Chapter 1.1 Flashcards
1
Q
Define stores
A
Small, local storage facility for immediate-use items
2
Q
Define warehouse
A
Large-scale storage facility - can be ‘stand alone’ or ‘integrated’
3
Q
Define distribution centres and distribution hubs
A
Warehouses that are intended to be a focal point for a specific activity for a geographic area
4
Q
Define cross dock
A
A warehouse location where goods received from suppliers wait for immediate shipment
5
Q
Define stockyard
A
An open area (which may have a canopy or some protection) often used to store bulky stock items, vehicles and appropriate materials
6
Q
Give an example of a standalone warehouse
A
Not connected to manufacturing, assembly or retailing
7
Q
Give an example of an integrated warehouse
A
On the same site that materials or products are used by or sold to external users
8
Q
Name 10 things that stores and warehouses may contain
A
- Raw materials
- Partly processed materials
- Part or fully assembled components
- Spare parts and maintenance items
- Items in transit, cross dock or awaiting delivery instructions from customers
- Items returned from customers or users
- Old, obsolete, dead or quarrantined stock awaiting action or disposal
- Items used as part of processing and manufacturing
- Equipment stored for hire or use by the organisation in various sites
- Items used in marketing, sales, promotions or for other support functions
9
Q
Name 4 things stockyards are used for
A
- Bulk loose or packaged materials
- Bulky or oversized items that may be difficult to move inside
- Materials that may require specialised handling, loading and unloading
- Equipment suitable for outside storage, for example, earth-moving machinery
10
Q
Name 4 purposes of stores and warehouses
A
- To make stock available to internal and/or external customers in alignment with the stocking decisions of the organisations
- To maintain a safe environment for workers in the stores and warehouses
- To maintain a secure environment to avoid stock losses
- To maintain a suitable environment for stock, minimising losses from damage and deterioration
11
Q
Name 5 things that store and warehouse managers and staff need to do to fulfil the purpose
A
- Retrieve, inspect, record and store stock received
- Retrieve, record and release stock to authorised persons, providing documentation and packaging as required
- Report and liaise internally and externally on stock availability, re-ordering and future stock levels
- Minimise stock losses and damages to stock
- Manage and account for returned stock inwards and stock returned to suppliers
12
Q
Define lead time
A
The amount of time from placing the order to the goods/services being delivered
13
Q
Name 2 things you should consider in regards to the supply chain when deciding the volume of stock that is ready for immediate use
A
- There may be a long delay or long lead time involved in obtaining stock, meaning that larger stock volumes need to be kept
- There may be near-zero stock held as items are available in hours, or overnight
14
Q
Name 2 impacts of low stock to the supply chain
A
- Stock is not available at the times of higher than expected demand
- There are delays and additional costs to achieve supply
15
Q
What do lower stock levels result in?
A
Lower overall costs to the supply chain
16
Q
Name 7 types of storage and distribution centres
A
- Centralised warehouse
- National warehouse
- Regional warehouse
- Local warehouse or stores
- Warehousing in another country
- Outsourced warehousing
- Partnering
17
Q
Define centralised warehousing
A
At a single location that can be used to supply a whole country
18
Q
Define national warehousing
A
Used to receive and manage goods being imported into the country
19
Q
Define regional warehousing
A
Can be used to supply an area of a country
20
Q
Define local warehousing or stores
A
Storage at many locations situated close to the users or customers
21
Q
Define warehousing in another country
A
Useful when servicing multiple countries
22
Q
Define outsourced warehousing
A
Storage may be outsourced to a specialist location
23
Q
Define partnering
A
Warehousing can be achieved by partnering with other organisations in the same industry or other industries
24
Q
Name 5 factors influencing locations of storage
A
- Cost of location
- Availability and suitability of the building
- Availability and suitability of staff
- Nature of the items to be stored
- Access to transport infrastructure
25
Name 5 examples of having access to transport infrastructure
1. Access to ports and airports for internal transport, import and/or export
2. Access to inland waterways
3. Access to a good road network
4. Closeness to suppliers
5. Closeness to customers
26
What is the impact of not having access to transport infrastructure
Customer service is reduced. Higher costs may be incurred and/or loss of business may result
27
What is usually the solution when deciding a warehouse location?
