Warehousing, which refers to “that part of a firm’s logistics system that stores products at
and between points of origin and point of consumption” and transportation are substitutes
for each other.
warehousing facilitates the regrouping function in a supply chain.
Accumulating involves bringing together similar stocks from different sources, allocating, by
contrast, involves breaking larger quantities into smaller quantities.
Assorting refers to building up a variety of different products for resale to particular
costumers.
Sorting out refers to “separating products into grades and qualities desired by different
target markets”.
Warehouses emphasize the storage of products, and their primary purpose is to maximize
the usage of available storage space.
Distribution centers emphasize the rapid movement of products through a facility, and thus
they attempt to maximize throughput.
Fulfillment centers represents a special type of distribution center that is focused on e-
commerce orders.
The increased emphasis on time reduction in supply chains has led to the growth of
crossdocking, which can be defines as “the process of receiving product and shipping it out
the same day or overnight without putting it into storage”.
Public warehousing serves all legitimate users and has certain responsibilities to those users.
warehousing labor safety practices in the US are monitored by the Occupational
Safety and Health Administration (OSHA).
Private warehousing is owned by the firm storing goods in the facility.
Contract warehousing refers to “a long term, mutually beneficial arrangement which
provides unique and specially tailored warehousing and logistics services exclusively to one
client, where the vendor and client share the risks associated with the operation”.
Multiclient warehousing mixes attributes of contract and public warehousing.
Velocity slotting is a popular strategy that slots the most frequently picked items in the most
accessible location; velocity slotting generally reduces an order picker’s travel distance.
With a fixed slot location, each SKU has one or more permanent slots assigned to it.
A variable slot location involves empty storage slots being assigned to incoming products
based on space availability.
Warehouse automation refers to utilizing mechanical or electronic devices to substitute for
human labor.
Dunnage: material that is used to block and brace products inside carrier equipment to
prevent the shipment from shifting in transit and becoming damaged.
Hazardous materials can negatively impact the health and/or safety of the general public.
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