Chapter 5 Flashcards
(34 cards)
What is the second maturity stage of warehouse management?
Effective warehouse management
This stage involves formalizing objectives and activities in the distribution center.
What are the characteristics of the first maturity stage of warehouse management?
- No joint understanding
- Inefficient processes
- No official targets
- Managers involved in fire-fighting activities
What techniques create transparency in a distribution center?
- Warehouse strategy
- Service level agreements
- Standard operating procedures
- Activity-based costing
- Performance indicators
What information should be included in Service Level Agreements (SLAs)?
- Service definition and purpose
- Performance targets, tracking, and performance
- Service fees
- Control rules and exceptions
- Client duties and responsibilities
What does ‘responsiveness’ measure in service delivery?
How soon customers can expect a service
It applies to inbound handling, outbound handling, and value-added services (VAL), not storage.
What are the four parameters of responsiveness?
- Response time
- Frequency
- Time frame
- Fill rate
What are some reasons for service delays?
- Insufficient stock
- Goods delivered late to loading dock
- Transportation takes too long
What does ‘accuracy’ entail in service delivery?
Minimum percentage of service desires performed accurately
It is measured through cycle counts.
What dimensions should be considered for measuring accuracy?
- Product
- Quantity
- Condition
- Information
What is ‘flexibility’ in the context of warehouse services?
Volume range the distribution center can accommodate per customer and service
What are the two reasons for changing processes in warehouse management?
- To improve processes
- To accommodate new services
What is the purpose of standard operating procedures in warehouse management?
To help management and staff understand processes and improve overall impact
What does activity-based costing (ABC) help identify?
The costs of services and activities in distribution centers
What are the typical cost factors considered in time-driven activity-based costing (TDABC)?
- Building costs
- Fixture costs
- Equipment costs
- Materials costs
- Staff costs
- IT costs
- Inventory holding costs
- Overhead costs
What are the four processes costs are allocated to in TDABC?
- Inbound handling
- Storage
- Outbound handling
- Value-added services (VALs)
What does resource utilization show in warehouse management?
Amount of available time spent on activities
What does a fill rate measure?
Services available on time
It can be measured for inbound handling, VAL, and outbound handling services.
What are the four key performance indicators (KPIs) mentioned?
- Productivity
- Availability
- Accuracy
- Flexibility
What is the impact of management commitment on performance indicators?
It guides the introduction and effectiveness of performance indicators
What is the best practice for reporting management information?
- Use of management information systems
- Dashboards and drilldowns
What does performance management involve?
- Defining performance indicators
- Introducing performance indicators
- Reporting management information
- Performance management
What does WMS stand for?
Warehouse Management System
A system designed to support warehouse or distribution center management.
What is the main function of management information systems?
To convert data into management information.
Why are WMS and ERP systems considered insufficient for computing management information?
They do not have sufficient capabilities.
