SCM330 Test 1: Chapters 1, 2, 4 and 5, SCM 330-Test #1, Warehouse Management, Warehouse Activity Profiling, SCM 330 Quiz 3,4,5

What is ABC analysis

The idea to find out which SKUs matter, ranking, interest in skewness of distribution -A (small fraction of skus, most action) -B(moderate importance) -C(bulk of SKU's but small portion of activity)

True

The major advantages of stock-to-picker small item picking systems include easier supervision and the elimination of travel time for the order picker.

Stand-up Counterbalanced Truck

The most common type of forklift equipment, counterbalance forklift trucks feature forks that protrude from the machine's front. There are no outraging legs or arms.

Receiving process

The process of receiving, checking and marketing incoming goods or materials and routing them to storage or the sales floor.

Walkie Straddle Fork Truck

The straddle design refers to mostly obsolete trucks whose outriggers are outside the width of the rest of the machine for better load stability. The outriggers must go under the pallet, thus making floor storage in the first level of racks impossible. To address that, straddlers have been replaced with reach trucks with horizontally moving masts or carriages with a pantograph design.

Slip Sheets

Thin pallet-sized sheets made of plastic, heavy laminated Kraft paperboard, or corrugated fiberboard used in commercial shipping.

Third-party Logistics (3PL)

Third-party logistics provider offers outsourced logistics services, which encompass anything that involves management of one or more facets of procurement and fulfillment activities.

4 TF: A naive forecast for Sept sales of a product would be equal to the sales in Aug.

True

T/F Quality function deployment refers to both determining what will satisfy the customer and translating those customer desires into a target design

True

T/F Rapidly developing products and moving them to the market is part of time-based competition

True

T/F To attract and retain global talent, and to expand a product's life cycle, are both reasons to globalize.

True

T/F the "make-or-buy" decision distinguished between what an organization chooses to produce and what it chooses to purchase from suppliers

True

True

Zone picking is often used to reduce or eliminate warehouse congestion.

Cube utilization

% of available storage cube that is occupied

Location utilization

% of available storage locations that are occupied

Name a few considerations in activity analysis

- Seasonality -Mixed picking -Patterns of work

Typical Objective in warehouse design

-Minimize Total Cost -TC= Building cost+ material flow cost

Statistical Analysis

-Requires 3-12 months of data -master file -representative set of customer orders

Product Families

-SKUs with implications for storage and handling -products that are ordered together -ex, haircare, dental, shaving

Pareto Curves can be useful for determining

-patterns of work -sku popularity

4 Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

1

True

A tote is essentially a returnable and reusable shipping carton.

Sit-down Counterbalanced Truck (Forklift)

A vehicle with a pronged device in front for lifting and carrying heavy loads. Sit-down counterbalanced trucks work well for long-run operations with very few on and off vehicle requirements.

Block stacking advantages and disadvantages

Advantages: Inexpensive Easy (low effort) to implement Fast (short lead time to prepare and execute) Great flexibility Disadvantages: Limited to stackable products Temptation to overstock leading to product damage Does not support struck FIFO Honeycombing Low height utilization in tall building compared to racks

Mobile Racks

Also known as storage systems or storage units, can be used in your home and workplace to store a large number of things in an organized manner. These mobile racking systems are usually placed on wheels or rollers for better portability.

Pneumatic Tire Truck

Are similar t your regular car or truck tired, and are most commonly used outdoors. There are two types, solid pneumatics and air pneumatics. The wire pneumatics are filled with air, while the solid pneumatics are made of rubber and more puncture proof.

Case Flow Racks

System designed for maximizing depth space, case flow uses a conveyor that is slightly inclined to make vases or totes move easily along a sloped plane.

True

The advantage of mezzanine storage is that nearly twice as much material can be stored in the original square footage, but it must be compared with the costs to service the upper level of the system to justify this advantage.

Double-Deep Reach Truck

The double reach truck has deeper access into the racking system, letting a forklift operator load/unload static pallets on both racks

Honeycombing

The empty space that results by storing only one item in the storage area. Honeycombing most often occurs as cases or pallets are removed from the storage area. It can also occur upon receipt of the product if there is not enough to completely fill the lane or pick position.

SWOT analysis refers to

Strengths, Weaknesses, Opportunities, Threats

Conceptual Definition of a Warehouse

A site for storage and throughput of objects or data

Direct Putaway

Directly to storage, no stop on the dock. Also, directed by warehouse management system (WMS).

