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Item Relocation
Item relocation refers to the process of picking an item in the warehouse and then placing the
item in a different location within the warehouse. The need for this solely depends on how space
is allocated by the WMS. If an item is too large to fit in the available places known by the
WMS, then items must be moved or relocated to make room for the new item. Hence, item
relocation should be considered in the economic analysis, assuming that the depot has a WMS in
place, because this process has non-value added but necessary cost associated with it. If that cost
can be reduced through use of AITs then it should be considered in the economic analysis.
The first groups of information located at the top of the page are laborers and their associated
hourly pay rates as well as the benefits and disadvantages of AITs and the associated percent
differences. Both bits of information are linked to the corresponding data on one of the previous
worksheets. Hence, changes in the first worksheet for this data, Returns, will result in a change
on this worksheet for the same data as well. The next information provided is related to item
relocation using the current paper-based process. Similar to the previous worksheets, the tasks
are listed along the left under the Task column. The corresponding laborers and laborers’ pay
rates are listed under the Laborer and Pay Rate columns respectively. The task times are listed
next and the same calculations are made as before. Once again Savings are denoted by a positive
number whereas additional costs are negative.
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