Optimisation - best overall result - of multiple factors
28
Qualitative analysis
Analysis based on opinions and statements (which are often non-quantifiable and referred to as subjective) rather than numerical or statistical evidence
29
Quantitative analysis
Analysis based on numerical or statistical based information (often referred to as objective) rather than opinions and statements
30
Inventory
Components, raw materials, work in progress, finished goods and supplies required for the creation of goods and services for the customer. It can also refer to the number of units and/or value of the stock of goods held by a company
31
What 2 step approach should organisations take when deciding on storage facilities and locations
1. First analyse and assess your requirements, facilities and performance
2. Future needs are then added based on projections and any change or development of the organisation
32
Name 3 things involved in a quantitative analysis
1. Cost analysis for the current premises and future predictions based on current premises: these costs can be calculated as overall figures
2. Cost analysis for routine operations: these are costs which are not premises based
3. Current inventory performance measures: these are current measurements and future requirements, such as lead times, service levels, rate of stock turn, stockouts in a given period and stock cover
33
What data are most storage facility and location decisions based on?
A combination of qualitative and quantitative analysis
34
Cost of last mile (COLM)
The cost of last mile or cost of final mile (COFM) relates to the disproportional cost of the last mile in a distribution network and the hardest for an operater (eg. Amazon) to overcome
35
Where can having multiple warehouse locations significantly help organisations?
Where long delivery distances are involved or where transport links and delays are encountered
36
What 2 things are the number and choice of locations for distribution hubs often based on?
1. Fluid demand patterns
2. Changing customer locations
37
What does deciding the optimum number of warehouses in any situation and their locations involve?
A systematic approach where multiple options are considered and evaluated
38
Name 5 structural features that need to be considered when designing a store or warehouse
1. Single floor design/layout
2. Multiple floors design/layout
3. Light, temperature, humidity and ventilation
4. Warehouse equipment requirements
39
What does a single floor layout mean?
There is no requirement for higher-level access via lifts and stairs. Weight loading issues are far less important provided a suitable solid ground floor is in place
40
What may a single floor layout allow for?
Full use of the height of the building, subject to appropriate racking and equipment
41
What do multiple floor layouts allow you to maximise?
The use of the available land and each floor can be allocated different products, creating zones
42
What 4 things need to be considered in a multiple floor layout?
1. Construction of the floors
2. Full stock weight loading
3. Equipment weight
4. Racking weight
43
What aspect of multiple floor layouts require maintenance
Lifts, conveyors and hoists
44
Why may some high-volume locations need to duplicate access equipment?
In case of breakdowns which could cause operational delays
45
Whats a good way to increase the storage density of a building?
Multiple and mezzanine floors
46
Name 4 implications of multiple and mezzanine floors when it comes to manual handling and movement of goods
1. Increased reliance on forklift trucks with the associated requirement for training and licences
2. Involvement of lifts which often have onerous legislative requirements relating to usage, loading, capacity and maintenance
3. Changes to storage regimes relating to chemicals and flammable items being stored further inside a building
4. Use of cranes may have implications on health and safety and licencing conditions
47
What can natural light reduce the cost of?
Artificial lighting - it can also improve the environmental performance of the building
48
Name a disadvantage of using natural light
Some stock (particularly low grade plastics) react badly to direct sunlight and degrades with higher levels of UV light and some stock reacts badly to extremes of temperature or may require a specific temperature for storage
49
What in a warehouse could increase the levels of carbon monoxide and carbon dioxide and other hazardous gases which need to be expelled from the warehouse to maintain a healthy working environment?
Fossil-fuelled forklift trucks and manual handling equipment
50
Why might heavy-lift cranes require integration within the structure of the building which could affect the design?
Equipment may have safe operating requirements of space limitations
51
What needs to be considered when getting goods in and out?
The sizing and positioning of both external and internal doors. This often requires the use of automated access doors and/or curtain screening
52
Docks
A feature of warehouse design - used for unloading and loading vehicles (loading and unloading bays)
53
Name an advantage of having dual use in and out docks
It increases flexibility as there may be a requirement to have many collections at particular times during the day
54
What does having sole-use docks ensure?