Counterbalance lift trucks

back of truck stabilized to carry loads and lift loads, fork attachments 11 to 12 aisle

Which of the following does not represent competing on response?

based on providing uniqueness

Hybrid trucks

cab lifted with the load 60 ft. high

4 Which of the following values of alpha would cause exponential smoothing to respond the slowest to forecast errors?

Pick the lowest number

What is activity profiling

careful measurement and statistical analysis of the warehouse activity to improve design and operations

Name two methods of warehouse activity profiling

1. ABC analysis 2. Statistical Analysis

1 What are the ten critical management decisions?

1. Design of goods and services 2. Managing quality 3. Process and capacity design 4. Location strategy 5. Layout strategy 6. Human resource and job design 7. Supply chain management 8. Inventory management 9. Scheduling 10. Maintenence

4 What are the 7 steps in forecasting?

1. Determine the use of the forecast 2. Select the items to be forecasted 3. Determine the time horizon of the forecast 4. Select the forecasting model(s) 5. Gather the data 6. Make the forecast 7. Validate and implement the results

What are the four ways a manager can organize for product development?

1. Historically 2. A champion 3. Team approach 4. Japanese "whole organization" approach

What are the 7 aspects to Quality Function Development?

1. Identify customer wants 2. Identify how the good/service will satisfy customer wants 3. Relate customer wants to product hows 4. Identify relationships between the firm's hows 5. Develop importance ratings 6. Evaluate competing products 7. Compare performance to desirable technical attributes

1 What are the four reasons we study OM?

1. OM is one of the three major functions (marketing, finance, and operations) of any organization 2. We want and need to know how goods and services are produced 3. We want to understand what OM managers do 4. OM is such a costly part of an organization

4 A forecasting method has produced the following over the past 5 months. What is the mean absolute deviation? Actual: 10, 8, 10, 6, 9 Forecast: 11, 10, 8, 6, 8 Error: -1, -2, 2, 0, 1 |Error|: 1, 2, 2, 0, 1

1.2

4 Given an actual demand this period of 103, a forecast value for this period of 99, and an alpha of .4, what is the exponential smoothing forecast for next period?

100.6

4 Demand for a certain product is forecast to be 800 units per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the January monthly index is 1.25. What is the seasonally-adjusted sales forecast for Jan?

1000 units

Pallet

A portable platform on which goods can be moved, stacked, and stored, especially with the aid of a forklift (2-way pallet, 4-way pallet, CP-1 pallet, Plastic pallet).

4 John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month's demand, a weight of 3 to the demand two months ago, and 1 to demand three months ago. If sales amounted to 1,000 pancakes in May, 2,200 in June, and 3,000 in July, what should the forecast be for August?

2,511

4 A time-series trend equation is 25.3+2.1x. What is your forecast for period 7?

40

4 What is the forecast for May using a 4 month moving average? Nov. - 39 Dec. - 36 Jan. - 40 Feb. - 42 Mar. - 48 Apr. - 46

44

True

A pallet jack is a motorized or non-motorized vehicle equipped with forks to transport pallets at floor level.

Which would be a good example of competing on low-cost leadership?

A firm produces its product with less raw material waste than its competitors

False

A major advantage of single order picking is picker knowledge development.

Drive-Through Racks

Are used with forklifts and pallet jacks. Systems let lift trucks enter from either side to access pallets. The loads are supported by rails that are attached to upright frames. Lift trucks can be driven through the upright to access the pallets.

Dock Design Considerations

Automatic dock levelers variations in truck floor heights Dock seals or shelters to proctologist's from outside weather, reduce hear loss, and prevent unauthorized entry Dock lighting illuminate entire interior of trailer

1 Which operations function at a manufacturing facility strives for the efficient use of machines, space and personnel?

industrial engineering

Typical cross-docking candidates:

Backorders Special orders Opportunity cross-dock

Lift trucks

Basis for significant warehouse productivity increases compared to manual labor based operations

Double-Deep pallet racks

Better storage density Expensive lift trucks Slower handling More honeycombing

True

Picker Zoning refers to assigning individual order pickers to serve only a limited number of stock items instead of routing them through the entire stock layout.

Types of pallet storage

Block stacking Stacking frames Selective pallet rack (single-deep) Double-deep rack Drive-in rack Drive-through rack Pallet flow rack Push-back rack Mobile pallet racks

True

By increasing the number of orders picked by an order picker during a picker tour, the travel time per pick can be reduced.

