chapter 11 answers to study questions

chapter 11 answers to study questions - Fulfillment...

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Distribution—Managing Fulfillment Operations Instructor’s Manual Chapter 11 CHAPTER 11 DISTRIBUTION—MANAGING FULFILLMENT OPERATIONS LEARNING OBJECTIVES After reading this chapter, you should be able to do the following: • Discuss the strategic value-adding role distribution plays in the supply chain. • Recognize the tradeoffs between distribution and other supply chain functions. • Understand the analytical framework for distribution planning decisions. • Evaluate fulfillment strategies and distribution methods. • Describe the primary fulfillment processes and support functions in distribution center (DC) operations. • Use productivity and quality metrics to analyze fulfillment performance. • Describe how information technology supports distribution operations. • Discuss materials-handling objectives, principles, and equipment uses. CHAPTER OVERVIEW Introduction Distribution in the twenty-first century focuses on the continuous flows of product to fulfill customer requirements at the lowest possible cost and is no longer focused on long term storage of inventory in static warehouses. Distribution operations provide a variety of capabilities for the supply chain. While speed is of the essence, running efficient distribution facilities and networks is also critical. With U.S. warehousing and distribution-related costs of $101 billion in 2006, there is a great need to focus on fulfillment costs in the supply chain. The Role of Distribution Operations in SCM As production and consumption are not perfectly synchronized, transportation of individual units is too costly. To overcome such issues, distribution operations—distribution centers, warehouses, cross-docks, and retail stores—are established within the supply chain. These inventory 11-1 IM Supply Chain Management: A Logistics Perspective
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Distribution—Managing Fulfillment Operations Instructor’s Manual Chapter 11 handling, storage, and processing facilities help supply chains create time and place utility. The role of these facilities includes the following: 1. Balancing supply and demand. 2. Protecting against uncertainty. 3. Allowing quantity purchase discounts. 4. Supporting production requirements. 5. Promoting transportation economies Distribution Facility Functionality Distribution facilities can provide four primary functions: Accumulation involves the receipt of goods from a variety of sources Sortation focuses on assembling like products together for storage in the distribution facility or for transfer to customers Allocation function focuses on matching available inventory to customer orders for a SKU. Assortment involves the assembly of customer orders for multiple SKUs held in the distribution facility. Distribution Tradeoffs
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chapter 11 answers to study questions - Fulfillment...

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