Question: Consider a fast-pick area where cases are picked from pallets (and all full-pallet picks are from reserve storage so they are not considered). Storing an

Consider a fast-pick area where cases are picked

Consider a fast-pick area where cases are picked from pallets (and all full-pallet picks are from reserve storage so they are not considered). Storing an SKU in the fast-pick area takes 2 minutes and this results in a savings of 2 minutes over picking from reserve. Each restock of the fast-pick area requires about 3 minutes. Because of volatility in purchasing, management is unable to specify a reasonable upper bound on how many pallets of each sku may be expected in the warehouse. The table below indicates the average number of case picks per week, the number of cases on a pallet, and the replenishment quantity that is the number of pallets that are delivered during a replenishment. Sku A B Case Picks 600 1000 200 Cases./Pallet 30 10 100 Replenishment Quantity (pallets) 2 4 1 1. Which of the skus would you recommend be stored in the forward area? Why? (Please answer as quantitatively as possible.) 2. If forward area is replenished once per day and it is single-high, single-deep, how many locations could each sku usefully occupy? Assume a week is five days

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