chap 9 supply chain
Break-bulk
warehouse operation that divides full truckloads of items from a single source or manufacturer into smaller, more appropriate quantities for use or further distribution
Public Warehouse
A business that provides storage and related warehouse functions to companies on a short or long term basis. Ex: a hotel for inventory
Contract Warehouse
A type of public warehouse that handles the shipping, receiving, and storage of goods on a contract basis for a fee. Ex: renting an apartment for inventory
Which transportation mode is the fastest over long distance?
Air
Types of Warehouses
Break-bulk, cross-docking, and consolidation (BB CD C)
The transfer of goods from an inbound carrier to an outbound carrier, without the goods being put away into storage is known as
Cross docking
4PL
Fourth Party Logistics is an interface between the client and the multiple logistic service providers
ICC Termination Act (1995)
ICC was eliminated
Which warehouse location strategy would most likely be used if a company has many more suppliers than customers?
Product Positioned Strategy
What type of warehouse network strategy would you be using if you positioned your warehouse close to the supply source to collect goods and consolidate before shipping products out to customers?
Product posistioned
Which warehouse ownership type provides the most flexible contract terms?
Public Warehouse
3PL
Third Party Logistics Company is an outsourced provider that manages all of an organization logistics requirements for a fee
Which transportation has the most accessibility?
Truck
Private Warehouse
a storage facility that is owned by the company that owns the goods being stored in the facility. Ex: buying a house for inventory
Interstate Commerce Act (1887)
created the ICC
The US transportation industry remains mostly
deregulated
Modes of Transportation
truck, rail, pipeline, air water
Air
fastest and most expensive mode of transportation
Rail
is slow and inflexible but has the most capability (most capability)
Water
is slow, inflexible, and inexpensive; is primarily used for heavy, bulky, and low value materials
Truck
most flexible mode of transportation (most accessibility)
Pipeline
most reliable and lowest per unit cost
Outbound Logistics
moving finished goods to customers
Inbound Logistics
moving goods/materials from supplier to buyer
Primary Functions of a Warehouse
picking, packing, receiving, shipping, storage
Warehouse Ownership Types
private, public, contract (PPC)
Carrier
refers to the company that transports the goods
Mode
refers to the way in which goods are transported
Secondary Functions of a Warehouse
repackaging, assembly operation, quality inspection (RAQ)
5 R's of Reverse Logistics
returns, recalls, repairs, repackaging, recycling
Cross-docking
supplier to sorting area o customer; basically takes the materials from incoming trucks and placed them directly on outbound trucks with little to no storage in between to save space
FOB Destination requires
that the supplier legally retains ownership of the product being shipped until it reaches the destination
Warehouse
the facility used to store
Warehousing
the function that allows a company to store
Reverse logistics involves
the process of moving a product from the point of consumption back to the point of origin to recapture value or ensure proper disposal
Products have little value to the customer until
they are moved to the customer's point of consumption
Consolidation
warehouse operation that receives products from suppliers, stores them, and combines them with similar shipments for further distribution
Intermediately Positioned Strategy
warehouses set up with equal customers and suppliers
Product Posistioned Strategy
warehouses set up with few customers and more suppliers (PPFCMS)
Market Posistioned Strategy
warehouses set up with few suppliers and more customers (MPFSMC)