supply chain final

handling systems

1. mechanized- employ a wide range of handling equipment 2. semiautomated- supplemented by semiautomatic equipment 3. automated- automated high-rise storage and retrieval systems 4. information-directed- use mechanized handling controlled by information technology

schedules area delivery

A strategy of holding shipments to specific markets for delivery on selected days each week. The scheduled delivery plan is normally communicated to customers in a way that highlights the mutual benefits of consolidation

Be clear on FOB origin versus FOB destination

FOB origin- the simplest way to quote price, the seller indicates the price at point of origin and agrees to tender a shipment for transportation loading, but assumes no further responsibility. the buyer selects the mode of transportation, carrier, pay transpiration charges and takes risk in loss or damage FOB destination- product ownership title doesn't pass to the buyer until delivery is complete. The seller arranges transportation and charges are added to the invoice. The firm paying the freight bill doesn't necessarily assume responsibility for ownership of goods in transit, freight costs or filing freight claims.

Understand the controversy of using a base point pricing system/phantom freight

Imagine that you are shipping product to three different points at three different distances from the original shipping point. Let's charge them all the same freight. What happens is that the closest point pays too much, the central point pays the correct amount and the furthest point pays too little. It all averages out. The close point pays too much or "phantom" freight.

MC80

Motor Carrier Act of 1980- widespread desire for deregulation in trucking and railroads become official with passing MC80 ( and the staggers act) effort to stimulate competition and promote efficiency in trucking- this allowed firm to offer trucking services if they were judged to fit, willing and able. compared to the ICC, which retained the right to protect the public against discriminatory practices and pricing, individual carriers were given the right to price their own services this changed the industry from highly regulated to highly competitive.

tapering principle

The cost curve increases at a decreasing rate as a function of distance

pooled delivery

a freight forwarder, public warehouse or transportation company arranges consolidation for multiple shippers serving the same geographical market area.

break-bulk

a single large shipment that arranges for delivery to MULTIPLE destination. economy of scale is achieved by transporting the larger shipment from origin to destination break-bulk warehouse splits the larger shipment into individual orders

wave selection

aka batch selection a wave can be coordinated by an area of the warehouse wherein all quantities of all products required to complete all customer order are selected at one time. employees are usually assigned responsibility for a specific portion of the warehouse. can be planned around a specific shipment destination and/or carrier

AS/RS

automated storage and retrival system pg.261

lights out facilities

because humans are not an integral part of AS/RS these facilities are often reffered to as lights-out facilities .

Jones Act

because of the impact of globalization efforts were made to reframe the jones act The jones act mandates that only US- build ships operating under US flag and w a US crew can ship goods directly from a US port to another US port people argue that his unfairly limited global competition in US domestic shipping

cross docking

combination of inventory from multiple origins into a customized assortment to meet the needs of specific customers, used to replenish fast-moving store inventories. usually customers communicate exact volume requirements of each product, requested for each delivery destination literally loaded from the dock onto a truck specifically for that destination relies heavily on information technology because its so precise

Primary factors of transportation economics and pricing economy of density

combination of weight and volume higher density allows fixed transport cost to be spread across more weight...so higher density usually has lower transportation cost

contract warehouse

combines characteristics of private and public operations. one ISP may own and and operate facilities in multiple locations typically offer logistical services such as transportation management, inventory control, order processing, customer service and return merchandise processing.

in-storeage handling 2 types: transfer and selection

consists of inventory movements performed within the warehouse transfer- merchandise moved from receiving area to storage location using a lift truck. or the movement requires prior to order assembly selection- requires that materials,parts, and products be grouped to facilitate order assembly

warehousing has 4 economic benefits-

consolidation and break-bulk, sorting, seasonal storage and reverse logistics

consumer and industrial packaging

consumer focuses on primarily marketing while industrial focuses on logistics the primary concern for logistics operations is industrial packaging deign. individual products are typically grouped into cartons, bags, bins or barrels for damage protection and handling efficiency

master cartons

containers used to group individual products, when master cartons are gourd into larger units of handling, the combination is called containerization or unionization

cubes out/ weighs out

cube minimization is most important for lightweight products such as assembled load furniture that CUBES OUT a transport vehicle before wight limits are reached also, heavy products like steel ball bearings or liquid glass bottles typically weigh out transport vehicles before cube capacity is filled when a vehicle or container weighs out the firm ends up shipping empty cube space that can't be filled with product

