Term
| 1. What are the four economic benefits of a warehouse (pg 248) |
|
Definition
A. receiving, shipping, handling, and storage
B. shipping, receiving, assortment, and value added services
C. consolidation, sorting, seasonal storage, and reverse logistics (CORRECT)
D. none of the above |
|
|
Term
| 2. When a firm uses cross‐docking, inventory (pg 249) |
|
Definition
A. must be staged for shipping
B. is literally moved from receiving into a delivery truck (CORRECT)
C. always is tagged for shipping
D. is considered a short movement freight |
|
|
Term
| 3. “Slotting” a warehouse means that products are (pg 255) |
|
Definition
A. positioned for value added services
B. assigned a specific warehouse location (CORRECT)
C. placed in a pick line location
D. placed into a replenishment status |
|
|
Term
4. A company which has limited experience in warehousing and
needs to establish temporary warehouses in multiple cities
would likely use (pg 258) |
|
Definition
A. private warehouses
B. common warehouses
C. contract warehouses
D. public warehouses (CORRECT) |
|
|
Term
5. When a combination of customer orders are picked
simultaneously based on a specific requirement, this is called (pg
263) |
|
Definition
A. batch selection (CORRECT)
B. discrete selection
C. combination discrete selection
D. combined selection |
|
|
Term
6. One function of a distribution warehouse is consolidation,
which means the facility is being used to (pg 248) |
|
Definition
A. group small inbound shipments into one larger outbound shipment (CORRECT)
B. collect products/packaging materials for disposal
C. hold safety stock inventory
D. break large shipments into smaller storage quantities |
|
|
Term
| What is the difference between the views of traditional and contemporary warehousing? |
|
Definition
• Traditional: Warehouse viewed as a place to hold or store inventory
• Contemporary: warehouse functionality is more properly viewed as mixing inventory assortments to meet customer requirements. |
|
|
Term
| Why was the need for storage to support stable manufacturing reduced? |
|
Definition
| • Improved forecasting and production scheduling techniques. |
|
|
Term
| How did customers’ increasing demand for assortment affect the view of warehouses? |
|
Definition
•Made it more difficult to maintain purchasing and transportation economics when buying direct from suppliers. Led to the shift towards distribution centers (strategic assortment)
the focus on warehousing shifted from passive storage to strategic assortment. Distribution center became widely used throughout industry to capture this dynamic aspect of traditional warehousing. |
|
|
Term
| What were the 2 advantages of receiving mixed product shipments? |
|
Definition
1. Logistical cost is reduced because an assortment of products can be delivered while taking advantage of consolidated transportation.
2. Inventory of slow-moving products can be reduced because of the capability to receive smaller quantities as part of a larger consolidated shipment. |
|
|
Term
| What are the 4 basic economic benefits of warehousing? |
|
Definition
1. Consolidation and break-bulk
2. Sorting
3. Seasonal storage
4. Reverse logistics |
|
|
Term
| What is the benefit of consolidation and break bulk? How does a warehouse help in this effort? |
|
Definition
• Reduce transportation cost by using warehouse capability to group shipments. Benefits of consolidations are the realization of the lowest possible freight rate, timely and controlled delivery, and reduced congestion at a customer’s receiving dock.
• The warehouse enables both the inbound movement from origin and the outbound movement to destination to be consolidated into larger size shipment. |
|
|
Term
| What are the 3 types of sorting? |
|
Definition
1. Cross-docking: Combines inventory from multiple origins into prespecific assortment.
2. Mixing
3. Assembly |
|
|
Term
| Why is seasonal storage needed? |
|
Definition
| 1. To accommodate seasonal production or demand. Ex. toys and agricultural products |
|
|
Term
| What are the 5 activities included in reverse logistics? |
|
Definition
1. Returns management
2. Remanufacturing and repair
3. Remarketing
4. Recycling
5. Disposal |
|
|
Term
| What are the 3 service benefits of warehousing? |
|
Definition
1. Spot-stocking
2. Full line stocking
3. Value-added services |
|
|
Term
| What are the seasonal characteristics of spot-stocking? |
|
Definition
| 1. Select inventory is positioned or spot-stocked in a local market warehouse in anticipation of responding to customer need during the critical sales period. |
|
|
Term
| What is the difference between full line and spot stocking? |
|
Definition
| 1. Degree and duration of warehouse utilization. Full line improve service by reducing the number of suppliers that a customer must logistically deal with. |
|
|
Term
| What is it that value added services typically do? |
|
Definition
| 3. Typically change the physical features or configuration of products so they are presented to customers in a unique or customized manner. |
|
|
Term
| What is the relationship between postponement and value added services? |
|
Definition
| minimize risk and reduce in total inventory.4. Many times you’ll postpone something like packaging which will result in reduced risk and total inventory reduction |
|
|
Term
| What are the 2 warehouse operations? |
|
Definition
|
|
Term
| What is meant by movement continuity? |
|
Definition
| 1. It is better for an employee using handling equipment to perform longer moves than to undertake a umber of short handlings to accomplish the same overall inventory move. Longer warehouse handling movements are preferred. |
|
|
Term
| What is the first handling activity of a warehouse? |
|
Definition
|
|
Term
| What is the benefit of receiving unitized loads? |
|
Definition
| 3. Ability to rapidly unload and release inbound transportation equipment |
|
|
Term
| What are the typical transfer movements in a warehouse? |
|
Definition
1. The merchandise is initially moved from the receiving area to a storage location
2. Transferred from storage to order selection or picking area.
3. From selection area to shipping staging area. |
|
|
Term
| What 2 activities are required prior to shipping? |
|
Definition
order verification
transportation equipment loading |
|
|
Term
| What are the important characteristics of a slotting plan? |
|
Definition
• Products be assigned a specific location on the basis of individual characteristics.
