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  1. Pros:
    May attain lower operating costs than private facilities due to economies of scale
    More flexibility in number and size of warehouses

    Potential for loss of some control over day-to-day activities
    Do not work as well for products requiring very customized storage conditions
  2. include any work that creates a greater value for customers.
  3. -Returns Management: Recalls or product that did not sell
    -Remanufacturing and Repair: Repairing/refurbishing equipment
    -Remarketing: Selling used equipment
    -Recycling: Returning product following its useful life with the objective of decomposing it into it component materials so they can be effectively reused
    -Disposal: for materials which cannot effectively be reused.
  4. -Spot-stocking
    -Full line stocking
    -Value-added services
  5. Consolidation and Break-Bulk reduce transportation cost by increasing the size of the shipments.
  6. -Receiving — Unloading the arriving vehicles

    -In-Storage — Moving goods within the warehouse for storage (transfer) or order selection (picking). Items may be moved to a staging area in preparation for shipping

    -Shipping — Verifying the order and loading the departing vehicles

    Typically, these activities require the use of material handling equipment, e.g., lift trucks, conveyors, etc.
  7. Warehouse Management Systems (WMS) integrate procedures and software support to standardize storage and handling work procedures

    -Discrete selection is when a specific customer's order is selected and prepared for shipment as a single work assignment
    -Wave or batch selection is when orders are processed through zones of the warehouse assigned to specific employees
  8. Storage provides direct benefit by accommodating seasonal demand and/or production:
    -Accommodates seasonal demand such as lawn furniture and toys
    -Accommodates seasonal production such as agricultural products

    Storage provides and inventory buffer, which allows production efficiencies within the constraints imposed by material sources and consumers.
  9. Pros:
    Control over warehouse activities, while leveraging warehousing expertise from the provider

    Due to nature of integration, cost of exit can be high
  10. Storage for basic inventory replenishment
    Focuses on quick movement
    Includes flow-through or cross-dock distribution
  11. Mixing combines inventory from multiple origins (like cross-docking) but also adds items that are regularly stocked at the mixing warehouse
  12. -Safety and maintenance issues must also be considered when planning warehouse designs
    -Accident prevention
    Comprehensive safety programs and training, accident investigation and follow up
    Environmental protection
    Spill kits and spill plans
    Scheduled maintenance of building, material handling equipment, and collision damage prevention
  13. -the warehouse functions to mix inventory assortments to meet customer requirements
    -Storage of products is held to a minimum
    -Storage of inventory is waste in the LEAN warehouse
  14. Public
  15. Storage for inventory held in excess of period for normal replenishment
    e.g., seasonal, speculative, or even commodities
  16. Assembly supports manufacturing operations

    -Assembly occurs when products or components from 2nd Tier suppliers are assembled by a warehouse located near the manufacturing plant
    -Common assembly processes are packaging and color customizing
  17. -Use private or contract warehouse to cover 75 percent requirement
    -Public facilities used to accommodate peak demand
  18. a place to hold or store inventory
  19. Economic benefits of warehousing occur when overall logistics costs are reduced:
    -Consolidation and break-bulk
    -Seasonal storage
    -Reverse logistics

    Service benefits are justified by sales improvements that more than offset added cost
    -Full line stocking
  20. -Private: Warehouse operated by the firm owning the product
    Building may be owned or leased

    -Public: Service company owns warehouse and hires out space and services
    Usually classed as
    General merchandise
    Special commodity
    Household goods and furniture
  21. Strategic warehousing offers manufacturers a way to reduce dwell time of parts and materials
    -Warehousing is integral to just-in-time (JIT) and stockless production strategies
    Requires strategically located warehouses across the globe

    An important goal in warehousing is to maximize flexibility
    -Respond to ever-changing customer demand
    Product assortments
    Value-added services
  22. Warehouse decisions that determine handling and storage efficiency:

    -Identify broad geography where an active warehouse meets service, economic and strategic requirements
    -Selection and number of retail outlets drives location of support warehouses
    -Final selection should be preceded by extensive analysis
  23. Storage plans should consider product velocity as a major factor in determining the warehouse layout.
    It is essential that products be assigned a specific locations in the warehouse called slots
  24. -Cross-docking
    -Customer returns
    -Home Delivery
    -Kan Ban
  25. -Contract warehousing combines elements of private and public operations
    -Usually a long-term relationship or contract between a firm and the warehousing operator

    -Long-term cost savings compared with public warehousing
    -Often a firm's employees will work alongside the contract warehouse's employees (e.g., "man-in-the-plant" concept)

    -Example: Novartis Pharmaceuticals contracted with DHL/Exel Logistics since 2008 for a dedicated facility to handle all finished product US warehousing & distribution
  26. is the positioning of inventory for seasonal or promotional demand
  27. -Network deployment is the combination of private, public and contract facilities used by a firm
  28. issues involve protection from pilferage and damage
  29. -Warehouses were once viewed as a necessary evil, used to coordinate product supply with customer demand
    -The explosion of the consumer economy after WWII saw the rise of distribution networks for consumer goods
    -Warehousing shifted from passive storage to strategic assortment
  30. Warehouse decisions that determine handling and storage efficiency
    -Site Selection
    -Product Mix
    -Material Handling
    -Warehouse Management System
    -Accuracy and Audit
    -Safety and Maintenance
  31. -Distribution centers
    -Consolidation terminals
    -Break-Bulk facilities
  32. -Products are received, selected, repackaged, and loaded for shipment w/o storage
    -Used with general merchandise & food
    -Enabled by conveyors & sortation equipment
    -Used in large distribution centers (800K to 1,200K sq.ft.)
  33. provides one-stop shopping capability for goods from multiple suppliers
  34. Active storage and extended storage
  35. 1.)Traditional Warehouses: Receiving, Put-away, Storage Operations, Picking and Shipping
    2.)Distribution Centers: Scheduled Cross-docking, Special Handling, Kitting Operations, Returns Handling, "Postponed" Manufacturing Steps and Other value added
    3.)Fulfillment Centers:
    Dynamic Cross-docking, Mixed Mode Fulfillment, Multi-channel including On-line Fulfillment, Distributed Order Management and Green Operations (e.g., end of product life disposition, recycling, reclamation)
  36. Objective is to:
    -Efficiently receive inventory
    -Store it as required
    -Assemble it into complete orders
    -Make a customer shipment

    Operations will therefore emphasize product flow
  37. -How many warehouses should be established?
    -Which warehouse ownership types should be used in specific markets?
  38. Warehousing contributes value in the logistics process
    -Traditional view
    -Contemporary view
  39. is typically maintained by annual physical counts or counting portions of inventory on a planned basis
    Cycle counting is the audit of selected inventory on a cyclic schedule
  40. are common to maintain safety, assure compliance to regulations and help improve procedures
  41. Pros:
    Full control over warehouse activities
    Flexible scheduling based upon business needs
    Not operated for profit, greater visibility to cost drivers

    May not be a company's core competency
    Company may not benefit from economies of scale
    Potential for less flexibility in facility configuration
  42. occurs when a warehouse receives a single large shipment and then breaks the shipment down into individual deliveries to multiple destinations
  43. occurs when a warehouse receives materials from a number of sources and combines them into exact quantities for a specific destination
  44. Cross-docking combines inventory from multiple origins into a pre-specified assortment for a specific customer
  45. Velocity: how fast the goods move
    Weight: how heavy is the product
    Special Storage Requirements: how large or small, does it require rack or bin storage
  46. Three basic types sorting:
  47. Handling and Storage