False

Picker accountability is an issue in warehousing, something that is only overcome by single order picking practices.

Straddle reach trucks

Can reach for depths, pantograph or sissors

1 Which of the following is NOT a characteristic of services

standardized product

Blind receiving

Checker counts received quantity first without referring to accompanying paperwork

Truck Classification (OSHA)

Class 1 - electric counterbalance rider trucks Class 2 - electric narrow aisle and very narrow aisle trucks Class 3 - electric hand trucks Class 4 - internal combustion counter-balanced trucks (cushion tires) Class 5 - internal combustion counter-balanced trucks (pneumatic tired) Class 6 & 7 are for heavy duty outside applications

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is

Competing on differentiation

Competing on differentiation is

Concerned with uniqueness

Aisle Width & Type of Lift Truck

Counterbalanced truck 12' AISLE Reach Truck 9' AISLE Drexel SwingMast 4 1/2' AISLE

Cushion Tire Truck

Cushion tires are made of smooth solid rubber and are fitted around a metal band. Cushion tires are best for smooth surface applications. primarily indoors or on loading docks. They also help with handling in smaller spaces, as they facilitate a smaller turning radius.

Straddle trucks

straddles instead of balances the weight, 8 to 10 feet aisle req.

Reach Truck advantages and disadvantages

Disadvantage: Poor visibility for high lift man-down trucks Advantage(s): Camera & display (expensive) Programmable height selector Cabin tilt

Basic Receiving Process (12 Steps)

Delivery appointment Verify ASN Dock assignment Safety check at dock Inspect seal and match # with ASN Inspect load-accept or refuse Unload unitized material Unload floor-loaded material Stage for count & final inspection Document and dispose of carrier damage Repalletize, label, ect. Put away into storage & cross-dock

The Six Key Warehouse Resources

Doors (enters and leaves the WH) Dock (loading dock space) Storage (any storage system) Personnel (people who make things move) Warehouse Management System (any process in a modern WH)

Order Picker Truck

Electric lift truck specifically designed for filling individual customer orders which require piece-part to case picking, rather than full pallets or unit loads.

Walkie Pallet Truck

Electric-powered lift truck operated by a person on foot also called Walkie, is defined as a walk-behind pallet truck with a mast for lifting pallets to heights.

Rider Pallet Truck

Electric-powered pallet jack in which an operator stands on an integrated platform while operating. They are designed to easily move products through a warehouse or distribution center.

Class 2 Trucks Types

Electric/Low Lift Pallet Truck Straddle Reach Double-Deep Reach Turret Order Picker Sideloader Hybrid

1 The person who introduced standardized interchangeable parts was

Eli Whitney

Lift Truck Design Issues

Ergonomics - interface of operator to machine Productivity - amount of goods moved or turned over in a given period of time Intelligent lift trucks - the direction the industry is moving in

Selective pallet racks

Every pallet faces the aisle-easily accessible Flexibility (multiple SKU's and load sizes Recommended for faster moving product Most common A tradeoff between storage density and handling cost

Theory of Constraints (E. Goldratt)

Every systems has a constraint that limits the system ability for throughput and ultimately money generation if we speak about a business.

Man-down Turret Truck

Expensive; Trucks are designed to provide maximum versatility in very narrow aisle (VNA) warehouses.

Key Warehouse Resource (KWR)

It is a component of a warehouse design or operation that is critical to the mission of the warehouse, is not easily acquirable or modifiable and has a finite or limited capacity, at least in the short term.

Pitfalls of Receiving

Failure to note damage Confusion of cause of damage Need to document damage with camera Poor control of inbound damage In-transit theft need when carefully counting and verification In-transit theft when voids in unitized loads In-transit theft when determining the share of intense check for high-volume operations Collusion theft to dishonest driver and dishonest receiving employs Collusion theft when carefully inspect of vehicle after unloading Need to recycle pallets or other load unitizing devices Improper cross-docking Improper balancing of work activities cause delays leading to long carrier waits, detention, demurrage, and stockout.

T/F An assembly chart shows an exploded view of the product, usually three-dimensional or isometric drawing

False

Which of the following is not one of the 10 strategic OM decisions listed in the text?

Finance/accounting

False

Gravity flow racks are very low cost and have the advantages of labor efficiency and ease of product access.

