LOGM 4225: Warehouse Management

Assignment Instructions

Follow instructions carefully. Otherwise your grade will be affected

You can discuss the questions with colleagues. But you are not allowed to share your work.
Alike assignments will earn a grade of 0 first time.
Alike assignments will lead to an F in the course second time.
Previous semester assignments will earn a grade of 0 first time.
Previous semester assignments will lead to an F in the course second time.

Sources and Plagiarism

Cite your sources (i.e., websites, books, magazines, etc.)
Answers without sources will not earn grade.
Plagiarism: To use the same words as your source.
Plagiarism leads to a 0 in the assignment. No matter if it is only a sentence.

Be organized and professional.

Consistent formatting is expected (Line spacing, margins, fonts, numbering, etc.)
Poorly presented assignments will lose up to 50% because of presentation.

Answers without proper support will not earn any grade.

Include calculations when necessary.
Refer to appendixes when explaining your answer.

Question/answer examples

How many Daejo leaders are located in the state of Texas?

Unacceptable answer: 9.
Acceptable answer: Currently there are 9 dealers in the state of Texas.
Note: Answers need to be presented in a professional and nice fashion.

One of the best sellers at a paint store is an Iron-coat paint. The annual demand is forecasted as
10,000 gallons. The carrying cost is $0.75 per gallon. The ordering cost is $150 per order. How much
paint should be ordered each time?

Unacceptable answer: 2000.

Acceptable answer: The paint store should order 2,000 gallons each time. Calculations below show how
the answer was obtained:

2C o D
Q=
√ Cc √
=
2∗150∗10 ,000
0 . 75
=2 ,000

Note: Answer is professionally presented. Calculation details are shown using Microsoft equation editor.
LOGM 4225: Warehouse Management

Homework Assignment 6

1. [25 points] Suppose there are two SKUs: A and B. Each has a storage quantity of 300 pallets.
Both SKUs are floor-stacked. SKU A pallets may be stacked 6 pallets high and SKU B pallets may
be stacked 2 pallets high. Lane width is 2 times the width of a pallet.
a. What should be the space-efficient lane depth of SKU A?
b. What should be the space-efficient lane depth of SKU B?
c. What is the ratio between the lane depths of SKU A and SKU B? Why?

2. [25 points] A unit load handling warehouse recently 10 skus to their system. The management
wants to find out a way to minimize space utilization over time.

Following table shows order details and storage information of the 10 skus. All skus are ordered
once each 5 days. To avoid double handling of pallets, a storage lane will be dedicated to each
sku. Each sku arrives in a 48” x 48” standard pallets. Each product is stackable but have different
stackable heights. The aisles in the warehouse are 10 feet wide.

SKU Demand (unit loads/day) Order cycle (days) Stack height

1 5 5 4
2 6 5 4
3 4 5 3
4 3 5 3
5 4 5 5
6 5 5 3
7 6 5 4
8 4 5 2
9 2 5 2
10 3 5 4

a. How many storage spaces are required to store above 10 skus, assuming 1-deep lanes,
no stacking, and dedicated storage?
b. What is the space-efficient lane depth for each sku?
c. What is the common lane depth that will be space-efficient for all 10 skus?
LOGM 4225: Warehouse Management

3. [10 points] Consider the demand data in Problem #2. There are 10 storage areas reserved for
those SKUs. But, which SKU should be stored at which location is yet to be determined. The
distances between the 10 storage areas and the receiving/ shipping area are given in the
following table:

Area A B C D E F G H I J
Distance from
12 15 21 13 22 20 33 18 16 15
Receiving/Shipping
Which SKU should be stored in which area to minimize the traveling distance? (Show all work)

4. [20 points] Suppose you are laying out a floor stack area that will be a two-pallet position deep.
The aisle will be 3 pallets wide. Assuming that demands are constant, which SKUs will give the
best space utilization in this area in-terms of number of columns? (Answer should follow the
format: SKUs with _____________ number of columns should give best space utilization when
aisle width is 3 pallets and lane depth is two. Show all calculations to earn credit).

5. [20 points] Consider a collection of pallets of paint of various kinds. Each SKU will be floor-
stacked 4 pallets high. Which SKUs are best stored in the area of the warehouse with lane depth
of 3 pallet positions and an aisle 3-pallets wide? (Answer should follow the format: SKUs with
between ________ and ________ pallets will provide the best space utilization. Show all work).