Logistics quiz 3 Warehousing CHAP 10 Accumulating involves bringing together similar stocks from different sources ex A department store buying suits from many different brands Allocating is the opposite breaking down large quantities into smaller ones a individual store carries less shit than a big department store Assorting refers to building up a variety of different items in stock ex a department store that supplies lots of variety Sorting out refers to separating products into grades and qualities based on their target market Warehouses hold the shit distribution centers are all about the movement of products through the center aka through put Cross docking is the process of receiving product and shipping it out so fast it never enters storage How long the shit is in the place determines if it is a distribution center or cross dock less than 24 hours Public warehousing you rent the space and you only worry about your staff not the actual space nice bc less risk but you have less control because you don t own OSHA monitors health and safety of warehouse workers Private warehousing is you own the place so high fixed costs but more control Contract warehousing is the middle option vendor and client share the risks it is in the middle pricing wise One client at a time long term commitment It allows the company to have a 3rd party focus on their warehousing needs but still offers a good amount of control Muliclient warehousing is like public but less clients so more customization mix of contract and public Tradeoffs need a happy medium of space not too little that it s cramped but not so much it takes a long time to walk through its also better to build up than out Nonstorage activities places that you cant store shit but you need these places ie Offices employee lunch bathrooms area for trash Warehouse safety most common injury is overexertion there are 3 catergories of safety employee property and motor vehicles Transportation CHAP 12 There are 5 types of transportation air motor carrier truck pipeline rail and water Main attributes with the various modes cost speed reliability capability capacity and flexibility Airfreight by far the fastest but it is also very expensive Line haul is one airport to another It also requires the consignees receivers of freight to be close to an airport And there is accessorial service aka additional transportation Usually high value perishable items are shipped air freight bc they need to be somewhere fast Motor carriers Trucks trucks packed with Less that truck load LTL plan to stop at many terminals and carry shit for multiple companies vs trucks who go full load 10 000 lbs or more Pipelines the only one without vehicles no need for vehicle operators also since there are no vehicles it is only one way transportation But that being said it is the MOST reliable form of transportation Shit capacity because the stuff has to be liquid liquefiable or gas Slurry systems allow bulk shit to become liquefiable Railroads has a market concentration like no other 4 companies dominate This creates limited service and pricing options They are not the best or worse in any of the six attributes Water when there is a drought it is bad bc water levels drop in rivers also floods are bad too and with ice some northern rivers shut down This is very dependent on weather There is also a LOCK system to raise and lower barges that can break Piggy back transportation is a type of Intermodal transportation would be putting a semi on a train then once it gets off the train it can drive where it needs to go Unit TEU is 20 feet International Logistics CHAP 14