Consider the storage of a product with the following features:
• Weekly demand for 4,000 units which is constant.
• Delivery is in lots of 60,000 units every 15 weeks. Delivery occurs when the onhand inventory level reaches 0 and the order is received in a relatively short period of time.
(a) Determine the space utilization when the product is stored in a shared storage area with 10 locations of equal size and with an order picking strategy of picking from the location with the least amount of inventory. (b) Consider the situation when the product is stored in a dedicated storage area of 30,000 units plus 6 shared storage locations of 5,000 units each. What is the best picking strategy in this case? Get Accounting homework help today
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