Part 1: Calculate the theoretical and the practical (using 85% rule of thumb) square footage needed to warehouse 280,000 pallets under the following conditions:

Condition 1:

• Pallet size is 48" x 48"
  • Pallets will be stored in the warehouse one deep

Pallets will be stacked 2 high

Aisle width is 10' Theoretical square feet required_________ Practical square feet required (using 85% rule of thumb) ___________

Condition 2:

• Pallet size is 48" x 40"
• Pallets will be stored in the warehouse one deep with the 48" width parallel to the aisle

Pallets will be stacked 3 high

Aisle width is 12' Theoretical square feet required_________ Practical square feet required (using 85% rule of thumb) ___________

Part 2; Calculate the total costs of storing products in a warehouse on pallets and by the carton/case

Receiving costs are: $8.00 per pallet, $2.00 per case

Storage costs are; $16 per pallet per month, $0.60 per cubic feet per month (each month is 4 weeks long and you are billed each two weeks)

50 cases fit on a pallet and each case is 1 cubic foot in volume

5,000 cases need to be shipped to the warehouse for storage

At the beginning of the month all 5,000 cases will be in the warehouse and in the middle of the month 4,000 cases will remain. Zero cases will remain at the end of the month.

What are the total costs for the palletized products (show you math)

What are the total costs for the products in cartons (not palletized) (show your math)