Study Guide Essay

Bills of Lading: * Shows title to the goods, name and address of the cosigner and consignee * Summarizes the goods in transit and their class rates * Straight Bill * Non-negotiable * Contains terms of the sale including the time/place of title transfer * Order Bill * Negotiable * Cosigner retains original until bill is paid * Common carrier liable for all losses, damage, or delays in shipment (there are exceptions) * Reasonable dispatch * Freight not accepted stored at owner’s cost * Single most important transportation document * “Recipe”

Objectives of Warehouse layout design: * Develop a demand forecast * Determine each item’s order quantity * Convert units into footage requirements * Allow for growth * Allow for adequate aisle space for materials handling equipment * Provide for the transportation interface * Provide for order-picking space * Provide storage space – use an appropriate product storage plan – maximizes space utilization and product protection * Provide recouping, office and miscellaneous spaces * Use one story facilities where possible – provides more usable space per investment dollar – less expensive to construct than multistory facilities * Move goods in a straight-line (direct product flows) – avoids backtracking and costly travel time * Use the most efficient materials handling equipment – improves labor productivity and safety – reduces travel time * Minimize aisle space – provides more storage and processing capacity * Use full building height – vertical capacity – reduces building footprint and land requirements * Objectives * Cubic capacity * Protection (product protection – hazardous materials, temperature-sensitive products, avoid stacking/storing light or fragile items) * Efficiency – product placement * Mechanization * Productivity * Flexibility * Continuous improvement is the ultimate facility objective

Value Adding Roles of Distribution Operations: * Assembly services * Inventory management and visibility * Product kitting, bundling and unbundling * Product postponement * Production sequencing * Recycling, repair and returns management

Value-added capabilities of WMS (warehouse management systems): * Advanced systems generate: * Performance reports * Support paperless processes * Enable integration of materials-handling equipment * Picking systems and sorting systems * Leverage wireless communication tools * Support automatic identification equipment data collection * Labor management * Task interleaving * Systems integration – ability to interface WMS with the enterprise resource planning (ERP) system, order management systems, and transportation management will provide a strong flow of information across organization and SC. * Activity-based costing/billing * Multifunction distribution

Distribution facilities – what purpose do they serve? * Accumulation * Receipt of goods from a variety of sources * DC serves as a collection point for product coming from multiple origins and provides required transfer, storage or processing services * Consolidate orders and shipments for production and fulfillment processes * Fewer deliveries for customers to schedule and manage * Transportation cost savings * Sortation * Assembling like products together for storage in the distribution facility or for transfer to customers * Proper sortation is essential for the effective management of inventory and fulfillment of customer orders * Allocation * Focuses on matching available inventory to customer orders for a SKU * Break-bulk capacity promotes product availability * Assortment * Assembly of customer orders for multiple SKUs held in the

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