Beta Products is planning to add another warehouse. Ten products from the entire line are to be
Question:
Beta Products is planning to add another warehouse. Ten products from the entire line are to be stored in the new warehouse. These products will be the A and B items. All C items are to be served out of the plant. Forecasts of
annual sales that are expected in the region of the new facility are 3 million cases (A, B, and C items). Historical data show that 30 percent of the items account for 70 percent of the sales. The first 20 percent of the entire line are
designated as A items, the next 30 percent as B items, and the remaining 50% as C items. Inventory turnover ratios in the new warehouse are projected to be 9 for A items and 5 for B items. Each inventory item, on the average,
requires 1.5 cubic feet of space. Product is stacked 16 feet high in the warehouse.
What effective storage space is needed in square feet excluding aisle, office, and other space requirements?
Expert Answer:
To determine the space needed for the new warehouse and the number of pallet positions required we can follow these steps 1 Identify the A and B items ... View the full answer
