Solved Questions

Distinguish between warehouses and distribution centers.

Warehouses emphasize the storage of products and their primary purpose
is to maximize the use of storage space. In contrast, distribution centers
emphasize the rapid movement of products through a facility and thus
attempt to maximize throughput (the amount of product entering and
leaving a facility in a given time period).

Explain the four ways that warehousing facilitates the regrouping function.
Regrouping involves rearranging the quantities of products as they move
through the supply chain and it takes four forms: accumulating (also
referred to as bulk-making), allocating (also referred to as bulkbreaking), assorting, and sorting.
Accumulating involves bringing together similar stocks from different
sources, while allocating involves breaking larger quantities into smaller
quantities. Assorting refers to building up a variety of different products
for resale to particular customers, while sorting out refers to separating
products into grades and qualities desired by different target markets.

Discuss some of the value-added activities that can be performed by

warehouses and distribution centers.
These value-added activities include assembly, custom labeling, light
manufacturing, product testing, repackaging, and reverse logistics
considerations, among others.

What is cross docking in warehousing?

Cross-docking can be defined as a process where a product is received in
a facility, occasionally married with product going to the same
destination, then shipped at the earliest opportunity, without going into
long-term storage.

What are the advantages and disadvantages of private warehousing?

One disadvantage to private warehousing is that they are characterized by
high fixed costswhich necessitates high and steady demand volumes.
In addition, a high fixed cost alternative becomes less attractive in times
of high interest rates because it is more costly to secure the necessary
financing. Private warehousing may also reduce an organizations
flexibility with respect to responding to changes in the external
environment.
As for advantages, private warehousing offers users a great deal of

control over their storage needs. More specifically, private warehouses

can be constructed to meet user specifications and companies can also
control product placement within a facility. In addition, private
warehousing offers access to products when an organization needs or
wants them.
Discuss why contract warehousing is becoming a preferred alternative for
many organizations.
Contract warehousing simultaneously mitigates the negative aspects and
accentuates the positive aspects of public and private warehousing. For
instance, contract warehousing allows a company to focus on its core
competencies, with warehousing management provided by experts.
Contract warehousing also tends to be more cost effective than private
warehousing, with potentially the same degree of control because key
specifications can be included in the relevant contract.

In terms of warehousing design, give examples of trade-offs involving space,

labor, and mechanization.
Spaciousness may not always be advantageous because the distances that
an individual or machine must travel in the storing and retrieving
functions are increased. On the other hand, cramped conditions can lead
to inefficiencies such as the product damage that can be caused by forklift
puncture and movement bottlenecks caused by inefficient aisle width.

Distinguish between fixed and variable (floating) slot locations. How might
they affect warehousing design?
A fixed slot location refers to a situation where each SKU has one or
more permanent slots assigned to it, whereas a variable slot location
involves empty slots being assigned to products based on space
availability. Fixed slot systems may result in low space utilization and
generally need to be larger than a variable slot facility.

What are some potential advantages to paperless warehousing operations?

There are several important benefits to paperless warehousing, such as
reduced clerical work, improved order picking efficiency, and a decrease
in picking and shipping errors. For example, most paper-based systems
require picked orders to be manually entered into a computer
system. This information is often verified at the order staging area, a
process that can delay shipping, add to processing costs, and does not
catch all errors.

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What is a warehouse management system (WMS)? How can it benefit

warehousing operations?
Warehouse management systems are software packages that control the
movement and storage of materials within an operation. Activities that
can be controlled by WMS include inventory management, product
receiving, and determination of storage locations, order selection
processes, and order shipping. Data entry errors can be dramatically
reduced and the travel times for order picking can be reduced by nearly
50%. Other benefits to WMS include reduced operating expenses, fewer
stock-outs, increased inventory accuracy, and improved service to
customers.
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What is OSHA?
OSHA is the Occupational Safety and Health Administration, an agency
of the U.S. federal government that has responsibilities for industrial
safety practices.
In Pakistan safety of warehouses is covered under Factories Act and EPA
regulations.