Challenges of Warehousing

Growing number of SKUs Increased customer service requirements Demands to reduce inventory Greater efficiency and space utilization Increased product customization Increased use of efficient equipment options Greater use of technology Role of partnerships and virtual integration of inventories Enhanced measurements and operational accountability Increased emphasis on globalization

Truck Classifications

Height tend to be either low (4 - 6") or high (up to 40") Mechanical Power assistance

Man-up Turret Truck

High Costs; Optimist stacking and order picking efficiency in very narrow aisles (VNA) and high racking.

WIP warehouses

Hold partially completed assemblies and products at various points along an assembly or production line

Reach Truck for Narrow Aisles

Ideal for quickly placing or retrieving pallets from racks. Typically stays in the aisle, while another, more suitable machine moves pallets between the dock and the buffer area in front of the aisle.

Rider stacker

Ideal for stacking and retrieving goods at various heights, Rider stacker transports goods over short and longer travel distance and maneuvers in racking and shelving in tight spaces, ensuring low ownership costs.

True

In today's business environment, cycle time reduction programs generally mean that smaller orders are delivered to warehouse customers more frequently and require more accurate picking.

Electric Pallet Truck/Low Lift Pallet Truck

Inexpensive solution for high intensity loading dock operations. Can maneuver well within trailer but cannot stack pallets.

Which of the internal operations strategies involves low cost reductions and low local responsiveness?

International strategy

In which stage of the product life cycle should product strategy focus on process modifications as the product is being fine-tuned for the market?

Introduction

Push-Back Racks

Is a pallet storage method that allows pallets to be stored from 2 to 6 deep on either side of an aisle, giving you higher storage density than other forms of racking.

Gravity Flow Racks

Is a storage system that relies on gravity flow to load, organize, and retrieve stored cartons or pallets within a warehouse. Maximizing space and efficiency, gravity flow racks will save your business money, improve your productivity, and increase safety for your employees.

Block Stacking

Is the cheapest pallet storage option May still require an investment in packaging (thicker cardboard, pallet corners, etc.) WMS Upgrades (calculating stackability, managing the new layout & addresses, minimizing honeycombing, managing weight limits, tracking expiration dates, etc.)

Possible Variations in the Process

Isolate from salable goods, select in the WMS Ship every carton with visible damage back to supplier Salvage and repair goods Destroy goods beyond repair Immediate and detailed checking Saleable condition vs. reconditioning needed

Wooden pallet

It is the workhorse of the industry Inexpensive (from $20 & up) Readily available from many sources for overnight delivery Can order or build you own for specific load sizes Do not have to order in large quantities to make it economical Stackable Special treatment for export may be required

False

Item batching reduces complication in assembling orders by selecting more than one order on a single pass through the stock.

Lift Truck Design Considerations for Loading/Unloading

Lift trucks with biggest, widest tired possible to reduce floor damage Lowered height for lift truck masts (Less than 83") for clear low trailer heights Specify side-shift attachment to move cargo away from trailer wall to allow for more precise stacking

Lift trucks Primary Functions:

Loading and unloading trailers at shipping and receiving docks Transporting materials to storage locations Placing materials on racks and retrieving them Picking and redistributing products to final point of use

Cross-docking

Loads are scheduled for delivery into the warehouse from vendors, inbound materials are sorted immediately into their outbound orders, outbound orders are transported immediately to their outbound dock, receiving staging or inspection is not required, product storage is not required

Long-term Contract

Long-term contract is a contract to perform work for another over an extended period of time.

Plastic pallet

Lower weight Good load-bearing capacity Typically lower height Durable Stacks very compactly Easily customizable when ordered Eliminates loose nails and splinter in the WH Cleanable Expensive (100+) Even though cheap export pallets exist

False

Major disadvantages of using bin shelving for small products are item security and the relatively high system maintenance costs.

Hand Trucks

Manually operated equipment generally used to move small items short distances.

At which stage of the product life cycle is product strategy likely to focus on improved cost control?

Maturity

The Plight of a Warehouse Manager

More: Smaller transactions to execute Items to handle and store Product and service customization to provide Value-added services to perform Returns to process International orders to receive and ship Less: Time to process and order Margin for error Young, skilled, English-speaking personnel WMS capacity

Which of the international operations strategies uses the existing domestic model globally?

Multidomestic strategy

Block stacking factors

Multiple pallets per SKU Inventory turns in large increments (multiple pallets) LIFO discipline Relatively low ceilings (most products will not be stacked higher than 15-20 ft; the rest of the building height is not utilized)

Outsource

Obtain from an outside or foreign supplier, especially in place of an internal source.

