A pallet-in, cartons-out DC stores the pallets on floors. It plan to add a fast
ID: 375697 • Letter: A
Question
A pallet-in, cartons-out DC stores the pallets on floors. It plan to add a fast pick area. The data associated with the skus and orders are given in the table.
Please rank then in their claim to fast pick area.
If 2,000 ft3 of space is allocated to these 4 skus, and you adopt equal replenishment strategy, how much space should be allocated for each sku.
Repeat if you
sku
Orders per week
Cases/ per order
Ft3/case
1
129
1.2
3
2
1943
1.8
2
3
148
1
1
4
1347
1.5
1
sku
Orders per week
Cases/ per order
Ft3/case
1
129
1.2
3
2
1943
1.8
2
3
148
1
1
4
1347
1.5
1
Explanation / Answer
Total weekly Ft3 involved for each type of SKU = Orders/ week x Cases / order x FT3/ case
Hence,
Total Ft3 involved for SKU type 1 = 129 x 1.2 x 3 = 464.4
Total ft3 involved for SKU type 2 = 1943 x 1.8 x 2 = 6994.8
Total FT3 involved for SKU type 3 = 148 x 1 x 1 = 148
Total Ft3 involved for SKU type 4 = 1347 x 1.5 x 1 = 2020.5
Therefore, Gross FT3 involved for all 4 types of SKU = 464.4 + 5994.8 + 148 + 2020.5 = 9627.7 FT3
Space should be allocated in proportion of total FT3 involved for each category to the Gross Ft3 involved in 4 categories
Therefore ,
Space to be allocated for SKU type 1 = 2000 x 464.4/ 9627.7 Ft3 = 96.47 FT3
Space to be allocated for SKU type 2 = 2000 x 6994.8/ 9627.7 = 1453.05 FT3
Space to be allocated for SKU type 3 = 2000 x 148 / 9627.7 = 30.74 FT3
Space to be allocated for SKU type 4 = 2000 x 2020.5/ 9627.7 = 419.72 FT3
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