Logistics Chapter 10
Occupation Safety and Health Administration (OSHA)
A U.S. Federal agency that regulates work spaces to ensure the safety of workers
Contract (third-party) 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 the client share the risks associated with the operation -both vendor and client share the risks associated with the warehousing -Less costly than private warehousing and more costly than public warehousing -Allows ca company to focus on its core competencies (what it does best) - Offers the same degree of control as private warehousing because key specifications.
Hazardous Materials
Any item or agent (biological, chemical, physical) that has the potential to cause harm to humans, animals, or the environment, either by itself or through interaction with other factors
Private warehousing Drawbacks
- high fixed costs of private storage -necessity of having high and steady demand volumes -less attractive when interest rates are high -may reduce an organizations flexibility
Warehousing
"That part of the firm's logistics system that stores products (raw materials, part, good-in process, finished goods) at and between points of origins and point of consumption
Private Warehousing
- Owned by the firms storing goods in the facility -Generates high fixed costs - Should only be considered by companies dealing with large volumes of inventory - Largest uses of private warehousing are retail chain stores - Offers control to owners - Assumes both sufficient demand volume and stability so that warehouse remains full
Public Warehousing
- Serve all legitimate users - Require no capital investment on the users part - Allows users to rent space as needed - Can be rented on a month to month basis - Warehousing companies have responsibility fro personnel decisions and regulatory issues - offers more locational flexibility - May provide specialized services - Drawback: Lack of control by user
Assorting
Building up a variety of different products for resale to particular customers
Fixed Slot Location
Each product is assigned a specific location in a warehouse and is always stored there.
Distribution Center
Emphasize rapid movement of products through the facilities. Is a type of warehouse
Warehouse
Emphasize the storage of products. Primary purpose is to maximize the usage of available storage space.
Allocating (bulk breaking)
Involves breaking larger quantities into smaller quantities
Accumulating (bulk making)
Involves bringing together similar stocks from different sources
Dunnage
Material that is used to block and brace products inside carrier equipment to prevent the shipment from shifting transit and becoming damaged
Multi client Warehousing
Mixes attributes of contract and public warehousing. Services are purchased through contracts that cover at least one year. Smaller organizations who don't have have sufficient volumes to build their own storage facilities or use traditional one client contract warehousing services.
Regrouping Function
Rearranging the quantities and assortment of products as they move through the supply chain and can take four forms - accumulating, allocating, assorting, and sorting out.
Sorting out
Separating products into grades and qualities desired by different target markets
Warehouse Automation
The Utilization of mechanical or electronic devices to substitute for labor
Cross-docking
The process of receiving product and shipping out the same day or overnight without putting into storage
Variable Slot Location
empty storage slots being assigned to incoming products based on space availability. The shortest travel time to an entrance or exit point
Benefits to Cross-Docking
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
Throughput
the amount of product entering and leaving a facility in a given time period