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Physical Distribution (1. Physical Distribution Overview (objective (add…

- - - - transportation: (1st largest cost) goods movement via road, air, water, rail, etc.
      - managing distribution inventory: (2nd largest cost)
      - managing distribution centers (warehouses): inventory storage location
      - inventory control
      - materials handling: (1st largest part of warehousing cost) good movement from storage locations and vehicles within and around a DC
      - order administration
      - protective packaging
      - reverse logistics
      - postponement
- - - - net requirement= gross requirement - scheduled receipts - prior projected available
        net requirements (with safety stock) = gross requirements - scheduled receipts - (prior projected available - safety stock)
- - - - local delivery: from a shipper to a local terminal
      - line haul: long distance btw two terminals
      - milk run: a regular route for pickup of mixed loads from several suppliers
    - - line-haul costs: mainly depends on the distance and cost per mile (rather than weight).
      - pickup and delivery costs: mainly depends on pickup weight and number of pickups (rather than distance).
      - terminal-handling charges: mainly depends on the number of times materials are handled.
      - billing and collecting costs: (similar to ordering costs).
      - backhauling: s transportation vehicle returns from original destination point to the point of origin.
        detention: carrier charges and fees applied when truck trailers are retained beyond a specified loading or unloading time.
        demurrage: carrier charges and fees applied when rail rieght cars and ships are retained beyond a specified loading or unloading time.
  - - - common carrier
      - contract carrier
- - - - discrete order picking: picking orders in which the items on one order are picked before the next order is picked.
      - batch picking: picking orders in which order requirements are aggregated by product across orders to reduce movement to and from product locations.
      - wave picking: selecting and sequencing picking lists or items to minimize the waiting time of the delivered material.