That a minimum number of docks are available for specific transport
55
How should goods in and goods out bays be designed?
To allow vehicles to safely position themselves - so the exterior space for manoeuvring becomes important. It also needs to allow for appropriate equipment to load and unload
56
How is efficient and effective loading and unloading achieved?
By a dock design that places the loading and unloading vehicles rear platform at the same height as the warehouse floor
57
What does the design of the doors area need to do?
Protect the warehouse interior but allow easy access for the equipment used to load and unload the vehicles
58
Zoning
An arrangement in a stock yard, warehouse or stores facility where areas are determined based on requirements for different access, or the characteristics of different types of equipment or stock
59
What does COSHH stand for?
Control of Substances Hazardous to Health
60
What do stockyards need to have enough allocated space for?
Stock storage and movement
61
What type of flooring is beneficial in a stock yard design?
A flat ground area that is resilient to the materials and stock stored - an uneven ground can make movements difficult and may make stock storage unstable
62
Why is good drainage in a stockyard design essential?
To ensure waterlogging and damage to the surface do not occur
63
What is zoning dependent on?
The items to be stored, frequency of movements and the equipment needed
64
Name 4 things stores, warehouses and stockyards must comply with?
1. Health and Safety at work Act 1974
2. EU OSH Directives
3. Manual Handling Operations Regulations 1992
4. Control of Substances Hazardous to Health Regulations 2002
65
What aspects of security should be considered in stockyard design?
1. Accessibility for the public should be restricted on-site where possible
2. External structure should resist attempts to gain unauthorised entry and designs accommodating higher risk stock should reflect a higher standard of security
66
What is good practise in terms of the security of a stock yard?
To isolate delivery and collection vehicles from materials and products
67
What do stores tend to work based on?
Immediate-use requirements
68
Define Business to business
Commercial trade transactions between businesses (as opposed to business-to-customer)
69
Order accumulation bay
An area in the warehouse where multiple elements of. delivery are stored until the shipment is complete and can be shipped as one consignment
70
Cross-docking
Activity in a warehouse or stockyard where a delivery is unloaded but then prepared for despatch without being stored. In some cases a vehicle may be awaiting loading
71
Name 3 methods that organisations may take to reduce or eliminate storage requirements
1. Some warehouses may receive goods-in and hold them in an area for same day collection
2. Others which have outbound deliveries being collated in an order accumulation bay, going to customers
3. Cross-docking, with a goods-in delivery being transferred to one or more goods-out bays ready for onward journeys
72
What 8 elements need to be considered when planning or before changing layouts
1. Size of stock
2. Shape of stock
3. Weight of stock
4. Volume of stock
5. Storage temperature
6. Conditions
7. Hygiene
8. Legislation
73
Tote box
Reusable storage box. These can be open or have lids or flaps to close them and come in a large variety of sizes and weight loadings
74
Pallets
Platform structures designed to support a load and be lifted using the forks typically seen on forklift trucks and other equipment. These are in a variety of standard sizes and can be made of many materials including plastic, resin, board or timber
75
Stillages
A robust pallet sometimes made of steel or very heavy duty plastic with caged sides. This can improve the retention of contents and increase stacking potential
76
Containers
Typically sized at 20ft or 40ft, these are large, usually steel, boxes used for large-scale shipping, particularly over long distances and internationally
77
Drum/reels
Container for stock, which is usually cylindrical and can be made from a variety of materials. Contents are usually loose material or liquids
78
Picking
The activity of retrieving stock from storage
79
Are there European and International standard specifications for pallets?
Yes
80
Why are there European and international standard specifications for pallets?
They allow for standard lifting equipment to be used
81
Why can tote boxes take up very little space?
Many are stackable when empty
82
What is an efficient way of using pallets, stillages or containers?
Some organisations have arrangements with suppliers for delivery of these products and return them after the items are used. This means that space in the stock area is required for empty pallets, packaging and tote boxes that will be returned to the originator
83
Why should stock not be stored directly on the floor?
