SCM: ch.11: Distribution--Managing Fullfillment Ops

Distribution Facility Functions: Sortation

-assembles like products together for storage in DC or transfer to customers

Distribution Facility Functions: Assortment

-assembly of customer order for multiple SKU' held in distribution facility -provides product mixing capability Ex. grocery store

Contract Warehousing

-company lends complete operations of its warehousing functions to a third party that performs services on their behalf

Distribution Facility Functions: Allocation

-matches available inv to customer orders for a SKU

Distribution Facility Functions: Accumulation

-reciept of goods from variety of sources -collection point for product coming from multiple origins -allows org to consolidate orders

Distribution Facility Functions

1. Accumulation 2. Sortation 3. Allocation 4. Assortment

Role of Distribution Operations in SCM Factors

1. Balancing Supply and Demand 2. Protecting against uncertainty 3. Allowing quantity purchase discounts 4. Supporting production requirements 5. Promoting Trans economies

Primary Tradeoffs between distribution and other logistic activities

1. space vs equipment(more space means more equip) 2. Equip vs people(higher use of equip, lower labor requirements) 3. People vs Space(more workers, more space)