Chapter 10 - Warehousing management

Occupational Safety and Health Administration (OSHA)

A U.S. federal agency that regulates workplaces to ensure the safety of workers

Contract Warehousing

A long term, mutually beneficial arrangement which provides unique and specially tailored warehousing and logistics services exclusively to one client, where the censor and client share the risks associated with the operation

Hazardous material

Any item or agent which has the potential to cause harm to humans, animals, or the environment, either by itself or through interaction with other factors

Receiving

-Confirms receipt -Creates cutaway label -Directs stock to active or reserve location

Order picking

-Prioritizes orders -Prints pick tickets for best sequence -Prints labels for packing operations

Shipping

-Suggests shipping route -Creates shipping documents -Calculaties shipping cost

Verification

-Uses bar code scanning to verify order -Prints labels for shipping carton contents

Assorting

Building up a variety of different products for resale to particle customers

Fixed slot location

Each SKU has one or more permanent slots assigned to it

Distribution centers

Emphasize the rapid movement of products through a facility, and thus they attempt to maximize throughput

Warehouses

Emphasizes the storage of products, and their primary purpose is to maximize the usage of available storage space

Allocating

Involves breaking larger quantities into smaller quantities

Accumulating

Involves bringing together similar stocks from different sources, as might be done by

Variable slot location

Involves empty storage slots being assigned to incoming products based on space availability

Regrouping function

Involves 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

Public Warehousing

Is suppose to serve all legitimate users and has certain responsibilities to those users

Dunnage

Material that is used to block and brace products inside carrier equipment to prevent the shipment from shifting in transit and becoming damaged

Multiclient warehousing

Mixes attributes of contract and public warehousing, has become popular in the first part of the twenty-first century

Private Warehousing

Owned by the firm storing goods in the facility; private warehousing generates high fixed costs and thus should only be considered by companies dealing with large volumes of inventory

Sorting out

Separating products into grades and qualities desired by different target markets

Warehousing

That part of a firm's logistics system that stores products (raw materials, parts, goods-in-process, finished goods) at and between points of origin and point of consumption

Throughput

The amount of product entering and leaving a facility in a given time period

Cross-Docking

The process of receiving product and shipping it out the same day or overnight without putting it into storage

Reasons for Warehousing

To effectively and efficiently meet the firm's logistics objectives by protecting the inventories that: -support the customer service objective (ensuring availability) -smooth production (covering demand peaks) -allow the firm to to advantage of economies in procurement, production, and transportation -support from postponement (final assembly)

Warehouse automation

Utilizing mechanical or electronic devices to substitute for human labor