Exam 4

SCMT UARK

RDC

Regional distribution center

LDC

local distribution center

Transportation costs going down

warehouse costs going up

Value adding role of distribution

enhancing customer service

balancing supply chain and demand

protecting against uncertainty

allowing quantity purchase discounts

supporting production requirements

fulfilling omnichannel demand

promoting transportation economies

DFW is a…

RDC

XNA is an,,,

LDC

direct delivery

no accumulation

DC

accumulation

As the cost of lost sales decreases

the warehousing cost increases

As warehousing cost increases

inventory cost increases

What would be a challenge for labor availability(solution)

DC automation and assistive technology or stealing workers through benefits

what would be a demand variation challenge (solution)

third party logistics facility use during peak season, shared capacity with seasonal products that have alternate primary selling seasons

what would be a challenge to increasing customer requirements (solution)

flexible fulfillment processes

slotting is

deciding where each product is going to be in your warehouse, minimizing steps taken in the warehouse (all about saving time) can be sorted through popularity or based on unit/cube size

slotting can be defined as

the placement of product in a facility for the purpose of optimizing materials-handling and space efficiency

common criteria for slotting

popularity

unit size

cube area

popularity

locate high volume (popular items) near the shipping area and the low volume items (unpopular items) away from the shipping area

unit size

locate small-size items (cubic dimensions) near the shipping area and large-size items further from the shipping area

cube

locate the items with the smaller total cubic space requirements near the shipping area and those with larger space requirements farther away from the shipping area

basic DC processes

receiving, put away (forklifts putting things where they belong), replenishment (palettes), shipping (put into trailers to go to customers, crossdocking (perishables will spoil if they sit for too long) (high volume items fast selling items) (high value someone could steal)

Basic DC process consist of

put away

replenishment

order packing

shipping

crossdocking

Put-away

identify product

verify location

fill/storage pick slots

direct fill orders (crossdock)

Replenishment

palettes being shipped to brick-and-mortar stores

re-supply pick slots

move pallet quantity orders to the shipping dock

verify moves

order packing

validate SKU and quantity

fill customer orders

prep and deliver to shipping dock

shipping

schedule carriers

load vehicle (trailer/container)

secure freight

complete paperwork

crossdocking

goods flow directly from receiving to shipping, eliminating time-consuming storage and order picking

(perishables will spoil if they sit for too long) (high volumes fast selling products) (high value someone could steal it)

warehouse management system

the blackboard of warehouses

5 modes of transportation

air

water

rail

truck

pipeline

what are the roles of transportation

the physical movement of goods between origin and destination

what are some of the major roles of transportation

physical movement of goods between origin and destination points

links supply chain partners that geographically separate

creates time and place utility (value)

major economic impact on financial performance

efficient transportation increases supply chain competitiveness

influences supply chain design, strategy, development, and total cost management

_____ is 60% of USBLC costs

transportation

motor carriers

most wide used supply chains or adjacent countries (Cananda, Mexico)

can be local (>100 miles), regional (100 to 500) or long-haul (500+)

TL, LTL, Parcel

low fixed cost, high variable cost

3 carrier types of motor carriers

truckload (TL)

less than truckload (LTL)

parcel

TL

truckloadLT

LTL

less than truckload

how many railroads are there

6

railroads

primarily used for long-distance movement of low-value goods, often in large quantities

lacks direct accessibility to all parts of the supply chain, mainly the domestic mode. need a rail spur

natural monopolies

no single rail carrier services the entire country

high fixed costs, low variable cost

railroad monopolies

6 railroads account for 70% of rail mileage, 90% of employees, 94% revenue

Largest: union pacific, BNSF railway, CSX, Norfolk southern railway, Canadian national, Canadian pacific/ KCS

