ABC-XYZ Velocity Classification & Zoning AX / AY Class (Top 15% SKUs = 70% of picks): High-velocity, predictable apparel basics. Slot in Zone A (front-most bays within 15 meters of pack stations). BX / BY Class (Next 30% SKUs = 20% of picks): Seasonal footwear and mid-tier accessories. Slot in Zone B (mid-aisle shelving bays). CZ Class (Bottom 55% SKUs = 10% of picks): Slow-moving or erratic sizes/colors. Consolidate into Zone C (upper mezzanine levels and rear high-density bins). 2. Rack Configuration & Cube Utilization Plan Carton Flow Racks: Dedicate 4-tier gravity flow racks for AX items to holds 3 days of forward demand, utilizing tilted rollers to auto-present open cases. Static Shelving: Configure 400mm vertical shelf clearances with corrugated bin dividers for CZ items to eliminate dead air space above small polybags. Selective Pallet Racks: Use top beams (Levels 3–5) directly above carton flow lanes as dedicated bulk reserve overstock to minimize vertical replenishment travel. 3. Pick-Path & Ergonomic Slotting Rules Golden Zone Placement: Slot heaviest footwear boxes and top 5% velocity SKUs strictly between 750mm and 1,300mm (waist-to-chest height) to eliminate operator bending and reaching. Congestion Mitigation: Alternate "hot" AX SKUs across multiple parallel aisles rather than clustering them in a single aisle to prevent multi-cart bottlenecks. SKU Separation: Separate identical styles in different sizes (e.g., Black Tee Size M vs. Size L) by at least 4 bin locations to prevent visual mispicks. 4. Replenishment & Min/Max Trigger Logic Forward-Pick Sizing: Size forward carton-flow locations to hold a 5-day supply maximum and a 1.5-day safety minimum. WMS Triggers: Trigger automated background wave replenishments when forward bin inventory drops below 25% capacity, executed during off-peak shift overlaps. Dynamic Slotting: Configure WMS to auto-assign returned restock items to flexible open bins in Zone B rather than fixed locations. 5. Re-Slotting Execution Roadmap & KPIs Execution Phase: Execute "Swap-on-Zero" re-slotting over 14 days—reassign new bin locations in WMS only when existing forward bins deplete to zero units. Target KPIs: Picker Travel Time Reduction: ≥ 35% reduction in meters walked per order. Net Cube Utilization: ≥ 82% across static shelving and flow racks. Units Picked Per Hour (UPH): Increase from 85 to ≥ 130 UPH. Replenishment Starvation Rate: ≤ 0.3% of pick waves delayed by empty forward bins.