It becomes more difficult to lift and is much more vulnerable to damage caused when cleaning the floor, spillages and leaks
84
Name 4 types of special racking available to maximise the space usage for a wide range of items and the layout of the area needs to allow for this
1. Pallet racking
2. Tote racking
3. Bar, sheet and road racks
4. High value items benefit from isolation and additional security measures - keep these away from outer doors and walls
85
What does pallet racking have the capability of?
Taking multiple pallets so that they can be removed without the need to unload other pallets - they sit on shelves
86
What is tote racking spaced to allow?
Easy access to boxes for picking or whole box storage retrieval
87
What are bar, sheet and rod racks designed to allow?
Safe storage, easy access and efficient space usage. Racking usually separates sizes or types either vertically or horizontally
88
Why are cable spools often mounted on dispensers?
To allow lengths to be cut
89
What can stock cages do?
Hold single items or groups of items
90
What do cages with wheels offer?
Flexibility as they can be moved around the warehouse without the need for other handling equipment
91
Name 12 specific products that may have environmental considerations
1. Bulk paper
2. Food supply chain warehouses
3. Electronic components
4. Chemicals
5. Bottled gas
6. Liquid products
7. Fabric and garments
8. Packaging materials
9. Metals
10. Food supply chain ingredients
11. Gloves, goggles, face masks (special handling requirements)
12. Legislation - COSHH
92
What is important to do if you have items in your warehouse with specific environmental considerations
Zoning
93
Flow
The ability of stock to be moved around a facility in the quickest and safest way. A poor flow makes movements slower and reduces efficiency
94
Aisles
Clear areas between racking or pallet stacks
95
Trends 7S (7 classic trends that can be seen in demand and inventory usage)
1. Stable - demand is not rising or falling
2. Soaring - demand is rising
3. Shrinking - demand is falling
4. Seasonal - demand rises and falls cyclically, normally in line with the seasons
5. Surging - demand sees a temporary and normally steep increase which falls back later
6. Sporadic - demand is infrequent and unpredictable
7. Shutdown - demand is focused around events such as a factory shutdown, maintenance period or other similar events
96
Name 6 possible solutions to the high irregular or seasonal demand problems
1. Creating flexibility within the design of the building and layout to allow for seasonal additional storage
2. Eliminating unused and unwanted stock to free up space
3. Acquiring temporary additional storage
4. Getting a supplier to hold additional stock for short-notice delivery
5. Getting a supplier to deliver direct to customers or usage point
6. Getting a specialist logistics company to support the additional demand
97
Mezzanine floor
A floor area typically inserted in a high-roofed building to create an elevated additional working or storage space
98
How can you get additional space?
By introducing different racking or installing a mezzanine floor
99
Quarantine area
Area set aside for items which are awaiting inspection or testing. There may also be faulty items or items awaiting return to the supplier. The idea is that these items must not enter storage or be made available until cleared for use
100
Kitting
Activity in a warehouse or store of assembling groups of items that are to be used together - a 'kit of items' is created for a specific task
101
Return (or reverse) logistics
The storage, handling and movement of materials or products in the reverse direction from original supply. This may involve faulty goods, surplus goods or claims under guarantee. Some organisations offer a return of spare parts for recycling or re-use; end-of-life recycling or scrappage is also possible
102
Name 4 considerations of space required in a stockyard for other operations
1. Quarantine area
2. Staffing areas
3. Area for parking stock handling equipment
4. Waste handling
103
Name 5 additional stock handling tasks to take into consideration when it comes to space required in the stockyard for other operations
1. Unpacking bulk items and repacking
2. Adding additional labels
3. Grouping products that must be sold together
4. Kitting - preparation of a range of items into a single unit for a specific use
5. Return (or reverse) logistics - handling items returned from customers or down the supply chain for exchange or refund
104
Bottleneck
A restriction inside a warehouse, store or production line that holds up or slows down activity. This may be caused by poor layout, access difficulties or stockouts or a limitation in production capacity
105
Surge capacity
Spare capacity or special options which can be applied in periods of excessive demand - an example of this may be the demand placed on manufacturing capacity during a war
106
How is a faster flow achieved?
By the pickers knowing where to store or retrieve the correct items, with reduction in the 'trying to find' time
107
Name 2 flow related features of a warehouse
1. Location map
2. Signage
108
What will identify the locations of each item of stock held?
