Consider three SKUs moving through a unit-load warehouse: SKU A: Every 5 days, 40 pallets are...

 

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Consider three SKUs moving through a unit-load warehouse: SKU A: Every 5 days, 40 pallets are shipped out in the morning and 400 new pallets arrive in the afternoon. On average, there are 90 pallets on hand. SKU B: Every 4 days, 200 pallets are shipped out in the morning and 200 new pallets arrive in the afternoon. On average, there are 800 pallets on hand. SKU C: Every 10 days, 10 pallets are shipped out in the morning and '10 new pallets arrive in the afternoon. On average, there are 15 pallets on hand. Which of these SKUs should get first priority for the most convenient storage locations? Second priority? Last priority? Prove your answer with a quantitative analysis. Consider three SKUs moving through a unit-load warehouse: SKU A: Every 5 days, 40 pallets are shipped out in the morning and 400 new pallets arrive in the afternoon. On average, there are 90 pallets on hand. SKU B: Every 4 days, 200 pallets are shipped out in the morning and 200 new pallets arrive in the afternoon. On average, there are 800 pallets on hand. SKU C: Every 10 days, 10 pallets are shipped out in the morning and '10 new pallets arrive in the afternoon. On average, there are 15 pallets on hand. Which of these SKUs should get first priority for the most convenient storage locations? Second priority? Last priority? Prove your answer with a quantitative analysis.

Answer rating: 100% (QA)

To calculate the turnover rate for each SKU we use the formula Turnover rate Total pallets shipped o... View the full answer