SA

Describe the "Item Procurement Importance Matrix." Provide an example of a product in each category.

Compares risk to the value or profit potential of an item Distinctives • Typically engineered items Generics • Office supplies or MRO items Criticals • Unique items that are critical to final product Commodities • Logistics services

Direct Distribution:

Provides point-to-point service Advantages: Eliminate need for intermediate facilities Reduces delivery delays Cuts product loss Disadvantages: Higher LTL transport cost Minimal inventory on-hand Ideal use: high volume goods, time sensitive products, and retail supply chains

Procurement:

Refers to the process of managing a broad range of processes that are associated with a company's need to procure goods and services that are required to manufacture a product (direct) or to operate the organization (indirect).

Cross-Docks

Speeds product flow, goods are pre-distributed Advantages: Boosts productivity, limited product handling Increases inventory turnover, no interim storage Disadvantages: • Only moderate inventory on-hand • Safety stock is held at store

Distribution Centers:

Support quick replenishment Advantages: Improves inventory availability, safety stock on-hand Provides product variability, hold/ship vast assortment Promotes efficient sourcing, discounts Ideal use: stable demand products, seasonal goods inventory build-up Disadvantages: • High handling costs • Very high facility investment costs

Describe how the "Pick-Store Dominance Matrix" is used to determine warehouse design choices.

The matrix tells you which Storage and Picking combination to use depending on the requirements. o High Picking/High Storage: high density storage, automated handling, large o High Picking/Low Storage: dedicated location, low-density storage, automated handling. Picking dominates - focus on sortation o Low Picking/High Storage: random location, high density storage, manual handling, multi levels, storage dominates o Low Picking/Low Storage: dedicated pick location, dual storage, low density storage, manual handling

Purchasing:

The transactional function of buying products and services.

Strategic sourcing:

broader and more comprehensive than the procurement process • focusing more on supply chain impacts of procurement and purchasing decisions, • and works cross-functionally within the business firm to help achieve the organization's overall business goals

Describe how the "Volume-Variety Storage System Guide" is used to determine material handling choices

pallets/SKU drive the tradeoff between storage systems that work efficiently and those that don't

Describe different ways a warehouse/distribution center can add value in the supply chain aside from the time and place utility role.

• Assembly Service → handle light assembly of products such as building and filling in-store displays • Product Postponement → conduct specific activities that have been postponed until customer order (assembly, sizing, packaging, labeling) • Inventory management and visibility → Provide consignment and vendor-managed inventory programs

purchasing, procurement, and strategic sourcing. How have these concepts evolved?

• Purchasing, procurement, and strategic sourcing are receiving considerable attention as organizations try to improve the overall efficiency and effectiveness of their supply chains.

Describe how "Load-Distance Analysis" is used to determine warehouse layout/space allocation choices.

•Assumes a "cost" for moving/handling product across the facility •Assumes flow relationships between products •Proximity of storage location for an individual department to the loading dock should be based on how many trips per transaction are required for each individual product. o Departments requiring more trips should be located closer to the loading dock