1-) Definition of logistics (Martin Christopher) Logistics is the process of strategically managing the procurement, movement and storage

of materials, parts and finished inventory (and the related information flows) through the organisation and its marketing channels in such a way that current and future profit-ability are maximized through the cost-effective fulfilment of orders. (Martin Christopher) 2-) The Goals of Logistics ? The goals of logistics are to provide: The Right material (kind, quantity) , In the Right quality , At the Right time , to the Right place. The planned price (4Rs) 3-) Definition Of Supply Chain Management SCM represents the inter-organizational management of key business processes. Among logistics activities, also management processes of relationships in terms of product- and process development are addressed. 4-) Definition of Inventory Inventory is a crucial issue in production systems. It is closely linked to customer service, what is well investigated by researchers in this field. 5-) Describe 6 reasons for keeping inventory Economies of scale (production) Economies of scale (transport) Provides protection against uncertain demand (Service Level Reasons) Very short response times required Unexpected change in customer demand Uncertainty in available quantity and quality of supplied goods Uncertainty in costs supplier costs, Uncertainty in delivery times The presence of long delivery lead times, even if there is no uncertainty in demand or supply Limited production capacities and volume-discounts offered by suppliers Seasonal fluctuation balance of supply and demand (instead of synchronization) 6-)Describe 3 types of inventory Regular inventory is held to meet demand requirements under certainty. Safety stock is held to cover additional needs caused by uncertainty. In-transit inventory is inventory on the road and can belong either to customers or suppliers inventory. WIP (Work in Progress) is the inventory within the production process Speculative stock is not in direct connection to current demand. It is held for other reasons, for example because of expected material price rises or unavailability in the future. Especially raw materials are a prime example for that kind of stock. Seasonal inventory is held in situations of seasonal fluctuation of certain products. Thereby the utilisation of production systems is exploited over the whole year, while sales occurs during a short

seasonal limited time period Dead stock is inventory that is not needed, at least for the moment. Reasons to keep that kind of stock are customer service or an expected or hoped need for these products in future. Speculative stock is not in direct connection to current demand. It is held for other reasons, for example because of expected material price rises or unavailability in the future. Especially raw materials are a prime example for that kind of stock. 7-) Describe 8 different Warehouse Functionalities Receiving Goods in Quality Check Put Away Overstock / Stocking Picking Special Handling (f.e. Packing, Customizing, etc.) Customer Order Control Despatch Buffering and Shipping Returns Processing Cross Docking

8-) Describe the term Replenishment ? Replenishment is the process of transport products from the overstock to the pick face when the pick face gets empty. 9-) What are the main reasons for replenishment ? Increased Picking performance Decreased costs for picking equipment 10-) Which order picking systems do you know ? (de koster)

* Low level picking or manual pick * High level picking or man a board pick

*Put systems

* AS/RS or mini load * Paternotter or shuttle systems * OSR *Carusells (Vert. / Horiz.)

* A-Frame * Dispensers

* Robots

11-) Order Picking optimization? Which time elements do we know and how can we optimize them ? Rationalization of the picking process has the aim to reduce the picking time as well as an increase in picking quality

12-) Picking Tools? Why do we use picking tools and which systems do you know ? Picking tools are used to ; * Increase the pickers' performance * Increase the quality of picking (product and associated quantity) * Optimize error handling (in case of online systems) * Avoid printing of pick slips, if batch picking is used

13-) What are the main benefits of RF picking ? * Up to 30% higher productivity (Compared to an standard paper based picking system) * Avoiding incomplete orders (by confirming each pick) * Real-time data flow * Lot control / Expiry date control (Its possible to report serial number and expiry date back to the main host)

* Future growth

14-) What are the advantages of Voice picking ? * Free hands and eyes * Higher Concentration; * High User Acceptance 15-) Difference between goods to man and goods to person ? In good to man systems, the pick location is brought to the picker, usually by a mechanical device. In good to man systems, the travel time of the device is important. The search time for the picker is significantly reduced since the correct pick location is automatically presented. In well-designed systems, this could bring large increases in the pick rate of the system. One must also consider the workload balance between the picker and the machine. 16-) What are the advantages of goods to man picking systems ? * Minimizing of travel time therefore a higher pick performance (6- 10 times higher than in paper based pick systems) is common * Decreased order processing time (from order start until shipping) * Automation level gets higher (in modern pharmaceutical systems up to 90 % (talking about order lines)) * Order pick error rate against 0% * Compact storage of goods * Enlarged product spectrum is possible * Accurate management and control of total stock * Lot tracing 17-) What are the main components of a Goods to man picking system ? * Rack system storing totes with products * Conveyor system connecting racking system with pick station * Pick station ergonomic working place for to pick items * Order tote Outbound conveyor transport conveyor for order totes 18-)Describe double deep storage and double deep aisle (make a sketch) The STORAGE FUNCTION may be accomplished in a variety of ways according to the application requirements * Single Deep Storage / Single Deep Aisle

* Double Deep Storage / Double Deep Aisle * Double Deep Storage / Single Deep Aisle

