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The forward pick area of your distribution center is analyzed at the end of the first quarter to determine whether some SKUs should be removed/added.
The forward pick area of your distribution center is analyzed at the end of the first quarter to determine whether some SKUs should be removed/added. Using historical and forecasted data, the following 4 items are the best candidates to be considered to use the forward pick area. SKU Picks Replenishments # of Pallet Positions (# of pallets) Needed Marvel: Infinity War, Blu-ray DVD 690 20 3 Harry Potter Illustrated Edition Set of 3 books 200 2 N 2 Portable Grill Bluetooth Speaker 250 1000 50 100 4 5 The average time to pick one case from the forward pick area is 1 minutes. The average time per pick from the bulk storage area for pallets is 3 minutes. The average time to restock a pallet to the forward pick area is 5 minutes. 1. Determine the potential labor savings for each of the SKUs in the table above. 2. Suppose the forward pick area only has 10 available pallet positions. How would you allocate the SKUs to the forward pick area
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