Problem 2: Warehouse Sizing (10 points) Two products are to be stored in a wareh
ID: 452872 • Letter: P
Question
Problem 2: Warehouse Sizing (10 points)
Two products are to be stored in a warehouse. Product A is 5” wide x 16” long x 8” high and is stored on 40” x 48” pallets. Product A can be stacked 7 layers high on each pallet and pallets are double-stacked in the storage area. Product B is 8” wide x 8” long x 5” high and is stored individually on shelves that are 10 shelves high. The storage area has 50% unused space that is for spaces between pallets, bins, aisle allowances, etc. The table below provides additional information for these 2 products.
Product
Annual Demand (units)
Annual Inventory Turnover
Utilized %
A
950,000
6
80
B
925,000
12
90
What is the total storage square footage required for Product A? (5 points)
What is the total storage square footage required for Product B?(5 points)
Product
Annual Demand (units)
Annual Inventory Turnover
Utilized %
A
950,000
6
80
B
925,000
12
90
Explanation / Answer
Product Formula A B Annual Demand (units) D 950,000 925,000 Annual Inventory Turnover T 6 12 Utilized % U 80% 90% Maximum Inventory Level Imax = D/T*U 126667 69375 Product Size l * w * h 16" x 5" x 8" 8" x 8" x 5" Pallet Size L * W 40" x 48" 40" x 48" Pallet Area square footage PA = L*W/144 13.3 13.3 Products per length of pallet = Pallet length / product length NL = L/l 3 6 Products per width of pallet = pallet width / product width NW =W/w 8 5 Total Products per pallet 1 level stacked NP = NL*NW 24 30 Product Stacking ps 7 1 Pallet Stacking PS 2 10 Number of products per pallet size of floor P = NP*ps*PS 336 300 Net Floor Area required in terms of pallet size FP = Imax / P 377 231 Net Area required square footage = FP*PA 5026 3083 Gross Total Area = Net Area / (1-unused space %) square footage 5026 3083
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