consider product velocity, weight, and storage requirement |
|
|
Term
| Why is velocity important in determining product positioning and slotting? |
|
Definition
| • High volume product should be positioned in the warehouse to minimize movement distance. |
|
|
Term
| What other factors should be considered in the warehouse storage plan? |
|
Definition
• Product weight and special characteristics
• Velocity. You want to minimize movement |
|
|
Term
| What is the difference between active and extended storage? |
|
Definition
• Active: Storage for basic inventory replenishment. Quick movement, flexibility, includes flow-through or cross-dock distribution (uses minimal or no inventory storage)
• Extended: When inventory is held for periods in excess of that required for normal replenishment of customer stocks. Focuses on maximum space utilization with |
|
|
Term
| Under what circumstances would you want to utilize an extended storage strategy? |
|
Definition
| • Seasonal items, erratic demand items, product conditioning(ex. Ripening bananas), speculative purchases, and discounts |
|
|
Term
| What is the difference between a private and public warehouse? |
|
Definition
• Private: Warehouse is operated by the enterprise that owns the merchandise handled and stored in the facility (building may be owned or leased)
• Public: warehouse is operated as an independent business offering a range of for-hire services, such as storage, handling, and transportation |
|
|
Term
| What benefits does a firm gain by having a private warehouse? |
|
Definition
| • Control, flexibility, cost, and a range of intangibles |
|
|
Term
| Why do many firms utilize a public warehouse? |
|
Definition
| • Lower operating costs, shared overhead among clients, public warehouses have the potential to share scale economies since the combined requirements of users can be leveraged. May also leverage transportation. |
|
|
Term
| Why are contract warehouses classified as a combination of private and public? |
|
Definition
| • A long term contract will usually result in lower total cost than a public warehouse. At the same time, a contract warehouse can provide flexibility, scalability, and economies of scale. |
|
|
Term
| Why do firms utilize a combination of the 3 warehouse types? |
|
Definition
| • Differentiated by customer and product |
|
|
Term
| What are all of the factors that must be considered when targeting a specific site for a warehouse? |
|
Definition
• Warehouse location
• Building site must be identified—service availability and cost, land cost
• Procurement cost, setup, operating expenses, transport access, utility hookups, taxes, and insurance rates
• Soil, proper water drainage. |
|
|
Term
| Why is a product mix analysis important in warehouse design? |
|
Definition
| • The design and operation of a warehouse are both dependent on the product mix. Should look at sales, demand weight, cube, and packaging. This will help determine space design and layoyt of the warehouse. |
|
|
Term
| What is the basic driver of warehouse design? Why must it be selected early? |
|
Definition
• Product movement
• Once it’s implemented it’s hard to change. |
|
|
Term
| What is the major purpose of layout design? |
|
Definition
| • To facilitate product flow |
|
|
Term
| What must be considered if pallets will be used? |
|
Definition
| o Size. Regardless of what size is chosen management should select one pallet size for the warehouse. |
|
|
Term
|
Definition
| o The placement of specific products in selected pallet locations. |
|
|
Term
| What is the difference between a pick area and storage area? |
|
Definition
o Picking area or selection area: minimizes the distance order pickers must travel when assembling an order. Customer orders are assembled
o Selection area is replenished by the storage area. |
|
|
Term
| Why is an accurate estimation of size important? |
|
Definition
| • Can result in overbuilding. Also can result in too small. |
|
|
Term
| What are 2 reasons to implement a WMS? |
|
Definition
| • Standardize work procedures and encourage best practices. |
|
|
Term
| What is the difference between a discrete and batch order picking? |
|
Definition
o Discrete selection: a specific customer’s order is selected and prepared for shipment as a specific work assignment
o Batch: Can be coordinated by an area of the warehouse wherin all quantities of all products required to complete all customer orders are selected at one time. |
|
|
Term
| What are the core functionality of a WMS? |
|
Definition
| o Receiving, put-away, cycle-count, pick, task management, quality analysis, replenishment, pack, opportunistic cross-dock, inventory control, work order management, ship. |
|
|
Term
| What is a YMS? How does it help in faster inventory turnover? |
|
Definition
| o Yard management is part of TMS (transportation management system)—refers to the process of managing the vehicles and the inventory within vehicles while parked in yard. |
|
|
Term
| What is a cycle count? What are 3 bases for scheduling a count? |
|
Definition
• The audit of selected inventory on a cyclic schedule.
1. Specific area of the warehouse
2. Frequency of movement
3. Turnover |
|
|
Term
| What are the 3 reasons for warehouse security? |
|
Definition
1. Protection against merchandise pilferage
2. Deterioration
3. Any form of operational disruption |
|
|
Term
|
Definition
| • Theft by employees and thieves as well as from riots and terrorist-related disturbances. |
|
|
Term
| Why must security be concerned about internal theft? |
|
Definition
|
|
