SCMN 3720 Exam 2 | Questions and Answers What are the four main areas of operations management in a distribution facility? Process management Resource management Inventory management Performance management PRIP What's the definition of Process Management in a distribution facility? Process manag...
What are the four main areas of operations management in a distribution facility?
Process management
Resource management
Inventory management
Performance management
PRIP
What's the definition of Process Management in a distribution facility?
Process management ensures each process area has the space and resources needed
to execute the defined process
What are the key aspects of Process Management in a distribution facility?
1. ensure product is flowing in each area
2. identifying opportunities for process improvement and addition efficiency
3. maintain and ensure safe working environment
4. ensure proper training of the workforce to ensure efficiency and inventory control
5. monitor and maintain MHE and product storage and movement resources
What's the definition of Resource Management in a distribution facility?
Resource management ensures the necessary workforce and MHE resources are
available to support the forecasted volume and pick plan for a distribution facility.
What are the four key types of planning in distribution facility Resource Management
and their definitions?
workforce planning- ensuring the operation has both permanent and temporary
personnel needed to support the MONTHLY forecasted volume for the organization
labor planning- determining the necessary personnel by process area and BY SHIFT to
fulfill daily order volume
MHE resource planning- ensuring the required MHE is available for each shift and
process area to support the planned order volume
Pick/Wave planning- the optimization of resources and prioritization of daily warehouse
orders and tasks to ensure high levels of operational efficiency and on-time shipping
What's the definition of Inventory Management in a distribution facility?
inventory management ensures the accuracy, allocation and storage logic optimization
of inventory within the facility
, What are the five key areas of distribution facility Inventory Management and their
definitions?
1. INVENTORY CONTROL- inventory accuracy
2. CYCLE COUNTING- cycle counting strategies prioritize high demand items and
locations daily and weekly but also ensure all storage locations are audited within a
calendar year
3. INVENTORY ALLOCATION- ensures inventory is properly allocated and reserved to
customer orders
4. ABC ANALYSIS- current A items get placed in prime picking locations, while low-
demand items (C items) can be stored in less accessible areas
5. SKU SLOTTING- Update item slotting based on ABC analysis and current item
packaging dimensions.
ICI-ABC-SKU
Why is Performance Management important?
"you can only manage what you can measure"
It is critical to set key performance indicators to measure the success and needed
improvements in a distribution operation.
What three ways can Performance Management help distribution operations?
Improves efficiency
Improves customer satisfaction
Reduce costs
What are the six key KPI measurement areas for a distribution facility and why do you
need to measure each?
productivity
inventory accuracy
workforce
service
space
costs
What is a warehouse management system?
A system used to effectively manage warehouse business processes and direct
warehouse activities, including receiving, putaway, picking, shipping, and inventory
cycle counts.
What four key items are optimized by a WMS and how are the optimized?
PEOPLE- Labor planning and optimization
EQUIPMENT- MHE resource utilization and optimization
INVENTORY- Real-time visibility into inventory
SPACE- Facility layout and slotting optimization
peis.
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