Primary factors of transportation economics and pricing

distance, weight and density

extended storage

extended stoare is when inventory is held for a longer time than required for normal replenishment of customer stocks. using handling processes and technologies that focus on maximum space utilization with minimal need for access warehouses can be used product conditioning sometimes requires this

non-operating transportation intermediary

find economic justification by offering shippers over rates for movement between 2 locations than would be possible by direct shipment via common carrier- savings for shippers yay the primary intermediaries are freight forwarders, shipper associations and brokers

slotting a warehouse

in planning a warehouse layout it is important that products be assigned specific locations, called SLOTS, on the basis of individual characteristics. most important to consider: product velocity weight, and special storage requirements.

piggy-back

integrated rail and motor service that combines the flexibility of truck for short distances with the low lone-haul cost associated with rail for longer distances. becoming more popular because more efficient and effective

ISP

integrated service provider capable of performing the total logistics responsibility for an enterprise

ICC

interstate commerce commission- having broad regulatory power regarding transpiration, the federal and state government determined who could provide transportation services and the price they could charge for their services

JIT

just-in-time to reduce work in progress inventory

shipment manifest

lists individual stops when multiple shipments are placed on a single vehicle, each one requiring a bill lading. this lists the stop, bill of lading, weight and case out for each shipment so it provides a single document that defines the overall content of the load with out needing reviews of individual bills of lading.

Primary factors of transportation economics and pricing economy of distance

obi major influence on transportation cost bc contributes with labor, fuel and maintenance. ( tapering principle)

in-transit inventory

permit a shipment to be stopped at an intermediate point between initial origin and destination for unloading, storage and processing.

LTL/TL

products are assigned classifications based on the weight being shipped LTL- less-than-truckload will have higher ratings than TL- truckload shipments

Staggers Rail Act

provided railroad management with the freedom necessary to revitalize the industry. - increased pricing freedom( price flexibility) - management wa given liberalized authority to proceed with abandonment of unprofitable rail service - provided framework for liberalized attitude toward mergers - increased the ability of railroad to be in loved in motor carrier services.

public warehouse vs private warehouse

public warehouses are operated as an independent business offering a range of for-hire services like storage, handling and transportation. operators generally offer a menu of relatively standardized services to customers private warehouses is operated by the enterprise that owns the merchandise handled and store in the facility. pg. 235

diversion

shipper may desire to change routing, destionin or even the consignee afrer a shioment is in transit

bill of landing

the basic document utilized in purchasing transport services. it serves as a receipt and documents products and quantities shipped. in case of loss, damage or delay the bill of lading is the support for damage claims. the designated individual or buyer on a bill of lading is the only real recipient of goods in information contained on this determines all responsibilities related to timing and ownership

fore majeure

the bill of lading specifies term and conditions of carrier liability and documents responsibility for all possible causes of loss or damage except those defend as FORCE MAJEURE ( circumstances beyond anyones control such as a natural disaster)

land bridge

the concept that moves containers in a combination of sea and rail transport. this is commonly used for containers moving between Europe and Pscigic Rim, reducing time and expense based on the benefit of ocean and rail combinations that utilize a single tariff, which is lower than combined total cost of 2 separate rates

tariff

the price in dollars and cents per hundredweight to move specific product between 2 locations is called the RATE, and the rate is listed on pricing sheets or on computer files called TARIFFS

task interleaving

the process of assigning lift truck to continuous assignments. lift trucks are assigned independent of traditional work areas to specific jobs or work areas that need rescues such as receiving or shipping

detention

the term used by trucks to cover similar delays as demuurage. In the case of motor carriers, the permitted time is specidfied in the tariff and is normall imiited to a few hours

phantom freight

these occur when a buyer pays transpiration costs greater than those actually incurred to move the shipment

rigid contianers

these provide an enclosure within which master cartons or loose products are unitized. placing products inside a sealed container will both protect them and facilitate handling. used in air and water transport saves money from damages, insurance and loss pg.252-253

break bulk

trade where the cargoes are carried in a unitized form such as bagged, strapped, bundled and crated

Primary factors of transportation economics and pricing economy of weight

transport cost per unit of weight decreases as load size increases because of the fixed cost of pickup, delivery and administration all spread over incremental weight.

spot stocking inventory

typically used to support customer requirements. manufactures of highly seasonal products use spot-stocking. peak selling periods can be enhanced through temporary inventory positioning in strategic markets. select inventory is positioned in a local market warehouse in anticipation of responding to customer needs.

demurrage

use by railroads for holding a railcar beyond 48 hours before unloading the shipmnent

consolidation

warehouse receives inventory from a number of sources that are combines into one large shipment to a CERTAIN destination. -lowest possible freight rate, timely, controlled delivery and reduces congestion at receiving dock

unit load

when mullet master cartons are grouped together for handling the competitive is referred to as a unit load