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