Key Terms Office layout (p. 371) Retail layout (p. 372) Slotting fees (p. 374) Servicescape (p. 375) Warehouse layout (p. 375) Cross-docking (p. 376) Random stocking (p. 377) Customizing (p. 377) Fixed-position layout (p. 377) Process-oriented layout (p. 378) Job lots (p. 379) Work cell (p. 383) Takt time (p. 384) Focused work center (p. 386) Assembly line p. 386) Assembly-line balancing in Cycle time (p. 389) Heuristic (p. 389) Ethical Dilemma Although buried by mass customization and a proliferation of new products of numerous sizes and variations, grocery chains continue to seek to maximize payoff from their layout. Their layout includes a marketable commodity-shelf space-and they charge for it. This charge is known as a slotting fee. Recent estimates are that food manufacturers now spend some 13% of sales on trade promotions, which is paid to grocers to get them to promote and discount the manufacturer's products. A portion of these fees is for slotting, but slotting fees drive up the manufacturer's cost. They also put the small company with a new product at a disadvantage because small companies with limited resources may be squeezed out of the marketplace. Slotting fees may also mean that customers may no longer be able to find the special local brand. How ethical are slotting fees? preconditions of ou Discussion Questions 1. What are the seven layout strategies presented in this chapter? 2. What are the three factors that complicate a fixed-position layout? 3. What are the advantages and disadvantages of process layout? 4. How would an analyst obtain data and determine the number 6. What are the four assumptions (or preconditions) lishing layout for high-volume, low-variety products 7. What are the alternative forms of work cells discussed textbook? 8. What are the advantages and disadvantages of wor 9. What are the requirements for a focused on focused factory to be appropriate? dlages of work cl sed work.com in office Layo