True

One of the major benefits of the issue pack optimization strategy of order picking is the elimination of item counting.

True

One problem of zone picking is the lack of equal ability of various workers. A possible solution is the swarm intelligence strategy.

Swing-mast Counterbalance Truck

Operated to use on unimproved natural pallets and disturbed pallets designed to be used primarily outdoors.

Pallet Stacker Truck

Operator would typically sit or stand while driving like a counterbalanced, each or straddle lift truck.

True

Order picking is generally the most costly activity in a warehouse.

True

Pallet as you pick, pick and then pallet, and no need for palleting are the three major strategies of case picking.

Drive-In Racks

Pallets are placed so they can slide backwards on a rail, thus storing them more deeply and creating more space in the warehouse. Drive-In Racking involves the forklift entering the racking from one side to load or retrieve the pallets which are stored more deeply.

Class 3 Trucks

Pedestrian ("Walkies" - walk next to the machine while it is moving) Electric motors Electronically or manually controlled Powered vertical and horizontal movement

Lines per order distribution

Percentage of orders in the warehouse that are for 1 to ? line items

Common Classification

Private Public Contract

Private Warehouse

Private warehouse is a warehouse which is privately owned by wholesalers, distributors or manufacturers. Large retail and online marketplaces also have their own privately-owned warehouses.

______ is used to rank a company's products to determine which products represent the best use of the firm's resources, or, perhaps, to determine which products are to be eliminated

Product-by-value analysis

Public Warehouse

Public warehouse is a business that provides short or long-term storage to companies on a month-to-month basis. The public warehouse is not only a facility where a company can store their products, but the public warehouse offers inventory management, physical inventory counts and shipping functionality.

Types of Warehouses (WH)

Raw material and component warehouses Work-in-process WH Finished goods WH Distribution WH/centers Fulfillment WH/centers Local WH Value-added service WH Commodity WH Bulk storage WH Temperature-controlled WH Household goods WH General merchandise WH Mini WH

Product flow in Warehouse System

Receiving Putaway Storage Order Picking Shipping

Traditional Warehouse Functions

Receiving the goods from a source Storing the goods temporarily Picking (selecting) the goods when required Shipping/releasing the goods to the appropriate user

Very Narrow Aisle Counterbalance Truck advantages

Reduces rack, product, and truck damage in high vertical storage Wire Guidance (Wire in the WH floor) Rail Guidance (Small lateral guide rollers on the truck run on WH floor mounted angle iron) Vision Guidance (Safety issues usually make it inappropriate for modern WH very narrow aisles.

Class 2 Lift Trucks

Rider operated Electric motors Load carried over wheels (not counterbalanced)

Class 4 Trucks

Rider operated Internal Combustion engine (ICE) Counterbalanced Cushion tires

Class 5 Trucks

Rider operated Internal combustion Counterbalanced Pneumatic tires

Class 1 Lift Trucks

Rider-operated Counterbalanced Electric motors Batteries

Value of Warehousing

Right product in the right place at the right time n the right condition in the right quantity at the right price.

Types of Racks

Selective pallet rack (single-deep) Double-deep rack Deep pallet lane racks Drive-in racks Drive-through racks Push-back racks Pallet flow racks Shuttle racks Mobile pallet racks Cantilever racks

Value Added Service Warehouses

Serve as the facility where key product customization activities are executed, including packaging, labeling, marking, pricing, and returns processing

Walkie Stackers

Short distances, operator steers from a walking position behind the vehicle perfect for low throughput max-3 loads high putaway and unload/load

Short-term Contract

Short-term contract is meant to provide temporary cover for the absence of a staff member for a minimum of 3 months and maximum of 12 months.

An assembly drawing

Shows an exploded view of the product

False

Small item storage systems such as vertical carousel systems have a great deal of product flexibility.

Cross-docking

Sort inbound load(s) into multiple outbound loads. Mix existing warehouse inventory with inbound load(s) into multiple outbound loads.

Metal pallet (Aluminum, Galvanized Steel)

Special applications Durable Expensive ($300+)

Warehouse Functions

Storage and flow (Measured by capacity & throughput)

Cantilever Rack

Storage system designed to store long, awkward, or bulky materials of virtually any length. Also used in the storage of odd sized and/or awkward loads such as furniture. Good for long products. Sideloader helpful for narrow aisle width, forks wide apart for load stability, and base to rest the load on for stability while in movement Can be with shelving/decking

Recyclable pallets (Environmentally friendly)

Typically pressed wood or paper Cheap but may have a lesser load capacity Typically within the firm's own supply chain Mostly for shipper rather than storage, and often one-way Has future potential as acceptance and technology improves

General Storage Truck Requirements

Unload Trailers Ramp issues for lift trucks Move pallets between different areas in the WH Ambient temperature storage Bulk storage Storage racking system Order picking

Very Narrow Aisle Counterbalance Truck

Very-narrow aisle truck (VNA) pallet carrying counterbalanced for truck with an articulating carriage allowing the forks to rotate 180 degrees within the storage aisle.

