Question

Briefly discuss the facility-level tradeoffs with a distribution center.

Distribution Centers face 3 major challenges as addressed in the material. List these challenges and discuss potential solutions.

Answer 1

Facility-level tradeoffs with a distribution center:

• Warehouse-transportation trade-off: lower transportation costs, however, increment warehousing costs
• Warehouse-inventory trade-off: higher inventory cost and higher warehousing costs
• Warehouse-service trade-off: expanded warehousing costs however lower cost of lost deals

Decentralization hinders the selection of hazard pooling, so all things considered every facility must hold extra security stock have one warehouse for low-speed things. For interior productivity focuses to be met, it is important to make honest budgetary and execution trade-offs between assets:

• Space versus gear: the bigger the facility the greater hardware required
• Gear versus individuals: the more that hardware robotizes exercises the fewer work hours required
• Individuals versus space: the bigger the facility workforce, the bigger the facility size and activity conceivable

The top 3 major challenges distribution centers faces and some potential solution related to that:

1. Inventory precision: When producers don't have full visibility to their inventory, they face the issues of either coming up short on stock at an inappropriate time or conveying an excessive amount of stock and accordingly diminishing income while expanding costs to warehouse additional materials. Of the two difficulties, the more noteworthy issue is inventory deficiency, which can prompt unfulfilled requests and miserable clients.

2. Space use/warehouse design: It's not about how much space you have; it's tied in with streamlining that space to maintain a strategic distance from pointless work. Keep quick-moving and high-selling inventory close to the front of the facility so lift truck drivers aren't continually going to the most distant spans of the warehouse.

3. Excess procedures: Barcode technology, can decrease or wipe out the issue of a pick ticket or other documentation going through various hands - e.g., a picker, a checker, a stager, a loader, and so on.