Logistics Test 2 Chapter 10

Contract Warehousing

A long term, mutually beneficial arrangement which provides unique and specially tailored warehousing and logistics services exclusively to one client where the vendor and client share the risks associated with the operation. Also referred to as third party warehousing or dedicated warehousing. It is less costly than private warehousing and more costly than public warehousing.

Hazardous Material

Any item or agent which has the potential to cause harm to humans, animals, or the environment, either by itself or through interaction with other factors.

Fixed slot location

Each SKU has one or more permanent slots assigned to it.

Warehouses

Emphasize the storage of products and their primary purpose is to maximize usage of available storage space

Two-dock verses single-dock layout

Generally has receiving docks on one side of a facility and shipping docks on the other side, with goods moving between them. In single dock each and every dock can be used for both shipping and receiving.

Safety Data Sheets

Government regulations require the use of these.

Allocating

Involves breaking larger quantities into smaller quantities.

Accumulating

Involves bringing together similar stocks from different sources, as might be done by a department store that buys large quantities of men's suits from several different producers.

Variable Slot location

Involves empty slots being assigned to incoming products based on space availability.

More crossdocking

Is differentiated from distribution center by the length of time a product is in a facility (24 hours or less). Design of the facility is an important consideration to facilitate quick movement of the products. Some designs include H I T U and E configurations.

Private Warehousing

Is owned by the firm storing goods in the facility; it generates high fixed costs and thus should only be considered by companies dealing with large volumes of inventory. Largest uses of this are retail chain stores. It offers control to the owner. It assumes both sufficient demand volume and stability so that warehouse remains full.

Dunnage

Material that is used to block and brace products inside carrier equipment to prevent the shipment from shifting in transit and becoming damaged.

Mulitclient Warehousing

Mixes attributes of contract and public warehousing. It has become popular in the first part of the twenty-first century. Services are more differentiated than those in a public facility. Services are less customized than those in a contract facility. Services are purchased through a minimum 1 year contracts. They are attractive to smaller organizations.

Trade offs

Must be made among space, labor, and mechanization with respect to warehouse design. Build out (horizontal) vs build up (vertical)

Order picking verses stock-replenshing functions

Organizations must decide whether workers who pick outgoing orders and those who are restocking storage facilities should work at the same time or in the same area

Assorting

Refers to building up a variety of different products for resale to particular customers.

Warehousing

Refers to that part of a firm's logistics system that stores products (raw materials, parts, goods-in-process, finished goods) at and between points of origin and point of consmption. This and MANAGEMENT are substitutes for each other, with this having been referred to as transportation at 0 MPH. It serves to match different rates or volumes of flow when patterns of production and consumption do not coincide.

Public Warehousing

Serves all legitimate users and has certain responsibilities to those users. Require no capital investment on the user's part. Allows users to rent space as needed. Can be rented on a month-to-month basis. Warehousing companies have responsibility for personnel decisions and regulatory issues. Offers more locational flexibility and may provide specialized services.

Throughput

The amount of products entering and leaving a facility in a given period of time.

Crossdocking

The process of receiving product and shipping it out the same day or overnight without putting it into storage. It has grown due to the increased emphasis on time reduction in supply chains. Key benefits include improved service by allowing products to reach their destinations more quickly as well as reduced inventory carrying costs from less stock because of faster product delivery.

Occupational Safety and Health Administration (OSHA)

Warehousing labor safety practices are monitored by this.

Distribution centers

emphasize rapid movement of products through the facility. They attempt to maximize throughput.

Regrouping Function

involves rearranging the quantities and assortment of products as they move through the supply chain and can take 4 forms: accumulating, allocating, assorting, and sorting out.

Sorting out

refers to separating products into grades and qualities desired by different target markets