Question

A company has a warehouse, it currently deals with 10 items A-J Item Quantity per Receipt 80 pallets 50 pallets Trips to Receive 40 А Average Customer Order Size 1 pallet 0.4 pallets Trips to Receiving/Shipping Ship Ration 800.5 100 60 pallets 200 1.5 pallets 70 pallets 0.7 pallets 10 pallets 0.4 pallets 1000 cartons 4 cartons 1000 cartons 200 8 cartons 2000 cartons 150 4 cartons 2000 cartons 50 40 cartons 3000 cartons 75 20 cartons 1. Fill the missing information in the table. 2. Locate the items in the warehouse that has the following layout to minimize movement in the warehouse:

Answer 1

a.

Qty/receipt units are pallets for items A to E and cartons for items F to J

Avg customer order size units are pallets for items A to E and cartons for items F to J

Now trips to ship = Qty/receipt divided by Avg customer order size

For item A, this is = 80/1 = 80

Further, receiving/shipping ration = trips to receive/trips to ship = 40/80 = 0.5 for item A

Item	Qty/ receipt	Trips to receive	Avg cust order size	Trips to ship	Receiving/Shipping ration
A	80	40	1	80	0.50
B	50	100	0.4	125	0.80
C	60	200	1.5	40	5.00
D	70	60	0.7	100	0.60
E	10	5	0.4	25	0.20
F	1000	50	4	250	0.20
G	1000	200	8	125	1.60
H	2000	150	4	500	0.30
I	2000	50	40	50	1.00
J	3000	75	20	150	0.50

The table is filled in a similar way

For example for item G, trips to ship = 1000 cartons/8 = 125

Also receiving/shipping ration = 200/125 = 1.60

b. Items in the warehouse to minimize movement in the warehouse:

Shipping Receiving

To allocate items to above layout, we should look at receiving/shipping ration that will indiciate which item to be placed where

Based on above table obtained, the revised table arranged in ascending order or the ratio is shown below:

Item	Receiving/Shipping ration
E	0.20
F	0.20
H	0.30
A	0.50
J	0.50
D	0.60
B	0.80
I	1.00
G	1.60
C	5.00

Looking at above table, lesser the ratio of receiving/shipping, closer the item to be placed to the shipping side of the layout i.e. on the left side

So E and F can be put in location 1 and 10 respectively

H can be placed in location 2

either A or J can be placed in location 9. However since J has higher absolute no of trips to ship i.e. 150 we will place J in location 9

So A can be placed in location 3

D can be placed in location 8

B can be placed in locaiton 4

I can be placed in location 7

G can be placed in location 5

and C in location 6