A im, im, im, 1600 wit/year Example B 0,5m, ozmom 90,000 unit / year Calm im, alm Size Example 8.1. Consider two skus with flows of 16 and 1 units/year respectively, which are to share 1 unit of storage. The different allocation strategies would result in the following: 3 A.B.C =12m Totals forward D 2 flow Equal Space allocations Restocks Equal Time allocations Restocks sku A 16 1/2 32 Optimum allocations Restocks 16/17 17 4/5 20 100,000 unit/year Annual Sales sku B 4 1/2 2 1/17 17 1/5 5 and the optimal allocation results in almost 30% fewer restocks. 1 34 1 34 1 25

Example 8.1. Consider two skus with flows of 16 and I unitsyear respectively: which are to share 1 unit of storage. The different allocation strategies would result in the following: ABC12m3 forwand (1) (2) (2) and the optimal allocation results in almost 30% fewer restocks