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The Newsvendor Model in SCM

Many supply chain management (SCM) approaches can be explained using the Newsvendor Model (NVM). This model, which originally comes from inventory management, evaluates both the costs of excessively high inventories and the costs of excessively low…

Function and advantages of the ant algorithm

The Ant Algorithm, also often called Ant Colony Optimization (ACO) in the literature, is an algorithm for the approximate solution of complex optimization problems. This method of combinatorial optimization, also known as metaheuristics, is based on…

The cost of unused opportunities in supply chain management

No company can afford not to have the cost side under control. The figures from financial accounting serve as the basis for this. In many cases, the figures for the companies' cost accounting are derived from this. A look into the cost accounting of…

Ship to Line / the direct provision of goods

In the case of ship to line or direct provision of inventory, the supplier/manufacturer assembles the shipment and delivers it directly to the point of consumption - without the need for the customer's warehouse or logistics. By taking over the…

Definition – The Milk Run Concept

The milk run concept is a method for optimizing inter-company procurement logistics, often used in conjunction with just-in-time production. Based on existing consumption values, it describes a logistics supply cycle in which goods or empties are…

The degree of utilisation/the capacity utilisation

The degree of capacity utilisation describes the proportion of the capacity used by resources/operating resources (plant, machinery, employees, energy) measured against the total available capacity - always in relation to the completion of a work…

Definition of Accounting / Bookkeeping

The term accounting describes the comprehensive recording, storage and analysis or evaluation of all measurable business transactions/processes in a company. For this purpose, profit and balance sheet ratios from the general accounting are set in…

Buffer line

A buffer section is used to intercept jams within the material flow, to avoid bottlenecks and idle time within different processes and to collect inventories for forwarding. It can be integrated fully automatically into the flow of goods, but can…

Information in intralogistics

Information describes the meaningful content of a message, which is of value for the recipient. The receiver can be either a human or a machine. The sent or received information does not contain irrelevant or redundant transmissions. In the…

Returns processing

Returns handling describes several processes in the return of goodsordered - mostly - online. They are processed and handled by the distribution centeraccording to the client's specifications. Looking at returns processing as a whole, the process…

Storage capacity/storage economy

Storage capacity is defined as the maximum number of loading units that a warehouse can hold. It also represents the actual capacity of a warehouse. It directly relates to the size of the storage area, the height of the warehouse (usable space), the…

Host system (ERP system)

The host system (usually an ERP system) is a central data processing system that can be accessed simultaneously by different computer systems and programs. Furthermore, in most cases the database(s) is/are also installed on the host. A host can be…

Definition of order processing in intralogistics

Order processing includes all formal processes such as order transmission, data processing and order control; measured from the time the order is placed to the receipt of the so-called shipment documents (invoice). The physical receipt of the goods…

Heijunka lean method

The Japanese lean method Heijunka pushes a production where the production flow of the parts market is continuously guaranteed despite market fluctuations. This avoids transport and idle times and distributes the time needed for materials over the…

Assortment width and assortment depth

The assortment available in a warehouse and in the retail trade is subdivided into the assortment dimensions assortment width and assortment depth. The assortment width describes the range of different merchandise, the assortment depth the variety…

Modularization of materials handling equipment – approach to a standardized system architecture

The current market development shows the following challenges: New component technologies require new measures to be taken Uncoordinated function modelling leads to fragmentation Large projects can only be managed with extreme engineering effort…

Lean Production

Lean Production describes a method with the goal to react quickly to outside influences on production systems. This is a concept that affects the efficiency increase of all company activities within a value chain. This includes, for example, the…

The distribution center

A distribution center is an interface in the form of a building complex that functions exclusively within a logistics network. This can be a warehouse, a transshipment point or both in combination. Usually it is the combination in which goods are…

Order throughput time

When an order is received in a logistics centre, it passes through various processes until it is completed. For each of these individual processes, the lead time is measured. If you add the lead times of the individual processes, you get the total…

The barcode – EAN, GTIN and GS1 standard

Barcodes have successfully established themselves over other systems in recent years. The barcode is a binary code consisting of an array of parallel bars and separation gaps. These are arranged according to a predetermined image and are interpreted…

Temperature-controlled logistics (environmental measurement)

The market for temperature-controlled logistics in particular has been growing in volume over the past few years. Refrigerated and frozen foods, as well as medication logistics, rely on the benefits of RFID technology. The core functions in such…

