Session 5 - Inventory Mgmt and Warehouse Operations Flashcards
(23 cards)
What does Warehouse Management (WM) cover?
All warehouse operations — from receiving goods to storage, picking, packing, shipping, and value-added services.
What are the key goals of Warehouse Management?
- Maximize efficiency & effectiveness
- Reduce time, resources, and manual labor
- Ensure sustainability and safe working conditions
What should not be confused with Warehouse Management?
Inventory Management, which focuses on stock levels and cost control, not process flows.
What does the acronym G-PODC stand for in core warehouse functions?
- Goods Receiving
- Put-away
- Order Picking & Packing
- Dispatch
- Cross-docking
What is a pro of the Pick-by-Paper method?
Low tech, easy to train
What is a con of the Pick-by-Scan method?
Requires tech investment
What is a pro of the Pick-by-Voice method?
Hands-free, safe
What is a con of the Pick-by-Light method?
Fixed location, high cost
What is a pro of the Pick-by-Vision method?
Fast, low training time, scalable
What is a con of the Pick-by-Vision method?
Battery life, integration complexity
Why does inventory management matter?
- Ties up working capital
- Occupies space and labor
- Impacts cash flow and service levels
What is the key KPI for inventory management?
Inventory Turnover = Annual Sales / Avg. Inventory
What does a higher inventory turnover indicate?
Better performance, lower holding costs
What are the reasons to hold inventory?
- Buffer against uncertainty
- Hedge against price volatility
- Cover for emergencies and lead times
What mnemonic can be used to remember reasons to hold inventory?
B-HUGS-MC: Buffer, Hedge, Uncertainty, Goods demand, Seasonality, Misc., Customer service
What are core approaches to inventory reduction?
- Optimize order size & frequency
- Cut obsolete inventory
- Reduce transit times and supplier issues
- Apply delayed differentiation & part commonality
- Pool inventory (centralization)
What is Just-In-Time (JIT)?
A philosophy that minimizes inventory to fix root problems
What does the phrase ‘Inventory hides problems’ imply?
When removed, inefficiencies surface and are fixed.
What are the types of warehouses in the supply chain?
- Distribution centers
- Transit warehouses
- Storage warehouses
How do location choices influence warehouse operations?
They influence costs vs. response time (U-shaped tradeoff curve).
What is the main goal of warehouse management?
To increase efficiency and optimize warehouse operations.
What are signs of good inventory management?
- High inventory turnover
- Low holding costs
- Consistent service levels
What is JIT and why is it useful?
Just-in-Time reduces inventory levels to uncover inefficiencies and lower costs.
