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47 True/False questions

  1. ConsolidationWarehouse 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

          

  2. Securityissues involve protection from pilferage and damage

          

  3. Service Benefits of WarehousingStrategic 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

          

  4. Typical List of Value-Added Servicesinclude any work that creates a greater value for customers.

          

  5. Extended Storage:Storage for basic inventory replenishment
    Focuses on quick movement
    Includes flow-through or cross-dock distribution

          

  6. Contemporary view:a place to hold or store inventory

          

  7. Warehousing Value-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
    Maintenance
    Scheduled maintenance of building, material handling equipment, and collision damage prevention

          

  8. Network deployment strategy requires answering two questions-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

          

  9. Full line stockingprovides one-stop shopping capability for goods from multiple suppliers

          

  10. Warehouse Designs-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
    Maintenance
    Scheduled maintenance of building, material handling equipment, and collision damage prevention

          

  11. Handling and Storage EfficiencyWarehouse decisions that determine handling and storage efficiency
    -Site Selection
    -Design
    -Product Mix
    -Expansion
    -Material Handling
    -Layout
    -Sizing
    -Warehouse Management System
    -Accuracy and Audit
    -Security
    -Safety and Maintenance

          

  12. Warehousing types evolved to accommodate dynamic aspects of logisticsHandling and Storage

          

  13. PrivatePros:
    Full control over warehouse activities
    Flexible scheduling based upon business needs
    Not operated for profit, greater visibility to cost drivers

    Cons:
    May not be a company's core competency
    Company may not benefit from economies of scale
    Potential for less flexibility in facility configuration

          

  14. Auditsare common to maintain safety, assure compliance to regulations and help improve procedures

          

  15. Warehouse Ownership Arrangements-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
    Refrigerated
    Bonded
    Special commodity
    Household goods and furniture

          

  16. Value-added services-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
    Maintenance
    Scheduled maintenance of building, material handling equipment, and collision damage prevention

          

  17. Break-bulkissues involve protection from pilferage and damage

          

  18. Warehouse operations involve two major activities:Handling and Storage

          

  19. Publicare common to maintain safety, assure compliance to regulations and help improve procedures

          

  20. Strategic Warehousing-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

          

  21. Seasonal StorageStorage 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.

          

  22. The Changing Role of the WarehousePublic
    Private
    Contract

          

  23. Consolidation and Break-Bulk Warehousing-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

          

  24. Slotting determines specific locations for the product based on:-Spot-stocking
    -Full line stocking
    -Value-added services

          

  25. Reverse logistics include activities supporting-Cross-docking
    -Customer returns
    -Home Delivery
    -In-transit
    -Kan Ban
    -Kitting
    -Labeling

          

  26. Active Storage:Storage for basic inventory replenishment
    Focuses on quick movement
    Includes flow-through or cross-dock distribution

          

  27. Inventory accuracyis 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

          

  28. Sorting: MixingAssembly 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

          

  29. Storage Alternatives Two classes:Active storage and extended storage

          

  30. Successful cross-docking is highly dependent on information technology-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.

          

  31. Network Deploymentoccurs when a warehouse receives materials from a number of sources and combines them into exact quantities for a specific destination

          

  32. Strategic warehousing can provide both economic and service benefits-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
    Refrigerated
    Bonded
    Special commodity
    Household goods and furniture

          

  33. ContractPros:
    Control over warehouse activities, while leveraging warehousing expertise from the provider

    Cons:
    Due to nature of integration, cost of exit can be high

          

  34. Site SelectionWarehouse 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

          

  35. Handling must optimize movement continuity and efficiency-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.

          

  36. Sorting: AssemblyMixing combines inventory from multiple origins (like cross-docking) but also adds items that are regularly stocked at the mixing warehouse

          

  37. Evolution of Strategic WarehousingStrategic 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

          

  38. Types of WarehousesPublic
    Private
    Contract

          

  39. The basic benefit of sorting is to reconfigure freight as it is being transported from origin to destination.-Use private or contract warehouse to cover 75 percent requirement
    -Public facilities used to accommodate peak demand

          

  40. Warehouse Management SystemsWarehouse 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

          

  41. Contract WarehousingStrategic 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

          

  42. Spot-stockingis the positioning of inventory for seasonal or promotional demand

          

  43. when warehouse utilization is not full throughout the yearHandling and Storage

          

  44. Traditional view:-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

          

  45. Sorting: Cross-dockingMixing combines inventory from multiple origins (like cross-docking) but also adds items that are regularly stocked at the mixing warehouse

          

  46. Warehouse Operations-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
    Maintenance
    Scheduled maintenance of building, material handling equipment, and collision damage prevention

          

  47. StorageStorage 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