Question
A warehouse storage planner is trying to decide how much space a new product with a large quantity will need for storage. Since the quantities
A warehouse storage planner is trying to decide how much space a new product with a large quantity will need for storage. Since the quantities are so large, the planner has selected the warehouse's pallet rack area as the appropriate storage area. The pallet racks in the warehouse are a standard 4-ft high (plus allowance of 6-in. for pallet height). The racks are wide enough to stage two pallets of 4-ft width side-by-side on a shelf. The product's packaging dimensions are 2-ft2. The order point for the item is 20 units and the order quantity is 48 units. If the demand is 16 units a week and the replenishment lead time is 1 week, how many pallets should the planner plan to stock in the warehouse?
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