Lecture 4

Question 1

Pre-sorted operations (pre-distribution)

Answer 1

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

Question 2

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

Answer 2

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

Question 3

When to cross-dock?

Answer 3

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

Question 4

Risk pooling

Answer 4

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

Question 5

Better direct than cross docking when:

Answer 5

• 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)