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Among all 100 SKUs you can assume that the size of the forward pick area will be 1,000 ft3 and that the cost per pick

Among all 100 SKUs

you can assume that the size of the forward pick area will be 1,000 ft3 and that the cost per pick from the forward area is $2.20.

(a) If you were going to include exactly 10 SKUs in the forward pick area, which would they be and why?

(b) What is the net benefit of including these 10 SKUs in the forward pick area?

(c) Assuming a forward pick area of size 1,000 ft3 , which SKUs and how many should you include in the forward pick area?

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File Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do E15 C: Value 1 Parameter 2 Size of Forward Pick Area 3 Cost per Replenishment 4 Cost per Pick from Reserve 5 Cost per Pick from Forward Pick Area 6 SKUs in Forward Area 7 1000 300 6.7 2.2 30

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