Wagner Bros plans to build a new warehouse near Sidney, Australia, in order to supply its sales points in New South Wales. On the basis of a preliminary analysis of the problem, it has been decided that the facility should accommodate at least 780 pallets of 90 × 90cm2 dimension. The pallets will be stored onto conventional racks and transported by means of reach trucks. Each rack has four shelves, each of which can store a single pallet. Each pallet occupies a 1.05 × 1.05m2 area. Racks are arranged as in Figure 5.24, where side aisles are 3.5m wide, while the central aisle is 4m wide. The average speed of a reach truck is 5km/h. Using Equations (5.9) and (5.10), we obtain