Question: Question 7.6. Consider four skus that are competing for space in a fast-pick area devoted to picking cartons from pallets: SKU Carton picks Carton demand

Question 7.6. Consider four skus that are competing for space in a fast-pick area devoted to picking cartons from pallets:

SKU	Carton picks	Carton demand (pallets)	Full pallet demand	min (pallets)	max (pallets)
A	100	8	20	3	40
B	100	40	1	1	Unknown
C	100	20	20	2	10
D	10	1	1	2	2

A. Compute and rank the bids of the skus for space on the ground floor of selective rack. Assume that on average it requires 1 minute per pick from the ground level, 2 minutes from a higher level, and 3 minutes per restock.

B. Compute and rank the bids of the skus for space in 2-deep pallet flow rack. Use the same average labor times.

C. Compute and rank the bids of the skus for storage in a fast-pick area that is 2-deep floor storage right at the shipping dock, with pallets stacked 2-high. Use the same average labor times.

D. Reconsider part A but assume that the overstocks are segregated by sku into specific reserved regions of the warehouse, with the space within each region shared. How would your answer change if it takes 3 minutes to restock a pallet of sku A, 2.1 minutes for sku B, 2.25 minutes for sku C, and 3.5 minutes for sku D?

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