19-) What do we have to consider design an AS/RS system. What ASRS stands for ? Analysis of requirements should include consideration of: * Definition of the loads to be handled; * Number of loads to be stored; * Material flow description; * Description of operation; * Architectural/Engineering considerations; * Plans for future expansion. 20-) When do we use a shuttle (OSR) system ? * For storage of a large number of articles in a minimum amount of space * Ideal for product ranges whose entire stock fits into a single container or storage bin * For product storage, retrieval and picking processes * Suitable for sensitive or fragile products * Picking performance: up to 1.000 lines/h possible 21-) Which 5 components of a shuttle system do you know ?_ * Conveyor loop * Work Station * Lift * Rack System * Shuttles * Load carriers 22-) What are the benefits of using a shuttle system ? * For storage of a large number of articles in a minimum amount of space * Ideal for product ranges whose entire stock fits into a single container or storage bin * For product storage, retrieval and picking processes * Optimum use of available space in existing warehouse areas * High performance because of separation of the vertical and horizontal movement * Discrete parallel operation at all levels * Significantly higher retrieval performance than a conventional AS/RS system * only 15 % energy consumption compared to AS/RS systems * Work stations operate in various modes 23-) Which 5 components of a Belt system do you know ? Control system Autopicker module Product channel consisting of magazine and ejector Central belt Transfer station 24-) Why do we use belt systems? * Labor Costs * Picking Quality (Error Rate) * Covering Peaks * Higher Throughput / Shorter Lead Time

25 -) Advantages of vertical storage * Very high performance (up to 2400 orders per hour) * Easy to replenish * Efficiency of replenishment is high * Good channel overview * Filling rate of channels is high

26 -) Disadvantages of vertical storage * Restricted numbers on channels / belt-length * Packages can get damaged (ejector causes scratches, nep marks) * Blister Products causes difficulties * Weight of Products is restricted (approx. 6Kg per channel) 27-)Advantages of horizontal Storage * The force of gravity is aligned with the sinus of the inclination angle in channel direction * High number of channels per meter central belt are possible (more than one level) * Smaller investment per product (channels tighter packed) * Heavier products are possible (gravity force) * It also possible to handle products with blister packs 28 -) Disadvantages of Horizontal storage * The reserve in a channel cannot be seen easily. The replenisher has to look into a module to find out whether replenishment stock is required. * Nevertheless it is difficult to estimate quantities, since the length of products cannot be seen directly. * Replenishment has to be done piece by piece. * Lower throughput compared to automates with vertical storage 29-) Which basic design criteria for a warehouse do you know ? * Lines per day * Items (Copies) per day * sold volume per day [liters] * Items/Line * Working time/day (shift model) * # products * throughput (System) * Transport units (Lengh, Width, Height) * Expected Stock range * Goods in volume per day * Shipping requirements * Returns requirements * Special handling of products * Etc. 30-) Explain the difference between single piece and multipack Sngle Piece : Smallest package of an item e.g. 1 single piece Multi Pack : Physically joint package e.g. 1 multi pack =

31-) Which information do we need in product data ? Product code Product description Product length Product width Product height Product weight Product group categories if applicable Current warehouse location (pallet, shelving, automat, manual station, ...) only for existing warehouses Identification of products that have to be handled in different ways (e.g. bottles,fridge products, sensitive products) 32-) What additional information we need to know to design a warehouse ? Layout Restrictions Storage Devices Internal Goods Movement Special Warehouse Area Special Order Treatment Dispatch Area Procedures New System Requirements Requirements forced by Law 33-) Draw a typical ABC curve (pareto ) showing the 80/20 Rule

34-) Use the 80/20 rule when we have to consider 60.000 orderlines and 10.000 articles. many fast movers do we have ?

How

35-) Which informations do we need to analyse an A frame (Central Belt System), give 4 examples. * Max. dimensions (in order to fit in the channel) * Max. diagonal (in order fit trough the dump station) * Max. Weight of single product * Max. Weight of product-pillar * Min Turnover (3OL/day in average) * Restriction on Pieces / Order Line (max. 5 pieces/OL in average) * No Blister * No instable products (or product packages) * Cubic products 36-)

37-)What are the 5 levels and activities of side planning ?

38-)Make a sketch of typical software architecture in a warehouse

39-) Describe 5 modules of a WMS system Receiving Replenishment Returns Management Stock Management Putaway Order Preparation Order Processing Dispatch/Shipping Cycle Count Manufacturing Statistics and Tracking

40-) Definitionof availability according VDI

The availability of an element (single component) or of part of a system within thelogistics system is the probability of finding the unit in question in a properly functioning condition at any random point in time during operation. Availability here exclusively refers to the technical components of the logistics system including the related control systems.

availability according to VDI 3581.and 3649 respectively. Te Active time (Total running time) which is the sum of both Readiness time = System switched on function not used and Operating time System switched on and in use

Ta Downtime (Total down time); Downtime is defined as the time which begins with the need for specific elimination of a fault in the logistics system. The period between the actual occurrence of a fault or the realization that a fault has occurred is not considered downtime as this time depends on the attentiveness of staff.