Southern College
Kolej Selatan
南方学院
Final Examination
Semester 1/ Year 2009
COURSE
COURSE CODE
TIME
DEPARTMENT
LECTURER
: WAREHOUSE MANAGEMENT
: LOGT 3003
: 2 1/2 HOURS
: MANAGEMENT
: HO SOK CHING
Student’s ID
Batch No
:
:
Notes to candidates:
1) The question paper consists of 2 pages and 5 questions.
2) Students are required to answer Only Four Questions.
3) Return the question paper with your answer booklet.
Warehouse Management
Q1
(a) Describe the advantages and disadvantages of private warehousing?
(10 marks)
(b) Discuss on why contract warehousing is becoming a preferred alternative for many
organizations.
(15 marks)
Q2
(a) What is a warehouse management system (WMS)? Explain.
(5 marks)
(b) Discuss, how can WMS be beneficial to warehousing operations?
(10 marks)
(c) What is OSHA? What is the role of OSHA in warehousing safety?
(10 marks)
Q3 Explain the following terms:
(5 x 5 = 25 marks)
(a) Presence synergies,
(b) Industry synergies,
(c) Operating flexibility,
(d) Location flexibility,
(e) Scale economies.
1/ 2
Warehouse Management
Q4 List and discuss any 5 service benefits to be achieved through warehousing activities.
(25 marks)
Q5 Explain the following terms:
(a)
(b)
(c)
(d)
(e)
Counter-balance trucks (CBTs)
Narrow aisle trucks (NATs)
Hand pallet trucks (HPTs)
Multi-level riser picking trucks (MRPTs)
Articulated fort-lift trucks (AFTs)
___________000_________
2/2
(5 x 5 = 25 marks)
Southern College
Kolej Selatan
南方学院
Marking Scheme
Final Examination
Semester 1/ Year 2009
COURSE
COURSE CODE
TIME
DEPARTMENT
LECTURER
: WAREHOUSE MANAGEMENT
: LOGT 3003
: 2 1/2 HOURS
: MANAGEMENT
: HO SOK CHING
Warehouse Management
Q1 (a) Describe the advantages and disadvantages of private warehousing?
(10 marks)
One disadvantage to private warehousing is that they are characterized by high
fixed costs—which necessitates high and steady demand volumes. In addition, a
high fixed cost alternative becomes less attractive in times of high interest rates
because it is more costly to secure the necessary financing. Private warehousing
may also reduce an organization’s flexibility with respect to responding to changes
in the external environment.
As for advantages, private warehousing offers users a great deal of control over
their storage needs. More specifically, private warehouses can be constructed to
meet user specifications and companies can also control product placement within a
facility. In addition, private warehousing offers access to products when an
organization needs or wants them.
(b)
Discuss on why contract warehousing is becoming a preferred alternative for many
organizations.
(15 marks)
Contract warehousing simultaneously mitigates the negative aspects and
accentuates the positive aspects of public and private warehousing. For instance,
contract warehousing allows a company to focus on its core competencies, with
warehousing management provided by experts. Contract warehousing also tends to
be more cost effective than private warehousing, with potentially the same degree
of control because key specifications can be included in the relevant contract.
1/5
Warehouse Management
Q2
(a) What is a warehouse management system (WMS)? Explain.
(b) Discuss, how can WMS be beneficial to warehousing operations?
(5 marks)
(10 marks)
Warehouse management systems are software packages that control the movement
and storage of materials within an operation. Activities that can be controlled by
WMS include inventory management, product receiving, and determination of
storage locations, order selection processes, and order shipping.
Data entry errors can be dramatically reduced and the travel times for order picking
can be reduced by nearly 50%. Other benefits to WMS include reduced operating
expenses, fewer stock-outs, increased inventory accuracy, and improved service to
customers.
(c) What is OSHA? What is the role of OSHA in warehousing safety?
(10 marks)
OSHA is the Occupational Safety and Health Administration, an agency of the U.S.
federal government that has responsibilities for industrial safety practices. In recent
years, OSHA mandated that forklift drivers actually have to drive forklifts as part of
the training process and that driver performance be evaluated every three years.
