Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Supply Chain > Chapter 9 > Flashcards

Chapter 9 Flashcards

(83 cards)

Start Studying
1
Q

What is logistics

A

the part of supply chain that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information, from the point of origin to point of consumption, in order to meet customer requirements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Inbound Logistics

A

move goods and materials from suppliers to buyers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Material Handling

A

move goods and materials between sites

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Outbound logistics

A

move finished goods to the customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The true value of warehousing

A

lies in having the right product, in the right place, at the right time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Warehousing provides

A

time and place utility; the availability to give materials true value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Warehouse

A

facility used to store purchases, work-in-process, and finished goods inventory, packaging material, MRO, and other supplies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Warehousing

A

function or process that allows a company to receive, store, breakdown, repackage, and distribute items to a manufacturing location, or finished products to a customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Decisions driving Warehouse Management include:

A
  • Number of warehouse facilities in the network
  • Site selection
  • Layout of the warehouse(s)
  • Methods of receiving, storing, retrieving, and distributing products and materials
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Primary Functions of a Warehouse

A

Recieving, storage, picking, packing, shipping

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Receiving

A

physical receipt of material, identification, inspection for comformance with the purchase order (quantity and damage), put-away, and preparation of receiving reports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Storage

A

the safe and secure retention of parts or products for future use or shipment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Picking

A

withdrawing components from stock to assemble or ship finished goods to a customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Packing

A

placing one or more items of an order into an appropriate container for safe shipping, marking and labeling the container with customer shipping destination data, and other information that may be required

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Shipping

A

Outgoing shipment of parts, components, and products. Includes packaging, palletizing, marking, weighing, and loading for shipment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Secondary Functions of a warehouse

A

quality inspections, repackaging, handling returned goods, assembly operation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Public Warehouse

A

A business that provides storage and related warehouse functions to companies on a short or long-term basis, generally on a month-to-month basis for a fee
- Owns their own equipment and hire their own staff to manage the facility
- Fees are typically a combination of a monthly storage fee, plus a pallet-in fee and a pallet-out fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Advantages of a Public Warehouse

A
  • No capital investment, maintenance, labor, or property taxes for the user
  • Flexibility: can be short or long term, seasonal products, add storage capacity on short notice
  • Lower unit costs and reduced risk
  • Access to special features and services
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Disadvantages of a Public Warehouse

A
  • Potential for incompatible computer systems
  • Specialized services may not be what is required/needed
  • Space may not be available when/where needed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Contract Warehouse

A

A variation of public warehousing that handles the shipping, receiving, and storage of goods on a contract basis for a fee
- Years rather than months

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Advantages of a Contract Warehouse

A

Services: client can obtain specialized services tailored to their needs
Cost: can be bundled in the contract and negotiated at a lower cost
Control: contract warehousing offers a degree of control at a reasonable price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Disadvantages of Contract Warehouse

A

Duration: the client company is expected to enter into a contract for a specific period of time, generally 3 years
Location: might not be ideal
Contract: Renegotiate contract every 3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Private Warehouse

A

A storage facility that is owned by the company that owns the goods stored in the facility
- Generally established by companies that have a large volume or highly valuable goods, or the need for some type of specialized storage or handling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Advantages of Private Warehouse

