Storage and Handling (Wrap-up)_NTSC Case Discussion (2)

Storage and Handling (Wrap-up)_NTSC Case Discussion (2) -...

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1 The Storage and Handling System Wrap-up CR (2004) Prentice Hall, Inc.
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2 Storage Decisions CR (2004) Prentice Hall, Inc. Sizing the Facility From inventory policy, determine the amount of inventory to be stored, that is, space needed Determine the facility’s seasonal use Balance the use of privately-owned space with rented space—a mixed strategy
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Space requirements, sq. ft. Rente d space Privatel y- operate d space Time Mixed Strategy for Warehouse Space Need for some space is seasonal CR (2004) Prentice Hall, Inc. 3
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4 Determination of a Mixed Warehouse Strategy for a 60,000 sq. ft. Privately-Operated Warehouse Private space exceeded CR (2004) Prentice Hall, Inc. PRIVATELY OPERATED RENTED Month Warehouse Throughput, lb. Space Require- ments, sq. ft. Private Allo- cation Monthly Fixed Cost Monthly Variable Cost Rented Allo- cation Monthly Storage Cost Monthly Handling Cost Monthly Cost Jan. 66,500 1,979 100% $ 22,500 a $ 3,325 b 0% $ 0 $ 0 $ 25,825 Feb. 328,000 9,762 100 22,500 16,400 0 0 0 38,900 Mar. 1,048,500 31,205 100 22,500 52,425 0 0 0 74,925 Apr. 2,141,000 63,720 94 c 22,500 100,627 d 6 4,282 e 8,992 f 136,401 May 2,820,000 83,929
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This note was uploaded on 10/16/2011 for the course OM 368 taught by Professor Morrice during the Spring '11 term at University of Texas.

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Storage and Handling (Wrap-up)_NTSC Case Discussion (2) -...

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