SOME CLARIFICATIONS TO HOMEWORK NUMBER 2

We have received some questions related to Homework #2, and we think that some points
deserve to be specified to make the assignment clearer:

• Calculations of the dimensions of the case: There is no clearance between a

can and the internal separators (skeleton and tier separator). Clearances are only
between the external cardboard case and the cans.

• Safety Stock Calculations: When calculating the number of openings for the
Forward area, you need to consider 10% safety stock. However, this extra 10%
should not be taken into account for the calculations of the Reserve Area. The
20% safety stock for Reserve should be calculated only with the basis of the
Demand for Reserve, not taking into account the 10% safety in Forward storage.

• Case orientation: When deciding how many cases can fit on a pallet, the cases
must lie flat on their bottoms. Cases should not be stored sideways. The cans
should always be in an upright position.

• Do not mix SKUs: It is unacceptable to have more than one SKU in a case or
more than one SKU on a pallet. Therefore, the calculations of cases and pallets
must be performed per SKU and rounded up to the next integer.

• Safety Stock: You can apply the 10% safety stock to the raw demand in cases for
each item or to the number of cases of the item. Same thing goes for pallets: The
safety stock (20%) can be applied to cases or pallets. Please specify which one
you chose.

• Total Load Volume: For the Reserve Area, this calculation can be performed
considering cases or full pallets. Please specify which one you used.

• Truck capacity: When choosing the truck, please make sure that it has enough
weight capacity to carry at least a full pallet of product. You have enough
information to calculate how much a pallet weighs.
• Horizontal Carousels: Figure 1 presents a picture of a Horizontal Carousel,
highlighting what we call a carrier. You need this to use the Rules of Thumb Guide.
Please assume that each carousel contains at most 40 carriers and each carrier
has exactly 6 positions for cases.

One
Carrier