Pallet Storage and Picking Optimization Lecture Transcript

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rack products where I have two or more pallets on hand, usually two to five pallets on hand because suppose I've got a product, it only has one pallet on hand. Let's call it product D. There's only one pallet on hand. Can I use that location right there for anything useful? Not really, unless there's another D, which there's not. The other disadvantage with double deep rack over single deep rack is what equipment. That little gizmo right there is called a scissor rate, which costs a few thousand. Worse than that is the productivity of getting to this slot versus this slot. (24:48): It's another trade off of accessibility and storage density. What costs are impacted here? Labor space equipment. That's why you got to include all three of those When you do the optimization, we're just walking through the static rack options. We have floor storage, stacking frames, single deep rack, double deep rack and now drive in or drive through rack. The basic idea goes like this, here we are 1, 2, 3, 4, 5 deep against the aisle. So what's the advantage? What portion of the floor space is devoted to aisles? Very little 20% maybe so the use of the floor space and the use of the cube of the building is very good as long as you've got a lot of the same SKU and you don't need it anytime soon. This could be a great way to store the product, but I don't know a lot of folks who are in that situation. You are. Bulk cheese would be perfect for this. There you go. (25:58): Bulk chickens would be another one that would be great for this and you mentioned another key in there, what do cheese and those chickens have in common? Refrigeration which makes the space even more expensive. So what costs are impacted here? Let me get to the labor part just before we answer that question. How long would it take you to retrieve this pallet Right here on the front pretty quick. How long would it take you to retrieve that pallet? You start driving down that little lane. It's like trying to drive down peach Street Street in a Hummer. You got to be very careful in there so the productivity is not very good. Let's go through it again. What costs are impacted? Labor space equipment, same thing. Run the numbers. Flow rack. That's the beginning of our dynamic rack discussion, which is gravity, flow rack drive in rack. (27:02): You put it in from the front, you withdraw it from the front pallet flow rack, you put it in from the back and you pick it from the front. Here's an example, we put it in at the back and we pick it from the front. What is the advantage of pallet flow? Rack over drive in first in first out is one. Since you pick from one side and replenish from the other, you don't have so much congestion at the front of the system, which for high turnover items, that's a big deal. What else? It should be more productive, right? Because now we have either conveyor in here or sometimes it's done with little air pockets to slide the product down to the front. The labor's not doing that. The rack is doing that. What's the disadvantage?

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