chapter 6 Flashcards
(12 cards)
Why hold inventories
Save due to large quantities
Lowers per unit cost w/ increased production
Quantity discounts
Consistently purchasing from vendors/suppliers
Measuring warehouse productivity
productivity, utilization, performance
productivity = output /input
utilization = output/ design compacity
design compacity = ideal output compacity
performance = comparing work to specific standard
warehouse signs (what factors affect it)
Using warehouses to support JIT
Trying to minimize inventory levels uder JIT program, while at the same time having sufficient inventories to avoid stock-outs requires a coordinated supply chain
Appropriate amount of inventory in hand
Public warehousing
Used for short terms
No large capital investment, loss control, flexibility
General merchandise warehouses, regriged storage , bonded, household goods, furniture, special commodity, bulk storage
Benefits =
Conservation of capital, meeting peak requirements, reduced risk, economies of svale, flexibility, tax advantages, knowledge of costs
Private warehouses
owned
Large capital investment
More control
Flexibility, cost, human resources, tax benefits
Contract warehouse
Long term lease
Flexibility, fixed payment
Partnership between user and provider of the warehousing service
Cross-docking
Immediately unload to another truck
Ideal for pre packaged shipments
Number of warehouses
Cost of lost sales
Inventory costs
Warehousing costs
Transportation costs
Focused factories
Multiple factories for mixed shipments
Several warehouse locations from which mixed shipments of the entire product line can be made to customers
How are warehouses used
support manufacturing
mix products from multiple production facillites
break-bulk or subdivide a large shipment of products
combine smaller shipments
perform value added services