Overview and definition of ident carriers

In order to be able to identify an object without any doubt throughout the entire logistics chain, it can be determined by an identifier. This ident carrier is generated by an identification system. The components of an ident system consist of a…

Production management

According to business economist Werner Kern, production management is an operational service provision. "Production is any kind of internal transformation of goods into higher-value goods". In his opinion, terms such as production, costs, planning,…

Data Mart: the local warehouse database analysis

Data mart describes the use of a database that is only a department-specific part of the overall data warehouse. For this reason, it is also referred to as the departmental database. Generally, such an extract from the entire database is used to…

Overview – Serial Shipping Container Code (SSCC)

Each shipping unit, which can be a pallet or a carton, for example, is automatically assigned a "Serial Shipping Container Code" (prev. "Serial Shipping Container Code" (SSCC)). This is a globally unique and unmistakable sequence of digits that…

Defintion and advantages of consignment

The term consignment refers to a form of delivery of goods in which the supplier acts as consignor and the customer as the consignee. The consignor is the owner of the goods until either an agreed period expires or the consignee removes the goods…

FEM 9.831 Calculation basis for stacker cranes for high-bay warehouses

FEM 9.831 is a standard for the use of stacker cranes in high-bay warehouses. The standard specifies tolerances, deformations and clearances for stacker cranes in high-bay warehouses. It applies to high-bay warehouses with stacker cranes that…

Distance selling contract

A distance contract is a contract concluded between an entrepreneur and a consumer by means of distance communication. The means of distance communication include letters, catalogs, telephone calls, faxes, e-mails as well as radio and other media…

Definition of Same Day Delivery

Same Day Delivery means that inventory is delivered on the same day it was ordered. Ordered today, delivered tomorrow is already a standard with some e-commerce distributors. The next step is same day delivery. Intralogistics requirements for…

Master data

In intralogistics, master data, also known as primary data or reference data, is data that contains operationally relevant information. This includes information about products, suppliers and customers, for example. Individual data is assigned to an…

Inventory costs

Inventory costs are costs that arise from the movement of product goods in the warehouse or…

No-Line Commerce

No-line commerce represents the highest level of development in e-commerce at present. All…

Warehouse functions

Functions of the warehouse

When considering the functions of a warehouse, the purpose of the warehouse arrangement is in the…

Definition – Omni-Channel

Omni-Channel focuses on the further development of multi and cross-channel distribution paths in…

Inventory management in intralogistics, incl. stock and stock reconciliation

Inventory management stands for the complete digital recording of all stock movements in…

Definition – Cross-Channel

Cross-Channel enables a cross-distribution channel purchasing process in which customers combine…

Definition – Multi-Channel

Multi-Channel describes the possibility to offer commerce (B2B and B2C) on several distribution…

Ergonomics in the warehouse

Ergonomics in the warehouse aims at the adaptation and creation of workstations which, taking into…

Reverse logistics

While logistics represents the production route to the customer, reverse logistics, also known as…

E-Commerce: the online marketplace

E-commerce, or electronic commerce, is the term for electronic commerce on the Internet. The…

Specifications and requirement documents in intralogistics

The specification sheet generally contains the project requirements predefined and described in…

CMR: the consignment note

The term CMR comes from the French, Convention relative au Contrat de transport international de…

What can logistics accomplish?

In recent decades, the term "logistics" has developed into a general term. This is a good thing.…

Stock Keeping Unit (SKU)

The acronym SKU, Stock Keeping Unit, describes a clearly identifiable storage unit. A storage unit…

Picking times – base time

In picking, the base time is the time required for picking. It only describes organisational…

What is the logic behind supply chain management?

At the center of managementis the individual as an acting being, as homo agens. In supply chain…

Automated guided vehicles (AGVs)

From the technical committee of the VDI (Association of German Engineers), automated guided…

Cut-off time in intralogistics

In intralogistics, the cut-off time describes the time at which an order must leave the warehouse…

The Newsvendor Model in SCM

Many supply chain management (SCM) approaches can be explained using the Newsvendor Model (NVM).…

Ant algorithm

Function and advantages of the ant algorithm

The Ant Algorithm, also often called Ant Colony Optimization (ACO) in the literature, is an…

Definition – The Milk Run Concept

The milk run concept is a method for optimizing inter-company procurement logistics, often used in…

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