AN INTEGRATED STORAGE-SYSTEM EVALUATION MODEL

A modelling strategy is presented that links three major policy issues associated with the distribution systems serving a random process of item retrieval demand. These issues include inventory management, spac e allocation between reserve and retrieval storage areas, and storage area layout. The analytical base for system cost components related to these policies is derived and incorporated into a computational evalu ation model. A sample problem is used to demonstrate the model for ana lyzing costs associated with the design and operation of a distributio n system.