Chapter 9

Fees manufacturers pay to get shelf space for their products.

The physical surroundings in which a service takes place and how they affect customers and employees.

Used in warehousing to locate stock wherever there is an open location.

Pace of production to meet customer demands.

Obtaining output at each workstation on a production line in order to minimize delay.

The maximum time that a product is allowed at each workstation.

Problem solving using procedures and rules rather than mathematical optimization.

A permanent or semipermanent product-oriented arrangement of machines and personnel.

A facility designed to produce similar products or components.

Avoiding the placement of materials or supplies in storage by processing them as they are received for shipment.

Using warehousing to add value to a product through component modification, repair, labeling, and packaging.

Groups or batches of parts processed together.

An arrangement of machines and personnel that focuses on making a single product or family of related products.

A machine-paced, product-oriented facility for building components.

An approach that puts fabricated parts together at a series of workstations; a repetitive process.

Types of Fees

Slotting fees: paid by manufacturers to get shelf space for their products

Physical Surroundings

Servicescape: the physical surroundings in which a service takes place, affecting customers and employees

Inventory Management

Open location system: used in warehousing to locate stock wherever there is an open location

Production and Layout

Pace of production: meeting customer demands through efficient production
Production smoothing: obtaining output at each workstation to minimize delay
Cycle time: the maximum time a product is allowed at each workstation
Heuristics: problem-solving using procedures and rules rather than mathematical optimization

Facility Types

Fixed-position layout: a permanent or semipermanent product-oriented arrangement of machines and personnel
Product-oriented layout: a facility designed to produce similar products or components
Cross-docking: avoiding the placement of materials or supplies in storage by processing them as they are received for shipment
Postponement: using warehousing to add value to a product through component modification, repair, labeling, and packaging

Production Process

Batch processing: groups or batches of parts processed together
Product-focused layout: an arrangement of machines and personnel focusing on making a single product or family of related products
Assembly line: a machine-paced, product-oriented facility for building components
Mass production: an approach that puts fabricated parts together at a series of workstations; a repetitive process

Do you know the term for fees that manufacturers pay to secure prime shelf space in retail stores? Test your knowledge of retail industry jargon with this quiz on "Slotting Fees." Learn about the impact of slotting fees on consumers and businesses alike, and discover how these fees contribute to the complex world of retail merchandising.