OSHA inspectors make frequent visits to industrial workplaces. In cases of
non-compliance, citations can be issued and fines can be levied.
2/5
Warehouse Management
Q3 Explain the following terms:
(5 x 5 = 25 marks)
(a) Presence synergies,
(b) Industry synergies,
(c) Operating flexibility,
(d) Location flexibility,
(e) Scale economies.
•
•
•
•
•
Presence synergies refer to the marketing benefits of having inventory located
nearby in a building that is clearly affiliated with the enterprise (e.g., the building
has the firm's name on the door). It is widely thought that customers are more
comfortable when suppliers maintain inventory in nearby locations.
Industry synergies refer to the operating benefits of collocating with other firms
serving the same industry.
Operating flexibility refers to the ability to adjust internal policies and procedures
to meet product and customer needs.
Location flexibility refers to the ability to quickly adjust warehouse location and
number in accordance with seasonal or permanent demand changes.
Scale economies refer to the ability to reduce material-handling and storage
through application of advanced technologies.
3/5
Warehouse Management
Q4 List and discuss any 5 service benefits to be achieved through warehousing activities.
(25 marks)
•
Five basic service benefits are achieved through warehousing:
– Spot stock. Under spot stocking, a selected amount of a firm's product
line is placed or "spot stocked" in a warehouse to fill customer orders during
a critical marketing period. In particular, manufacturers with limited or
highly seasonal product lines are partial to this service. Utilizing warehouse
facilities for stock spotting allows inventories to be placed in a variety of
markets adjacent to key customers just prior to a maximum period of
seasonal sales.
– Assortment. An assortment warehouse stocks product combinations in
anticipation of customer orders. The assortments may represent multiple
products from different manufacturers or special assortments as specified by
customers.
– Mixing. In a typical mixing situation, truckloads of products are shipped
from manufacturing plants to warehouses. Each large shipment enjoys the
lowest possible transportation rate. Upon arrival at the mixing warehouse,
factory shipments are unloaded and the desired combination of each
product for each customer or market is selected.
– Production support. Production support warehousing provides a steady
supply of components and materials to assembly plants. Safety stocks on
items purchased from outside vendors may be justified because of long lead
times or significant variations in usage. The operation of a production
support warehouse is to supply or "feed" processed materials, components,
and subassemblies into the assembly plant in an economic and timely
manner.
– Market presence. While a market presence benefit may not be so obvious,
it is often cited by marketing managers as a major advantage of local
warehouses. The market presence factor is based on the perception or belief
that local warehouses can be more responsive to customer needs and offer
quicker delivery than more distant warehouses.
4/5
Warehouse Management
Q5 Explain the following terms:
(a) Counter-balance trucks (CBTs)
(b) Narrow aisle trucks (NATs)
(c) Hand pallet trucks (HPTs)
(d) Multi-level riser picking trucks (MRPTs)
(e) Articulated fort-lift trucks (AFTs)
•
•
•
•
•
(5 x 5 = 25 marks)
Counter-balance trucks (Fuel) (CBTs) are the most common type of fort-lift truck,
wide turning circle is compulsory so wide aisle widths is needed.
Narrow aisle trucks (NATs) operate in very narrow aisles using battery power. 2
types- Swing mast trucks (swing through 90 degrees in one direction only). Turret
trucks , 90 degrees in either direction. These types of trucks operate required a
guidance system (side aisle rails or guidance buried in the floor) in view of the tight
tolerance levels while they are operating in the racking.
Hand pallet trucks (HPTs) or pallet jacks, no lofting capacity.
Multi-level riser picking trucks (MRPTs) or man-up trucks are used in order
selection and are specially designed for manual picking at varied levels of pallet
racking. Like NAT without a swinging or turning mast.
Articulated fort-lift trucks (AFTs) or bendy trucks are a hybrid combining
CBT/NAT application, powered by battery or LPG.
________000_______
5/5