# Task Session 3

#### Task 1: ABC Analysis and Slotting Strategy

This task is designed to assess Competency 5: Inventory and Warehouse Layout. It requires applying the ABC analysis model to a dataset and then translating the results into a physical storage strategy.

**Scenario**

You have been provided with the following inventory data for a small set of products. Your goal is to classify these items and propose a slotting plan to improve picking efficiency.

| SKU     | Description            | Annual Sales (Units) | Cost per Unit ($) |
| ------- | ---------------------- | -------------------- | ----------------- |
| SKU-101 | Industrial Gloves      | 2,500                | $15.00            |
| SKU-102 | Safety Glasses         | 8,000                | $5.00             |
| SKU-103 | Hard Hat               | 600                  | $25.00            |
| SKU-104 | Steel-toe Boots        | 250                  | $120.00           |
| SKU-105 | Ear Plugs (Box of 200) | 10,000               | $8.00             |
| SKU-106 | High-Visibility Vest   | 7,500                | $10.00            |
| SKU-107 | Respirator Cartridge   | 1,200                | $40.00            |
| SKU-108 | Work Jeans             | 300                  | $55.00            |

***

**Assignment**

1. **Perform ABC Analysis:**
   * Calculate the Annual Consumption Value ($$ACV$$) for each SKU ($$ACV=\text{Annual Sales} \*  \text{Cost per Unit}$$).
   * Rank the SKUs from highest to lowest $$ACV$$.
   * Calculate the cumulative percentage of the total $$ACV$$ for the ranked list.
   * Classify each SKU as 'A', 'B', or 'C' based on the typical Pareto distribution (e.g., A ≈ top 80% of $$ACV$$, B ≈ next 15%, C ≈ final 5%). Present your final classified list in a table.
2. **Develop a Slotting Plan:**
   * Assume you have a single picking aisle with shelves at three vertical levels: Bottom (requires bending), Middle ("golden zone," waist-to-shoulder height), and Top (requires reaching). The aisle begins near the packing station.
   * Create a proposal that assigns each SKU to a general location (e.g., "Middle shelf, front of aisle," "Bottom shelf, back of aisle").
   * Justify your slotting decisions for the 'A' items and 'C' items, explaining how your plan reduces travel time and improves ergonomics for the pickers.

***

create your own layout with your information  to work in class, acoording to this example.

{% file src="<https://888927930-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Flyy9ScL0Kh85eJOYRHue%2Fuploads%2FjXp0PvUc1CDetWGOZHiN%2FCEDI.xlsx?alt=media&token=a8093189-d304-496b-bb5e-ac499dc6a5aa>" %}

{% file src="<https://888927930-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Flyy9ScL0Kh85eJOYRHue%2Fuploads%2FWEgCK6P9r4VF4fbymNwN%2FdatabaseTst.xlsx?alt=media&token=13f9d466-78b3-4716-9c23-ddc4dfb1a1a3>" %}

{% file src="<https://888927930-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Flyy9ScL0Kh85eJOYRHue%2Fuploads%2FAIgoftSu6o6yo1H4OuSa%2Fflujouno.xml?alt=media&token=73f44740-cd9d-4044-a7c0-59af05a6b7bd>" %}

for the Xml file please use Drawio.com to open it it is a free sogftware.

Regadrs CRC!