What is the reason there is no single rail carrier that services the entire country

interline agreements to provide coast-to-coast service

what is the most expensive mode of transportation

air

what is the fixed cost in air transportation

planes

air carriers mainly ship

high value items with low weight (such as iPhones)

air carriers

traditionally expensive, for emergencies

ship small quantities of high-value, low weight goods

e-commerce spurred demand, perception shifted

fast delivery times can reduce inventory costs

high variable costs, low fixed costs

railroads have _____ fixed costs and ____ variable costs

high, low

air carriers have ____ fixed costs and ____ variable costs

low, high

water carriers have ____ fixed costs and ____ variable costs

low, high

major facilitator in international trade

water carriers

water carriers

significant role in the development of many countries

major facilitator of international trade

international, domestic costal, inland, great lakes

high variable costs, low fixed costs

pipelines have a ____ fixed cost

high

pipelines

unique mode

US has the largest network of energy pipelines in the world

fixed equipment that product flows through in high volumes

mainly moves liquid and gases

high fixed costs

standardization of containers was created by

Malcolm McLean

what year was the first container of freight out

1956h

how many containers did the first container freighter carry

58

Importance of standardization

making all containers the same

when was the Panama canal opened

1914

when was the Panama canal given back to Panama

December 31, 1999

when was the Suez Canal opened

1869

who built the Panama Canal

the United States

who built the Suez Canal

the French and Egyptians

Who owns/previously owned the Panama Canal

the United States; given back to its origin country

Who owns/previously owned the Suez Canal

the French and Egyptians and later on the British; now operated by its own Authority

when did the Suez Canal Authority take over operations

1956

The original Panama Canal could only handle container ships with

5K TEU or less

the new Panama Canal can handle containers with

14k TEU

in 2016 _____ opened a new Canal

Panama

Only ____ ships can fit through the Panama Canal

Panamax

_____ Canal has no locks due to flat land

Suez

Suez Canal can handle containers with

18K TEUs

Strengths of truck

accessible, fast, versatile, customer service

limitations of truck

limited capacity, high costs

strengths of rail

high capacity, low costs

limitations to rail

accessibility, inconsistent service, damage rates

strengths to air

speed, freight protection, flexibility

limitations to air

accessibility, high costs, low capacity

strengths to water

high capacity, low costs, international capabilities

limitations to water

slow, accessibility

strengths to pipeline

in-transit storage, efficiency, low cost

limitations to pipeline

limited network

which mode of transportation has the easiest accessability

truckwh

which mode of transportation has the lowest accessability

pipeline

which mode has the fastest transit time

air

which mode has the slowest transit time

pipeline

intermodal

using 2 or more modes to move products

facts about intermodal

cost efficiencies

container standardization important for use across multiple modes

supply chain sustainability

the ability to achieve continuing economic prosperity while protecting the natural systems of the planet and providing a high quality of life for its people

where do emissions come from

US, Europe, and Asia/China

How many scopes are there for emissions

3

Scope one

direction emissions from sources owned or controlled by the company

what would be the scope of emissions: burring fuel in your company vehicle

Scope 1

Scope 2

indirect emissions from the generation of purchased energy

what would be the scope of emissions: electricity used in company buildings

Scope 2

scope 3

Indirect emissions that occur in the company’s value chain, including upstream and downstream emissions. This includes emissions from a company’s vendors, carriers, and suppliers

what would be the scope of emissions: You work at Target, the emissions that JB hunt creates when transporting your goods would be…

Scope 3

Purchasing/ Procurement

procuring lanes that are roundtrip instead of one way such as, prioritizing local suppliers, use recycled materials, engaging suppliers on their practice and sustainability policies, use intermodal when possible; on average, it is a 60% reduction in CO2 Vs highway

Why would a transportation company prioritize local suppliers?

less miles= less emissions

Asia Vs. North America Product Origin

Manufacturing reduces…

water usage

energy consumption (uses renewable energy when possible)

waste (recycling when possible)

reshore is feasible

warehousing/distribution

fill rate (never want something being shipped out empty; this is usually self-inflicted)

warehousing and distribution usually

increase energy-efficient buildings (LED lights)

maximize fill rate

recycle

renewable energy

electric equipment

rainwater harvesting

build up instead of out

California Air Resources Board (CARB)

clean air regulations are always more stringent than federal EPA standards, and they typically get waivers from the EPA to enforce their laws

Advanced Clean Fleet (ACF)

an act designed to replace all diesel trucks with zero-emission trucks by 2045. All large fleets had to register diesel trucks, and no diesel trucks may operate in ports and railroads after January 1, 2024.

only electric or hydrogen-powered trucks qualify as zero emission