ____
one, straight, direct-flow, handling, storage, space, height
WH size is very important to consider as it will be a soft constraint for the next ____+ years. Must realize ____ requirements over time. Factors to consider include ____ trends: tied to trends in sales territories served by WH. Must also consider ___ needs: receiving and shipping, order picking and assembly, storage space, recouping, office space, etc.
20, inventory, demand, space
WH ___ decisions are very important as we consider which items to ____.
WH utilization must consider:
1) ____ characteristics. One strategy is stock fast-moving items in field WH and centralize slow movers.
2) ANother factor to consider is ____ ____ (ex: milk and ligher fluid).
3) ANother factor is the compatability of the product with the materials ____ equipment (specialized equip. vs. product flexibility trade-off).
4) Appropriate ___ control availability.
5) ____ ____ requirements.
demand, storage compatibility, handling, climate, customer service
_____ WH decisions:
1) minimize ____ materials are moved in WH
2) order ___ method
3) order-____ products: place items ordered together near each other
4) _____: popular items near shipping area
5) ____/handling: place larger items near inbound door
utilization, distance, retrieval, common, popularity, size
Materials _____ operations involve:
1) ____ the vehicle
2) ____ placement
3) order ____
4) ____, consolidating, and containerization
5) ____ the vehicle
handling, unloading, storage, picking, staging, loading
Objectives of materials ____:
1) reduce the # of times goods are ____
2) minimize ____ into/out of WH
3) increase WH usable ____
4) ____ heavy-labor movements
5) effective materials ____ can contribute to a cost minimization program by increasing ____
handling, handled, movement, capacity, automate, handling, productivity
Materials handling system design:
1) determining equipment needed to ____, ___, and ____ material
2) levels of ____/mechanization/____
(mechanization is movement that combines ___ and ____ ex: forklift)
move, store, control, labor, automation, humans, machines
Examples of shipping ____ include pallets, slip sheet, drums, etc.
Product flow in a highly automated warehouse: freight is received and put away--> cartoons travel through facility on a ____ system --> ____ scanner identifies products and sends them to appropriate lane--> cartons are loaded in trailer and _____
coveyer, barcode, shipped
Benefits of conveyors include:
1) lower ___ costs for repetitive tasks
2) ____ performance and quality
3) integrated material flow controls
4) efficiently moving product between ____
5) accumulation without line pressure
6) merging and diverting for ____ workload
7) latest controls ____
handling, high, processes, balanced, technology
Automated ____ _____ equipment can be appropriate in some situations. It is conputer controlled and runs on plant floor without the need of an onboard operator. They have defined paths.
Information flow in a WH is typically referring to a _____ ____ ____ (WMS). It has a varity of functions:
2) ____ ____
warehouse management system, receiving, order picking, verification, shipping
Benefits of a warehouse _____ system include:
1) enhanced ___ capturing and sharing for service improvements, reduced errors, only promises that can be met are extended
2) improved order ____ (what's going on?)
3) improved ____ of WH activity (what's/where is it going on?)
4) improved ____ of internal and external ___
5) improved planning and optimization of asset ____
management, data, picking, visibility, tracking, inventories, utilization
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