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XYZ Ltd is a retailer in the US. Their customers' demand for Thanksgiving and Christmas decora-tions usually rises in the end of the year. This irregular demand results in more required storage space for finished goods during peak seasons. Which of the following are possible solutions for dealing with required additional space? 1. Maximising aisle width 2. Keeping high buffer stock throughout the year 3. Maximising flexibility in warehouse layout 4. Installing mezzanine floor
Correct Answer: D
Possible solutions to the high irregular or seasonal demand problems are listed below: * Take advantage of the height of the warehouse - Mezzanine floor - High racking system (increase storage capacity but require high-reach material handling equip-ment) * Eliminate dead stock or inventory * Improve material flow * Improve storage location method * Consider using aisle space during demand peak * Narrow aisles between racks (require narrow handling equipment) * Carousel-type storage system * Auto-storage and retrievals system (ASRS) Reference: LO 1, AC 1.1
