Lecture 4 Flashcards

1
Q

Pre-sorted operations (pre-distribution)

A

-Suppliers prepare the shipment (packing, barcoding, labeling, princing, etc.) for your customers

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2
Q

Pick-to-zero (PtZ) operations (post-distribution)

A

-Order picking for customers carried out at the cross-dock facility
-At the end of the day nothing left
-Walmart mostly uses PtZ

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3
Q

When to cross-dock?

A

-Predictable, high demand and high cubic volume (toilet tissues and paper towels)
-Lead time is critical (perishable products)
-In case of high holding cost

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4
Q

Risk pooling

A

High variability centralized storing better. Lower safety stock is necessary.
Low variability decentralized storing, you will sell them anyway.
Find the right trade-off.

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5
Q

Better direct than cross docking when:

A
  • 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)
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