125 Buyers tend to order more than expected

demand

116 Expiration dates must be interpreted by

employees

111 There are discrepancies in

determining expiration dates on

received goods

117 Data is entered into warehouse

management system manually

122 Buyers forecast based on incorrect

historic data

UDE #5 UDE #5

121 There is a large number of mistakes related to expiration

datest

118 Increased error with manually entered data

112 There is no vendor standard in

recording expiration dates on

goods

105 There is no federal law requiring NAICS to have standardized Bar Code

Labeling system for expiration dates

106 NAICS does not have a standardized barcode for

expiration information

(C) To Page 2

1

(E) To Page 3

123 Buyers forecast based on current inventory levels

104 The Exchange is a organization governed by

federal laws

120 The Exchange has inventory shortages for

products with high demand

124 The buyers over-react to

shortages

119 Popular items are shipped immediately upon arrival

115 There are not enough

popular items to allocate to

retailers

114 The exchange cross-docks a large percentage of high

demand items received

110 The Exchange does not meet popular item

demand

113 Cross-dock is the quickest method to

replenish retail stock

108 Retailers tend to over-order when there is uncertainty

for future shipments

109 Retailers demand items faster than the

DC can deliver

102 Retailers do not receive

shipments often

107 Buyers do not purchase enough items demanded

103 Forecasting is inaccurate

*NAICS - North American Industry Classification System

101 Retailers have high

velocity of sales

209 The Exchange holds the current policy to discount excessive goods

210 Warehouse wants to move

over bought goods

UDE #7212 The warehouse

has large percentage of products discounted

211 Goods are put on promotion to

stimulate demand

UDE #6208 There is excessive

money tied up in inventory

204 There is a over stock of goods in the warehouse

206 The warehouse space is not utilized efficiently

(C) From Page 1

207 Warehouse throughput is not as high as expected

203 All purchased goods are sent to the warehouse

205 Increases in customer order quantities after goods

are on hand

(D1) To Page 4

2

202 Extreme upward shifts in demand

201 Increase in total base personnel

(D2) To Page 4

306 It takes government approval to implement a warehouse management

system

308 It is costly to implement a real-time warehouse

management system

307 The Exchange can not implement a new

WMS

309 Difficult for manufactures to

implement RFID into products

(A) To Page 4

310 The Exchange attempts to be cost

effective on ordering

312 It is most cost efficient to utilize

economies of scale

(B) To Page 4

3

(E) From Page 1

There are conflicting goals between the buying department and the Distribution Center

There are conflicting goals between the buying department and the Distribution Center

301 The Distribution Center management dictates the DC goals

303 The Distribution Center focuses on real-time visibility

of goods

302 The Distribution Center focuses on

data integrity

305 The Distribution Center wants a sufficient management IT system

311 Buyers focus on cost effectiveness for

purchasing

304 The current Buyer’s policy is to

purchase at the lowest unit cost to

accommodate demand for all

distribution centers

422 There is a lost opportunity

for sales421 Seasonal demand increases

UDE #8420 The warehouse has a large

percentage of seasonal products in inventory

UDE #1 423 Net profits are not as high

as expected

416 It is a necessary condition to have

seasonal items in stock before distribution

415 There is a long lead

time for receiving products

413 Buyers over stock

demand for perishable

goods

408 buyers must order in large

quantities

410 Seasonal items from over sea’s require long lead

time414 The Exchange holds inventory for

long periods of time

418 There is a large percentage

of spoilage

UDE #2 417 The warehouse has

a large percentage of expired goods

412 Actual demand is often less than

forecasted demandUDE #4407 The

Predicted forecast is inaccurate

(A) From Page 3

409 Seasonal items are only ordered a few times a year

UDE #3 406 There is no way for

the Exchange to monitor real-time information

402 Monitoring real-time information is critical for

accurately forecasting demand

404 The Exchange has not been

implementing the necessary IT

programs

(B) From Page 3

(D1) From Page 2

403 The possibility for errors is inherent

in forecasting

405 The Exchange does not have an updated IT system in place

401 The government has

not improved the necessary IT

program

411 The exchange under forecasts

demand

419 The exchange has shortages of perishable

goods

OR

(D2) From Page 2

4