Business Logistics Chapter 10+11 Exam
environmental protection
-disposable packaging is often viewed as wasteful -Plastic packaging in particular, has become a frequent target for environmental critics Packaging strategies include: -to reduce the amount of packing materials used -use environmentally friendly packaging materials -use reusable containers -retain or support services that collect used packaging and recycle it
Occupational Safety and Health Administration (OSHA)
A U.S. federal agency that regulates workplaces to ensure the safety of workers
slip sheet
A flat sheet of either fiberboard material or plastic that is placed under the unit load
Closed Loop System
A system that uses feedback from the output to control the input.
Private warehousing
A warehousing facility that is owned by the firm using it
Picker-to-part system
An order picker goes to where the product is located (e.g., a forklift).
hazardous materials
Any substances that are toxic, poisonous, radioactive, flammable, or explosive and cause injury or death with exposure.
Allocating (bulk breaking)
Breaking larger quantities into smaller quantities
Accumulating (bulk making)
Bringing together inventory from different sources
the impact of packaging on transportation
Carriers' tariffs and classifications influence the type of packaging and packing methods that must be used. Carrier specifications for protective packaging reduce the likelihood of damage to products while they are being carried: this in turn reduces the amount of loss and damage claims placed against the carrier
Unit load (unitization)
Consolidation of several units (cartons or cases) into larger units to improve efficiency in handling and to reduce shipping costs
Private warehousing evaluations
Cost: Private warehousing generates high fixed costs and thus should only be considered by companies dealing with large volumes of inventory Locational flexibility: not as flexible as public Contract terms: Control: Private warehousing offers potential users a great deal of control over their storage needs Worker training/safety: same
contract warehousing evaluations
Cost: less costly than private warehousing but more costly than public warehousing Locational flexibility: more flexible than private warehousing but less so than public warehousing Contract terms: 3-5 year contracts, as the length increases the flexibility to respond to change decreases Control: potentially offers the same degree of control as private warehousing because key specifications can be included in the contract Worker training/safety: same
Public warehousing evaluations
Cost: requires no capital investment, the user rents the space as needed Locational flexibility: Offer more locational flexibility than company-owned facilities Contract terms: Control: Lack of control by user Worker training/safety: regulatory issues are the responsibility of the warehousing provider and not the warehousing customer
multiclient warehousing evaluations
Cost: services in a multiclient facility are more differentiated than those in a public facility but less customized than would be found in contract warehousing Locational flexibility: similar to contract warehousing Contract terms: purchased through contracts that cover at least one year Control: Worker training/safety: same
regrouping function
Involves rearranging the quantities and assortment of products as they move through the supply chain
safety considerations
OSHA
cubes out
Occurs when a cargo takes up a vehicle's or a container's cubic capacity before reaching its weight capacity
Packaging inefficiencies
Packaging inefficiency can have a number of undesirable logistics consequences, including increased loss, increased damage, slower material handling, higher storage costs, and higher transportation costs
Dunnage
Protective packaging materials placed around cargo to prevent shifting or damage while in transit.
metric system
The US, Liberia, and Myanmar are the only three countries in the world that do not currently use the metric system of measurement - one US industry that has prominently embraced the metric system is the liquor- producing industry - the conversion began in 1970s illustrates several of the potential challenges that might stand in the way of the United States formally adopting the metric system. - liquor is heavily regulated and taxed - these taxes became an issue in converting to the metric system because they were drawn up to be applicable to half pints, pints, quarts, and other English units of measure as opposed to half liters and liters - cartons used for transporting liquor were too small to hold one litter bottles
Part-to-picker system
The pick location is brought to the picker (e.g., carousels).
distribution center
a large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible
velocity slotting
a slotting strategy that places the most frequently picked items in the most accessible locations
variable slot location
a system in which products are stored wherever there is empty space available in a warehouse
Globally Harmonized System of Classification and Labeling of Chemicals (GHS)
an effort by the United Nations to classify and label hazardous materials that provides three key pieces of information 1) a symbol 2) a signal word 3) a hazard statement
Unit Load Platforms
an important issue with respect to unit loading concerns the platform (basic unit) on which to place the unit load. Although pallets are a popular unit load platform, one disadvantage is their height, and when goods are loaded aboard pallets into railcars, trailers, or containers, the space occupied by the pallet is unproductive.