The stock management system
109
Name 4 ways identification can be achieved
1. Letters
2. Numbers
3. Colours
4. Symbols
110
What does inbound stock need to be processed without?
Without interfering with picking or packing ready for outbound despatch
111
What can effective ERP systems do?
Manage and optimise pick routes to minimise clashes with other pickers and reduce unnecessary movements
112
What should the picking order be arranged to provide
Efficiency
113
Name another way of enhancing flow
By processing several orders at the same time, so that a single journey around the system can pick several different orders
114
What is a 'through flow' layout designed to do?
Work in straight lines. Specific design elements are separated into goods in and goods out docks
115
How can picking-type separation improve flow?
By separating items that require detailed picking by hand from those that can simply be lifted using equipment or handled onto equipment
116
What type of warehouse design allows for the order to be split if stock is required from more than one area
Through-flow
117
What is the main feature of a U-shaped layout
Goods in and goods out are at the same end of the warehouse which allows lifting equipment that has just been used for delivery to move a short distance to service despatch
118
How do organisations try to reduce the costs of storage?
Using an efficient and effective warehouse layout
119
Name a method of increasing the area available for storage?
Increase the number of racks by reducing the aisle space between racks
120
What does the aisle space required depend on?
The type and size of stock stored, the size of the storage bins/pallets and the racking used
121
What is the aisle width of a typical warehouse with conventional racking?
2.5 m to 4.5 m
122
What is the typical aisle width of a narrow aisle design
2 m
123
What is the typical aisle width of a very-narrow aisle design
1.4 m
124
What width would be required for access to small items in small tote boxes that do not require equipment to access the stock?
1m
125
What trends come with narrow aisles
The narrower the aisles are the more specialist equipment is needed and the less flexible the storage becomes
126
Can racking installations be changed at short notice?
No
127
What can installation of double deep storage increase?
The density of stock
128
What does double deep storage mean?
Two sets of totes or pallets are stored in a position, one in front of the other
129
Name an advantage of double deep storage
More storage space is available by eliminating one aisle, but this does mean that if access to the rearmost pallet is required, the front one will need to be moved first
130
What principle does carousel-type storage work on?
Moving storage either vertically or horizontally so that the correct item can be picked
131
Name 4 ways that organisations can increase volume of space available for storage without adding new buildings
1. Use racks that can take stock on shelving almost up to the ceiling height
2. Stack pallets on top of each other
3. Installation of double deep storage
4. Carousel-type storage
132
When is the flexibility of layout and racking beneficial?
If the stock requirement is either variable through the year or potentially changeable across the lifetime of the storage facility
133
Name an advantage of establishing fixed positions for stock items that are only reviewed periodically
Specific stock can be relied on to be in the same position time after time
134
Name an disadvantage of establishing fixed positions for stock items that are only reviewed periodically
Variances in stock volumes over time may result in some areas being over-filled and others with space available
135
Name an alternative to establishing fixed positions for stock items that are only reviewed periodically
Have random (or semi-random) positions
136
What is fully dynamic racking
Robots collect a portion of racking and return it to the stores when the pick has been made
137
What are warehousing decisions inevitably based on
Estimates and the provision of permanent facilities requiring a long-term commitment
138
Flexible warehousing
Term used to describe any technique which allows the short-term ability to increase or decrease storage space
139
Consignment stocking
A technique of acquiring stock from a supplier and only paying when sold or used rather than paying following a trade credit period
140
Name 6 ways of being flexible in order to meet additional or peak storage requirements
1. Temporary storage on site
2. Temporary storage in other buildings, rented or owned
3. Adopting flexible warehousing
4. Suppliers holding stock with arrangements for short-notice deliveries or collections
5. Use of third-party logistics company storage facilities
6. 'Early' delivery of stock or supply on a 'consignment' basis by negotiation with customers
141
Name the 2 approaches to flexible warehousing
1. Use of warehousing also used by other organisations, with the idea that the area used by an organisation could be increased or decreased as others sharing the facility also change their requirements
2. Very short-term warehousing is offered in the market where organisations may make their requirements for space open online to offers or bid for available space
