Consider four skus that are competing for space in a fast-pick area devoted to p

Question

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

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?

Carton Carton demand Full pallet Mar (pallets demand (pallets) (pallets) Min Sku picks 100 100 100 10 20 40 20 40 1 Unknown 10 C 20

Explanation / Answer

A.

Sku   bid slots cumulative value cumulative

A 25.3 3 3 76 76

C 20 2 5 40 116

C 10 8 13 80 196

D 5.5 2 15 11 207

A 1.19 37 52 44 251

B - 20 1 53 - 20 231

B.

Suggestion : Instead of calculating based on pallets it is required to allocate slots. As a result, for example, Sku A must consume a maximum of 2 slots and B a minimum of 1 slot.

Sku bid slots cumulative value cumulative

C 40 1 1 40 40

A 38 2 3 76 116

C 20 4 7 80 196

D 11 1 8 11 207

A 2.44 18 26 44 251

B - 20 1 27 - 20 231

C.

Suggestion :similar to B, this time a slot includes 4 pallets.

Sku bid positions cumulative value cumulative

A 76 1 1 76 76

C 40 3 4 120 196

D 11 1 5 11 207

A 4.89 9 14 44 251

B - 20 1 15 - 20 231

D.

Sku bid positions cumulative value cumulative

C 27.5 2 2 55 55

A 25.33 3 5 76 127

B 16 1 6 16 142

C 8.12 8 14 65 207

D 5.5 2 16 11 218

A 1.19 37 53 44 262

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