False

Warehouses often mix their broken and full-case storage areas to increase picking productivity.

F) All of the above should be considered when choosing a material handling system.

When choosing a material handling system, which of the following factors do not play a role? A) The material handling systems of vendors. B) The physical characteristics of the products being handled. C) The design of the warehouse. D) The throughput of the warehouse. E) The seasonal or cyclical demand patterns. F) All of the above should be considered when choosing a material handling system.

B) The desire to use a LIFO inventory policy.

Which of the following has no impact on a warehouse's ability to use block stacking? A) Crushability of the loads. B) The desire to use a LIFO inventory policy. C) Vehicle lift height capacity. D) Load stackability. E) Pallet conditions. F) Weather conditions.

D) Potential storage density.

Which of the following is a major problem with using a single-deep pallet storage system? A) Load access. B) Inventory and location control. C) FIFO maintenance. D) Potential storage density. E) Throughput capacity.

E) All are popular types of pallet retrieval systems.

Which of the following is not a popular type of pallet retrieval system? A) Counterbalance lift truck. B) Straddle reach truck. C) Walkie stackers. D) Sideloader trucks. E) All are popular types of pallet retrieval systems.

C) Counter-balance Truck

Which of the following pallet handling systems has the lowest unit cost? A) Turret Truck B) Straddle Reach Truck C) Counter-balance Truck D) Sideloader Truck E) Straddle Truck

Pallet flow rack

Which of the following pallet storage systems does not encourage the use of LIFO inventory management? A) Pallet Flow Rack B) Push-Back Rack C) Double-Deep Pallet Rack D) Drive-In Rack E) Block Stacking

Floor storage

Which of the following pallet storage systems has the ability to house the most variety of load sizes? A) Floor storage. B) Drive-in rack. C) Single-deep rack. D) Double-deep rack. E) Stacking frames.

A) Floor storage.

Which of the following pallet storage systems has the most potential storage density? A) Floor storage. B) Drive-in rack. C) Single-deep rack. D) Double-deep rack. E) Stacking frames.

C) Single-deep rack.

Which of the following pallet storage systems is best for a FIFO product? A) Floor storage. B) Drive-in rack. C) Single-deep rack. D) Double-deep rack. E) Stacking frames.

E) Block Stacking

Which of the following pallet storage systems is the least expensive on a per storage position basis? A) Pallet Flow Rack B) Push-Back Rack C) Double-Deep Pallet Rack D) Drive-In Rack E) Block Stacking

False

With today's technologies, warehouse slotting has become accurate and rather stable. Thus slotting changes are minimized in most cases.

Which of the following typically shows the hierarchy of components, their description, and the quality of each required to make one unit of a product?

a bill of material

4 A forecast that projects a company's sales is

a demand forecast

4 The following table gives the number of pints of type A blood used at Damascus Hospital in the past 6 weeks: Week 1: 345 Week 2: 389 Week 3: 412 Week 4: 381 Week 5: 368 Week 6: 371 Week 7: ? a) The forecasted demand for Week 7 using a 3-week moving average=____ pints b) Using a 3-week moving average, with weights of .15, .35, and .5 for the most recent week, the forecasted demand for Week 7=____ pints c) If the forecasted demand for Week 1 is 345 and alpha=.25, using exponential smoothing, develop the forecast for each of the weeks with the known demand and the forecast for Week 7. Week 1: Actual = 345, Forecast = 345 Week 2: Actual = 389, Forecast = 345 Week 3: Actual = 412, Forecast = 356 Week 4: Actual = 381, Forecast =____ Week 5: Actual = 368, Forecast = ____ Week 6: Actual = 371, Forecast = ____ Week 7: Actual = ?, Forecast = ____

a) 373.33 b) 371.45 c) Week 4 Forecast: 370 Week 5 Forecast: 372.75 Week 6 Forecast: 371.56 Week 7 Forecast: 371.42

