Logistics Strategy and Facility Location Decisions

These flashcards cover essential vocabulary and concepts related to logistics strategy and facility location decisions.

Warehousing

Any operation that stores, repackages, stages, sorts, or centralizes goods or materials.

Consolidation warehousing

A form of warehousing that combines shipments from multiple sources into larger, economical loads.

Cross-docking

A warehousing method where large incoming shipments are received and broken down into smaller outgoing shipments.

Assortment warehouses

Warehousing that holds a wide array of goods close to the source of demand to ensure short customer lead times.

Reverse logistics system

A supply chain dedicated to the reverse flow of products for returns, repair, remanufacture, and/or recycling.

Weighted center of gravity method

A logistics decision modeling technique that aims to identify the best location for a warehouse or facility based on multiple demand points.

Logistics Information Systems

Decision support tools used to monitor logistics systems, estimate costs and travel times, and optimize planning and execution.

Postponement warehousing

A warehousing method that combines classic operations with light manufacturing and packaging to delay final assembly until necessary.

Inventory pooling

Consolidating safety stock for stores into one centralized location to provide timely service to any store as needed.

Facility location decision factors

Factors include costs of supply chain, transportation, labor, materials, service levels, access to customers, and facility costs.