Distribution Planner Interview Questions and Answers

Safety stock is the extra inventory kept to prevent stockouts due to unexpected demand or supply chain disruptions.

• Safety stock is a buffer stock that acts as a cushion against demand variability and supply chain uncertainties.

• It is determined by considering factors such as lead time, demand variability, and service level.

• The formula for safety stock is: (Maximum daily usage x Maximum lead time in days) - (Average daily usage x Average lead time in days)

• For example, if a comp...read more

There are four types of warehouse layouts: process-based, product-based, fixed-position, and cross-docking.

• Process-based layout organizes the warehouse based on the flow of materials and activities.

• Product-based layout organizes the warehouse based on the type of product being stored.

• Fixed-position layout is used for large and heavy products that cannot be moved easily.

• Cross-docking layout is used for fast-moving products that are immediately shipped out upon arrival.