Drive-thru rack

accessible from both sides of the rack

Distribution Centers

accumulate and consolidate products from various points of manufacture within a single firm or from several firms for combined shipment to common customers

Putaway

act of placing merchandise in storage (includes material handling, location verification, and product placement

Purchase Order Profiling

activity is inbound instead of outbound used to make same batching and processing strategy decisions as the cutomer order profile except receiving and putaway

Which of the following is an example of an external product development strategy?

alliances

1 Which of the following activities at a commercial bank is NOT an operations activity

auditing

Name 5 Parameters in warehouse activity profiling

average skus, total lines, lines per order, cube per order, flow per item, lines per item, cube movement, demand correlation, avg rate of introduction of the new skus

Unitizing (and shipping)

checking orders for completeness, packaging in appropriate shipping containers, preparing shipping documents (packing lists, address labels, bills of lading), weighing shipments, accumulation orders by outbound carrier, loading trucks

Item popularity

close to the door, close to the floor, assigne the most popular items to the most accessible warehouse locations

Receiving

collection of activities involved in the orderly receipt of all materials coming in, providing the assurance that the quantity and quality of such materials are as ordered and disbursing materials to storage or to other organizational functions requiring them

Interleaving and continuous moves

combine putaways and retrievals when possible (combine to reduce empty travel by lift trucks)

Benchmark

compare against world-class standards to determine performance practice, and infrastructure gaps, to quantify investment in new material and information handling systems

Automate

computerize and to mechanize, (incrementally justify tools to improve computer systems storage systems material handling systems)

Single-deep selective pallet rack

construction of metal uprights and cross-members providing immediate access to each load stored, no honeycombing advantage-full accessibility to all unit loads disadvantage- amount of space devoted to aisle FIFO

Profie

create and maintain profiles to identify root causes of process impediments and breakthrough opportunities for improvement

4 As compared to long-range forecasts, short-range forecasts:

deal with less comprehensive issues supporting management decisions

Order increment distributions

determine the portion of a unit load requested on a customer order

An engineering drawing shows the

dimensions, tolerances, materials, and finishes of a component

Local warehouses

distributed in the field in order to shorten transportation distances to permit rapid response to customer demand

Dock to stock time

elapsed time from when a receipt arrives on the warehouse premises until it is ready for picking or shipping

Warehouse Order Cycle Time

elapsed time from when an order is released to the warehouse floor until it is picked, packed, and ready for shipping

Which of the following represents a reason for globalizing operations?

expand a product's life cycle, improve supply chain, improve operations, attract and retain global talent

Double-deep rack

fewer aisle space needed due to two deep rack facings honeycombing present

Automated storage and retrieval (ASR) machines

fixed path sorage and retrieval machines running on one or more rails between fixed arrays of storage racks

Pallet Stacking Frames

frames attached to standard wooden pallets or self-contained steel units made up of decks and posts, frames can be disassembled and stored in min. space popular when there is a short term spike in inventory

Order mix Distributions

helpful for plotting warehouse operating strategy ( family, handling unit, and order increment)

Finished Goods Warehouses

hold inventory used to balance and buffer the variation between production schedules and demand

Raw Material and component warehouses

hold raw materials at or near the point of induction into a manufacturing or assembly process

Item-order completion distribution

identifies groups of items that can fill large groups of orders

Calendar-clock profile

includes a seasonality distribution and a daily activity distribution, which are designed to reveal peaks and valleys in warehouse activity so that material handling systems can be properaly sized so that proper staff scheduling programs can be designed

Demand correlation distribution

indicated the affinity of demand between individual items and between families of items (ex. Each style by size)

Demand variability distribution

indicated the standard deviation of daily demand for each items ( made sure there was no need to restock during a picking shift.

Daily Activity Distribution

indicates hourly peaks and valleys in receiving storage picking and shipping activity

Item family inventory Distribution

indicates the amount of inventory on-hand by item popularity family

Seasonality distribution

indicates the peaks and valleys in inventory levels as well as receiving shipping and returns activity

Cube-movement distribution

indicates the portion of items that fall into prespecified cube-movement ranges assign items to storage modes based on their cube-movement

Prereceiving

information captured ahead of time by having info communicated by the vendor at the time of shipment via the internet, edi link, or via fax notification (ex. Smart card enabling immediate input of the info at the receiving dock)

A products life cycle is divided into four stages, which are

introduction, growth, maturity, and decline

Humanize

involve warehouse operators in redesigning warehouse processes, by developing team and individual performance goals, and by implementing ergonomic improvements in every manual activity in the warehouse

