ABSTRACT
INTRODUCTION
When you consider the four order-fulfillment operation types, the pallet operation is the least complex to design, develop a building layout and equipment layout, and manage and control the piece and customer-order flows. The factors that make this a less complex operation include that a pallet operation receives pallets from vendors pallets and sends pallets to the customers, and that there are fewer value-added activities. Other factors include piece and customer-order flows, piece size and handling characteristics, a large pallet number with few to medium stock-keeping units (SKUs), and a large inventory with a store-and-hold requirement. Finally, the SKU storage position is the pick position.