A

Control: offers greater flexibility in designing the warehouse and gives users significant control over operations
Visibility: inventory, material flow, handling, supervision, and associated costs
Cost: Operating cost can be 15-25% lower if the company achieves at least 75% utilization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Disadvantages of a Private Warehouse
High Start up cost: capital to build/buy warehouse, long term investment, cost of hiring and training employees, etc Fixed Location: Not easy to move to another location if the market changes Fixed Size and Costs: when volume is low, the company still assumes fixed costs
26
Public Warehouses best for
low volume, short duration, no special equipment needed
27
Contract Warehouses best for
moderate volume, longer duration, lack funding and resources, leverage existing technology, prefer less management attention
28
Private Warehouses best for
high volume, want better control of the operation, long-term confidence in the location, need cost savings
29
Consolidation Warehouse
Warehouse operation that recieves products from different plants or suppliers, stores them, and then combines them with similar shipments from other plants or suppliers for further distribution
30
Break-Bulk Warehouse
Warehouse operation that divides full truckloads of items from a single source or manufacturer into smaller, more appropriate quantities for use or further distribution
31
Cross-Docking Warehouse
The logistics practice of unloading materials from an incoming truck or railcar and loading these materials directly onto outbound trucks or railcars, with little or no storage in between to reduce inventory investment and storage space requirements
32
The main reasons cross docking is implemented
1. Provides a central site for products to be sorted and combined for delivery to multiple destinations in the most productive and fastest method possible 2. Consolidate: combines smaller product loads into one method of transport to save on transportation costs 3. Break-Bulk: break down large product loads into smaller loads for transportation for an easier delivery process to the customer 4. Customs: handle all customs and importation requirements
33
Warehouse Network
the number of, and the relationship between the warehouses that a company has in their organizational structure
34
Trade-offs that will determine how many warehouses the company needs and where they should be located are:
The level of customer service the company wants to provide The amount of inventory the company is willing to invest in
35
Single Warehouse
Positives: less complicated, operating costs and inventory will be lower, no duplication of equipment Negatives: single warehouse may take longer to deliver product to some customers who are remote from central location
36
Multiple Warehouses
Positives: potentially faster delivery to customers from a decentralized network that is geographically dispersed throughout the market, assuming adequate inventory in each warehouse Negatives: more complicated, operating costs and inventory higher, network is decentralized
37
Hybrid Warehouse Approach
hub and spoke warehouse: there is a centralized warehouse (hub) which holds most of the inventory, linked to a series of smaller geographically dispersed warehouses which hold only a small amount of inventory to support their local area in the immediate time frame
38
LEAN Warehousing
Cross Docking, Reduced Lot Sizes and Shipping Quantities, Increased Automation, Green Warehousing
39
Third Party Logistics
an outsourced provider that manages all, or a significant part, of an organizations logistics requirements for a fee
40
Advantages of using a 3PL
Cost: eliminates the need for a company to invest in a warehouse space Logistics Expertise: knowledgeable of industry best practices and the latest developments in technology Efficiency: 3PL's can leverage relationships and volume discounts, which result in lower overhead and the fastest possible service
41
Disadvantages of using a 3PL
Control: Company will not have direct control over the logistics operation Dependency: outsourcing logistics creates a dependency on the 3PL Pricing: the company is locked into the pricing model specified in the contract
42
Fourth Party Logistics
interface between the client company and multiple logistics service providers, company selects lead logistics partner that is charged with managing the activities of all the other 3PLs used by company
43
Advantages of Cross Docking
Transportation cost savings, Operational efficiency, Inventory efficiency
44
Market Positioned Strategy
Warehouses set up close to customers to maximize distribution services and improve delivery
45
Product Positioned Strategy
warehouses are set up close to supply sources to collect goods and consolidate before shipping out to customers
46
Intermediately Positioned strategy
warehouses are set up somewhere midway between the supply sources and the customers to try to balance costs, inventory, and customer service
47
Transportation
the function of planning, scheduling, and controlling activities related to the mode, carrier, and movement of inventories (products) into and out of an organization
48
Objectives of transportation
1. To maximize the value to the company through price negotiations 2. To make sure service is provided effectively 3. To satisfy customers' needs (internal and external)
49
Contract Carrier
Person or company who transports freight under contract to one or a limited number of shippers
50
Common Carriers
Person or company who transports freight for a fee that can be hired by anyone to transport goods
51
Private Carriers
person or company that transports its own cargo as a part of a business that produces, uses, sells, or buys the cargo that is being hauled
52
Exempt Carriers
Person or company specializing in services or transporting commodities exempt from regulation by the Interstate Commerce Act
53
Truck
most flexible mode of transportation, 80% of US freight Short haul= 0-200 miles Long Haul= >200 miles
54
General Freight carriers
A trucking company which handles a wide variety of commodities in standard trailers
55
Specialized Freight Carriers
A trucking company which handles the movement of cargo that requires specialized equipment for transportation because of the shipment's type, size, weight, and shape
56
Less Than Truckload (LTL)
the transportation of relatively small freight, ie the freight does not require the entire space of a truck MANY SHIPPERS MANY PRODUCTS
57
Full Truckload (FTL)
the transport of goods that fill up a full truck, or a partial load shipment occupying an entire truck ONE SHIPPER/ 1 OR MORE PRODUCTS
58
Rail
Competes when distance is long and shipments are heavy/bulky - Rail is slow and inflexible but it has MOST CAPABILITY 9% of total US freight spend
59
Pipeline
Most reliable, lowest per unit cost, limited variety of commodities, materials are transported in liquid or gaseous state
60
Air
fastest, most expensive, cannot carry extremely heavy or bulky cargo, high cost to weight ratio items
61
Water
Inexpensive, very slow and inflexible, primarily used for heavy, bulky, low value materials like coal, grain, sand, and petroleum
62
Intermodal Transportation
use of multiple modes of transportation to execute a single transport shipment
63
Cost of Service Pricing
the setting of a price for a service based on the costs incurred in providing it
64
Value of Service Pricing
a pricing strategy which sets prices based on the value perceived by the customer
65
FOB Origin
Seller places goods Free on board with the carrier at the sellers location and buyer pays freight costs - Ownership of the goods passes to buyer when carrier accepts goods
66
FOB Destination
Seller places goods Free On Board to the buyer's place of business, seller pays freight costs - Ownership of goods remains with seller until goods reach buyer
67
Freight Forwarder
consolidates LTL shipments into FTL shipments
68
Load or Transportation Broker
Brings shippers and carriers together
69
Shippers Association
nonprofit cooperatives which arrange for members shipping
70
Intermodal Marketing Company
purchase blocks of rail capacity and sell it to shippers
71
Warehouse Management Systems
track and control the flow of goods from receiving dock to outbound shipment
72
Transportation Management System
Used to select the best mix of transportation services and pricing
73
Global Trade Management System
Provides global visibility, standardization, and documentation to comply with international trade regulations
74
Reverse Logistics
involves the process of moving a product from the point of customer receipt back to the point of origin to recapture value or insure proper disposal
75
5 Rs of Reverse Logistics
Returns, Recalls, Repairs, Repackaging, Recycling
76
Problems with Reverse Logistics
Lack of information systems to handle returns, lack of worker training in reverse logistics procedures, little or no identification on returned packages
77
Return of Unsold Goods
understanding that goods may be returned for credit if they are not sold (newspapers, magazines) - acts as an incentive for downstream members to carry more stock, risk is that downstream member might exploit situation and return large volumes
78
Green Reverse Logistics Programs
Can have a positive impact on the environment through activities such as recycling, reusing materials and products, refurbishing unused products
79
Interstate Commerce Act of 1887
created the interstate commerce commission
80
ICC Termination Act of 1995
Interstate commerce commission was eliminated
81
Pros of Regulation
Tends to assure adequate transportation service throughout the country Protects consumers from monopoly pricing, safety, liability
82
Regulation Cons
Discourages competition Does not allow prices to adjust based on demand or by negotiation
83
Deregulation
encourages competition and allows prices to adjust as demand and negotiations dictate

Supply Chain (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions