Once picked the items may be labeled and put on a

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Once picked, the items may be labeled and put on a conveyor system for transfer to the shipping area. Shipment: Under this stage, the order fulfillment personnel transfer the order to the shipment area and prepare it or delivery. Customer delivery: Finally, the complete customer order is staged in a predesigned area for loading onto the appropriate outbound delivery vehicle.
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9. What are the key support functions in a DC? Inventory Control - the fact or process of ensuring that appropriate amounts of stock are maintained by a business, so as to be able to meet customer demand without delay while keeping the costs associated with holding stock to a minimum. Safety, Maintenance, and Sanitation Security Performance Analysis - determines the exact cause of a performance deficiency that is preventing the business unit from reaching its objectives and identifying the performance required to reach the objective. Information Technology - the study or use of systems (especially computers and telecommunications) for storing, retrieving, and sending information. 10. How would a distribution operation monitor the quality of service provided by a 3PL service provider? What types of metrics would be used to measure private distribution operations? The distribution operation generally monitors the quality of service by key performance indicators (KPI) as provided by the third party logistics provider. KPIs can be used to evaluate the current performance of internal and 3PL operations versus internal goals, historical results, and reserve requirements. Moreover, it is also used to benchmark results against those achieved by competitors and world class organizations. The following metrics can be used to measure private distribution: Customer facing measures: these KPIs target the reliability of the distribution processes to provide accurate, complete, and timely fulfillment of orders. The goal is to basically meet the requirements of all three. Order accuracy and timeliness are essential. It includes order picking, preparation, and transportation with each impacting order cycle time. Periodic order index: This metric evaluates the combined impact of order accuracy and timeliness. This measure shows four basic elements that are in place to stimulate successful completeness of customer orders. To be reflected as a perfect order, right items must be distributed to the right place, at the right time, in error-free condition, and with right certification, rating and billing. Chapter 10 1. Dependent demand is based on the parts that are used for the final product. It is calculated after deciding on the final product of the organization. Examples include subassemblies, components, and raw materials.
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Independent demand is based on the firm’s final product. This is influenced by trends, seasonal patterns, and general market conditions. Examples are heavy vehicles.
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