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Warehouse-↓ lead time, ↑customer service, EoQ, consolidation for FTL (mnm+n shipments), pricing & labelling<both land & labour

more expensive at retail outlet> Popularity<no of times/picks requested>, Flow<physical volume of SKU moved/month> Pallet Tier/LayerCarton/CaseInner packPiece/Each . k = no of locations ⁄ Little’s Law, <queue length>, =average arrival rate<pallets/time>, =average waiting time<time>. Smaller the handling unit, greater the handling costs. Inbound(receiving 10% put-away15%) Storage Outbound (picking 55% check,pack,ship, 20% of total operating costs) Double handling-additional costs<put down & take up later> Pick-lines – instructions to orders picker based on measure unit. Pick-list-organisation of pick-lines by areas. Pick-face-front of storage measured in sku densityhigher =less travel/pick<also by storing popular items together & batch orders> Efficient packing strategies-possible if all orders known b4 picking. Serial pick <one worker/time>, Parallel<multiple worker/time *customer may insist shipment integrity to ↓ shipping/handling costs> Average work/order=average no of pick-lines/order x average person-hours/pick For supporting retail stores, may form assembly lines segregated into zones<efforts required to balance the assembly line>. Order accuracy is a key measure of customer service. Also, returns are expensive to handle. LAYOUT- unit-load<pallet> area-To have many pallets position/unit area, use vertical space & deep lanes <consider weight/fragile/safety>. A k-deep lane is usually dedicated to a single sku to avoid double handling. 2-deep lanes more efficient when aisle<4 pallet position. Total waste due to honeycombing = ( )<order cycle>, =order quantity in pallets, =constant annual demand in pallets. Most space efficient lane depth= √ accessibility costs/lane For pallet flow rack, min=√ ∑ where is the stackable height, Min avg floor space =√ ∑ FLOOR storage

average floor position/sku <assumption: each sku move at constant rate> Dead heading for forklifts<travelling with empty fork> reduce by having dual cycles with stow &

retrieval. Opposite receiving/shipping ends makes elimination of dead heading more difficult. Labour costs of location i (unit load storage)= ∑ where =distance determined by layout, =frequencies of visit Location of shipping/receivingdifferent side<flow-through> good for many skus, less interference , same side(U-flow)good for few skus amounting to bulk of activities, provides dock flexibility <where are the most convenient locations?> Aisle should be oriented parallel to the material flow to reduce travel between storage & shipping/receiving. Cross-aisle – more floor space required but supports storage between storage locations. Each pallet need to cross once (opp dir), Far pallets

need to cross twice (same dir). Angled-aisle – direct travel to/from central dispatch point. LAYOUT- carton.pick from pallet area-Convenient region<forward area/fast pick area> All locations in forward areas are reserved while bulk areas are random to facilitate rapid picking. Pick full pallet quantities via reserve. Preferable to defer restock till end of pick wave. To have > one position in forward to satisfy customers & to avoid congestions. Net benefit= if , if . = picks less than pallet loads, = no pf pallets for , = no of pallets ⁄ moved by full pallets  for forward are, average picks per pallet . “Bang for buck”, , Bidding for forward , Bid 1 , Bid 2 Disadvantage for having no forward area – Broken pallets at the bulk storage leads to inventory loss.

More diverse the rate of flow of SKUs, more impt to allocate space optimally. EQT/EQS-induces uniformity to simplify warehouse manage. EQT-good for batch restock<degrades over time with new SKUs>. EQS – good for slotting/space fitting. Optimal – avoid extremes. for EQT/S to get k. For greatest labour efficiency, for family uneconomical pick

safety stocks, put max volume in forward if < Limitations/Inaccuracy of fluid model , sub additivity of space (nested SKUs), granularity of space (large SKUs) …… changing restock costs by a factor = increase pick area by factor.