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30 September, 03:43

Suppose a dairy distributor, experiencing approximately constant demand for each sku, ships an average of 200 pallets per day. If there are approximately 1,000 occupied pallet positions, what is the average wait time spent in warehouse?

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  1. 30 September, 03:45
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    It will take Average of 5 days waiting time in the warehouse.

    Explanation:

    Inventory per day = 200 pallets

    Total occupies pallets = 1,000 pallets

    Use following formula to calculate average waiting time in the warehouse

    Average wait time spent in warehouse = 1,000 / 200 pallets per day

    Average wait time spent in warehouse = 5 days

    It will take Average of 5 days waiting time in the warehouse.
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