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Warehouse Management Fundamentals
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Wave Picking
A warehouse process where orders are grouped into small batches or waves and picked at the most efficient time.
RFID (Radio-frequency Identification)
Use of radio waves to capture information stored on a tag attached to an object, part of automated identification and data capture (AIDC).
Reverse Logistics
A process by which companies collect and handle returned, damaged, or outdated products and recycle, repair, or dispose of them.
Zone Picking
An order picking method where a warehouse is divided into several pick zones, and order pickers are assigned to only one zone.
Yard Management
The process of overseeing the movement of trucks and trailers in the yard of a warehouse or distribution center.
Safety Stock
A quantity of inventory kept in storage to protect against stockouts caused by variability in demand or supply.
Throughput
The rate at which goods are received, processed, and shipped out of a warehouse.
Putaway
The process of moving goods from the receiving dock and placing them into their most appropriate storage space.
WMS (Warehouse Management System)
Software designed to support and optimize warehouse functionality and distribution center management.
FIFO (First In, First Out)
An inventory management method where the first items placed in inventory are the first to be used or sold.
Lean Warehousing
Warehouse management principles that focus on reducing waste, improving flow, and increasing efficiency.
Dock Leveler
A height-adjusting device used to ensure a smooth transition between a warehouse dock and the trailer during loading or unloading.
Pick and Pack
A type of order fulfillment process where items are picked from inventory and then directly packed into shipping boxes.
Six Sigma
A set of techniques and tools for process improvement aimed at reducing errors and improving quality in manufacturing and business processes.
Just-in-Time (JIT)
An inventory strategy to increase efficiency and reduce waste by receiving goods only as needed for the production process, which reduces inventory costs.
ABC Analysis
An inventory categorization method where items are categorized into three categories (A, B, and C) based on their importance.
Continuous Improvement
A method of constantly improving warehouse operations through incremental changes or major innovations, aiming for long-term sustainability.
Cross-Training
Training employees to perform multiple jobs within the warehouse so they can switch roles when necessary.
Carton Clamping
A forklift attachment that allows the handling of goods without pallets by clamping the load.
SKU (Stock Keeping Unit)
A unique code that identifies each distinct product and service that can be purchased.
Receiving
The process of accepting and storing incoming goods to a warehouse before they are placed into storage.
Economic Order Quantity (EOQ)
A formula used to determine the optimal order quantity that minimizes total inventory holding costs and ordering costs.
Slotting
The activity of determining the most appropriate storage location for each item in a warehouse.
Cycle Counting
An inventory auditing procedure where a small subset of inventory is counted on any given day.
LIFO (Last In, First Out)
A method used in managing inventory and financial matters which the last items placed in inventory are the first to be used or sold.
Pallet Racking
A storage system designed to store materials on pallets allowing efficient use of vertical space.
Bulk Storage
The process of storing products that are not palletized in larger quantities, commonly in areas without racks.
Value-Added Services
Additional services provided to customers such as product customization, labeling, and packaging which enhance the value of the product.
Cross-docking
A practice in logistics of unloading materials from an incoming carrier and loading these directly onto outbound carriers with little or no storage in between.
Kanban
A visual scheduling system that tells you what to produce, when to produce it, and how much to produce.
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