4 The forecasting technique that pools the opinions of a group of experts or managers is known as:

jury of executive opinion

Drive-in rack

lift truck can drive into the rack several pallet positions and store or retrieve a pallet

Sideloader trucks

loads and unload from one side aisle 6 ½ feet 40ft reach disadvantage have to enter correct side of aisle to get product

Pallet flow rack

loads are conveyed FIFO on skate wheel conveyor, roller conveyor or rails from one end of a storage lane to the other good for items with high pallet inventory turnover FIFO

1 Which appears to provide the best opportunity for increases in productivity?

management

1 Which of the following is NOT one of the factors that fosters specialization and worldwide supply chains?

marketing

Packaging (and or pricing)

may be done as optional after picking

Which of the following product development strategies has the highest product development risk?

new internally developed products

Handling Unit Inventory Distribution

on hand inventory in terms of pallets of merchandise on-hand

Putaway

order picking in reverse

Family Mix

orders require items from multiple families of items

Warehouse performance gap analysis

our benchmarking methodology for assessing the utilization of warehouse infrastructure in meeting the mission of the warehouse

Prepackaging

performed in a warehouse when products are received in bulk from a supplier and subsequently packaged singly, in merchandisable quantities, or in combinations with other parts to form kits or assessments

Receiving scheduling

premeditated cross-docking requires the ability to schedule inbound loads to match outbound requirements on a daily or even hourly basis

Receipt Preparation

prepackaging in issue increments, applying necessary labels and tags, cubing and weighing for storage and transport planning

Order picking

process of removing items from storage to meet a specific demand ( basic service a warehouse provides for customers)

Push-back rack

provides LIFO deep lane storage using a rail guided carrier for each pallet load every sku has a load that is accessible

Direct Putaway

putaway directly to primary or reserve locations (staging and inspection eliminated)

4 The two general approaches to forecasting are

qualitative and quantitative

Storage density

ratio of the amount of inventory storage capacity to the square footage in the warehouse

Labor productivity

ratio of units orders lines or weight shipped out of the warehouse to the number of hours spent in operating supervising and managing the warehouse

Warehouse Productivity Performance

ration of the output of a resource to the inputs required to achieve that output

Fulfillment Centers

receive, pick, and ship small orders for individual customers

Innovate

reconfigure warehouse processes by eliminating and streamlining as much work content as possible

Block stacking

refers to unit loads stacked on top of each other and stored on the lforr in storage lanes, two to ten loads deep, retrieved under LIFO

The three major elements of the product decision are

selection, definition, and design

4 Forecasts are usually classified by time horizon into which three categories

short, medium, and long-range

Mobile pallet Rack

single deep pallet racks on wheels or tracks permitting an entire row of racks to move away from adjacent rack rows.

Turret trucks

singmast do not require turns swing from side to side to pick load up 5 to 6 ft. aisles increase storage density

Batched and sequenced putaway

sort inbound materials for efficient putaway

Sortation

sorting of batch picks into individual orders and accumulation of distributed picks into orders (must be done when order has more than one item and accumulation is not done as the picks are made)

Directed Putaway

system direct the putaway operators to place each pallet or case in the location that maximizes location and cube utilization, insures good product rotation, and maximizes retrieval productivity

Popularity-cube movement distribution

takes into account both popularity and cube movement

Handling unit

the full/partial pallet (pallet vs. case picking areas) mix distribution and the full/broken case (full and broken case picking areas) mix distribution (decide if these areas are necessary)

A graphic technique for defining the relationship between customer desires and product (or service) is

the house of quality

Putaway accuracy

the percent of items putaway correctly

Picking accuracy

the percent of order lines picked without errors

Shipping accuracy

the percent of order lines shipped without errors

Inventory accuracy

the percent of warehouse location without inventory discrepancies

Storage

the physical containment of merchandise while awaiting a demand

1 In general, the supply chain starts with

the provider of basic raw materials

Why are SKU's assigned to slots in empty lanes

to minimize the total cost of material flow

What is Quality function deployment (QFD)?

used to determine where to deploy efforts, translates customer desires into the target design, determines what will satisfy the customer, used early in the design process

Direct shipping

vendors bypass our warehouse completely and ship directly to the customer

Lines and Cube per Order Distribution

which items occupy what cubic foot of space

A document for production the gives the instruction to make a given quantity of a particular item, usually to a given schedule, is a

work order