Tuesday, October 7, 2014

Slotting Logic for New Products in Vertical Carousels

In cities like Singapore where land is expensive, automation is the way to derive more throughput. Retailers are using more putaway and picking machines like vertical carousels to maximize vertical space use. For some fast fashion products though, the popularity of products vary greatly throughout the week, by launches, and by seasons.

To minimize putaway and subsequent picking effort for new products meant to replenish products sold, a logic has to be in place to relate that new products are to be placed at the vertical carousel, and analysis done to locate this product with related products that are picked/sold together, that are at the same shelf. Not too different from market basket analysis done for up-selling, cross-selling and bundling analysis.

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