Lecture 4 Flashcards
Pre-sorted operations (pre-distribution)
-Suppliers prepare the shipment (packing, barcoding, labeling, princing, etc.) for your customers
Pick-to-zero (PtZ) operations (post-distribution)
-Order picking for customers carried out at the cross-dock facility
-At the end of the day nothing left
-Walmart mostly uses PtZ
When to cross-dock?
-Predictable, high demand and high cubic volume (toilet tissues and paper towels)
-Lead time is critical (perishable products)
-In case of high holding cost
Risk pooling
High variability centralized storing better. Lower safety stock is necessary.
Low variability decentralized storing, you will sell them anyway.
Find the right trade-off.
Better direct than cross docking when:
- Fragile products, difficult-to-handle products
- Fresh products (magazines, fruit), very short shelf-life (perishable)
- Large quantities, truckload volume per retail store (customer)
- Non-assortment products (make-to-order products)