Cross-docking
avoiding the placement of materials or supplies in storage by processing them as they are received for shipment
building out vs building up
building out: requires more land which can be quite expensive, particularly in certain geographic areas building up: although building costs decline on a cubic-foot basis as one builds higher, warehousing equipment costs tend to increase
handling of bulk materials
bulk cargoes have various handling characteristics, one of which is density. consider three different bulk materials namely iron ore, coal, and grain, each of which is characterized by a different density. cube out .
building blocks concept
combining smaller packages into larger units that can be more efficiently handled at one time
dimensional weight
considers a shipment's density to determine a shipment's billable weight
two dock vs single dock
double dock: generally has receiving docks on one side of a facility and shipping docks on the other side, with goods moving between them single dock: each and every dock can be used for both shipping and receiving, typically receiving product at one time of day and shipping it at another time reduces the space needed for storage docks, but requires items to be delivered at a certain time and may also result in an occasional mix-up in that received products sometimes gets reloaded into the vehicle that delivered it
Fixed slot location
each SKU has one or more permanent slots assigned to it
packaging issues
environmental protections, metric system, packaging inefficiencies
fixed vs variable slot
fixed: each SKU has one or more permanent slots assigned to it variable: involves empty storage slots being assigned to incoming products based on space availability
Basics of packaging
functional tradeoffs packaging testing and monitoring labeling
multiclient warehousing
mixes attributes of public and contract warehousing; services are more differentiated than a public facility but less customized than in a contract facility
narrow aisle vs wide aisle
narrow aisle: require specialized storage and handling equipment, such as narrow aisle lift trucks, this specialized equipment is noticeably more expensive than traditional lift trucks, however, specialized lift trucks can be twice as productive as traditional lift trucks wide aisle: as aisle space increases, the storage capacity of a facility decreases, it is easier to operate machinery in wider aisles and wider aisles reduce the chances of accidents and product damage
Labeling
near the point where product packaging occurs, it is necessary to maintain a complete inventory of all the packages, packaging materials, and labels that will be used. Once the material being packaged is placed into the box and covered, the contents are hidden. Whether words, pictures, or code numbers are used depends on the nature of the product and its vulnerability to pilferage
Functional Tradeoffs
packaging serves three general functions, namely, to promote, to protect, and to identify the relevant product. upstream and downstream supply chain members can also be involved in packaging design decisions
types of material handling equipment
pallet, skid,
Warehouse operations include
productivity improvements, safety considerations (e.g. forklift training), security and cleanliness issues
Assorting
putting together a variety of products to give a target market what it wants
Fulfillment center
refers to a special type of distribution center that focuses on e-commerce orders
Sorting out
separating products into grades and qualities desired by different target markets
Public warehousing
serves all legitimate users and has certain responsibilities to those users
packaging
the activities of designing and producing the container or wrapper for a product
throughput
the amount of work performed by a system during a given period of time
Materials handling
the physical handling and movement of products in warehousing and transportation
Ergonomics
the study of people's efficiency in their working environment.
warehouse automation
the utilization of mechanical or electronic devices to substitute for labor
Contract Warehousing
third party-managed facilities that involve longer term contracts, higher levels of customization and tailored solutions, and typically one client per facility
Packaging Testing and Monitoring
to properly design a protective packaging system requires three important kinds of information: the severity of the distribution environment, the fragility of the product to be protected, and the performance characteristics of various cushion materials - the packages are subject to tests that attempt to duplicate all the expected various shipping hazards: vibrations, dropping, horizontal impacts, compression, overexposure to extreme temperatures or moisture, and rough handling -monitoring is done by enclosing recording devices with cartons of the product that are shipped. (ex: thermometers)
degree of automation
utilizing mechanical or electronic devices to substitute for human labor. examples include: narrow aisle forklifts, automated guided vehicles, automated storage and retrieval systems, radio frequency identification, and robotic picking among others - although warehouse automation offers the potential to reduce labor costs and to improve warehouse productivity, it is important for managers to ensure that the automation results in noticeable improvement in warehousing effectiveness and efficiency. An organization should first assess whether it is ready for automation, because it can be complex, expensive, and disruptive to day-to-day operations
What is the difference between traditional warehouses, distribution centers, and order fulfillment?
warehouses: emphasize the storage of products, and their primary purpose is to maximize the usage of available storage space distribution centers: emphasize the rapid movement of products through a facility order fulfillment: represent a special type of distribution center that is focused on e-commerce orders