ULTRON: Managing Warehouse Space and Item Obsolescence
Case
Teaching Notes
Supplementary Resources
Abstract
The case focuses on the ULTRON’s logistics problems in its warehouse in 2016. The warehouse contained a growing portfolio of products that were older than 180 days. The main reason for the dated inventory was the absence of a warehouse management system, which resulted in a failure to implement First-in First-out (FIFO) sequence of the products in the warehouse. Given the substantial investment costs associated with installing a new warehouse management system, warehouse manager Ahuja must evaluate other alternatives for implementing FIFO at his manually operated warehouse.
This case study is provided in this Sage Business collection primarily as a basis for classroom discussion or self-study and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case study is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
© 2026 Sage Publications, Inc. All Rights Reserved.
Resources
Exhibit 1: Warehouse Layout
The data are presented in a simplified form below:
The warehouse is 335 feet in length, 380 feet in breadth.
The length is divided in three sections, from top to bottom 210 feet, 95 feet and 30 feet, respectively.
The breadth is divided in three sections, from left to right, 135 feet, 125 feet and 120 feet, respectively.
On the top center there is an Open Area for Consolidation. On the left side of Open Area for Consolidation there is an Office Area. Next to the Office Area there is a Docking bay. Three smaller Docking bays, projecting outward at the front, toward the right side of the Open Area for Consolidation are shown. Several gangways surrounding the storage areas are shown.
Height of the warehouse is 35 feet of which 24 feet is usable
Source: Authors
Exhibit 2a: Average Statistics per Month in the Warehouse (Data From October 2014)
| Category | Product | Average Inventory | Incoming Shipments | Incoming Quantity | Outgoing Shipments | Outgoing Quantity |
| Air Conditioner | AC 1.0T S | 356 | 1 | 97 | 45 | 187 |
| AC 1.5T S | 186 | 14 | 522 | 90 | 591 | |
| AC 2.0T S | 40 | 2 | 65 | 10 | 42 | |
| Colour TV | CTV 21 | 2683 | 56 | 4418 | 135 | 4230 |
| LCD Television | LCD 22″ | 41 | 2 | 6 | 1 | 5 |
| LCD 32″ | 75 | 1 | 1 | 6 | 6 | |
| LED Television | LED 16″ | 279 | 4 | 160 | 1 | 10 |
| LED 20″ | 561 | 6 | 260 | 17 | 204 | |
| LED 22″ | 786 | 20 | 1743 | 45 | 1454 | |
| LED 23″ | 148 | 1 | 224 | 8 | 194 | |
| LED 24″ | 703 | 24 | 2617 | 107 | 2136 | |
| LED 28″ | 133 | 1 | 11 | 11 | 114 | |
| LED 29″ | 476 | 6 | 680 | 42 | 819 | |
| LED 32″ | 4768 | 39 | 2823 | 173 | 4016 | |
| LED 39″ | 449 | 8 | 813 | 20 | 306 | |
| LED 40/42″ | 793 | 28 | 1880 | 85 | 2436 | |
| LED 46″ | 2 | 1 | 1 | 2 | 2 | |
| LED 48″ | 5 | 1 | 1 | 0 | 0 | |
| LED 50″ | 374 | 9 | 338 | 43 | 432 | |
| LED 55″ | 214 | 9 | 128 | 17 | 105 | |
| LED 65″ | 0 | 1 | 5 | 1 | 5 | |
| Microwave Oven | 19/20 L | 107 | 3 | 300 | 16 | 241 |
| 21/23 L | 131 | 6 | 878 | 16 | 783 | |
| 25/26 L | 70 | 3 | 196 | 19 | 203 | |
| 27 L | 34 | 1 | 150 | 5 | 52 | |
| Refrigerator | 150 L | 115 | 3 | 226 | 7 | 108 |
| 170 L | 480 | 2 | 90 | 27 | 296 | |
| 190 L | 4924 | 56 | 2634 | 229 | 1895 | |
| 215 L | 219 | 12 | 334 | 43 | 348 | |
| 230 L | 12 | 1 | 1 | 3 | 3 | |
| 47 L | 197 | 10 | 325 | 22 | 340 | |
| 600 L | 9 | 7 | 74 | 8 | 42 | |
| 650 L | 42 | 1 | 5 | 0 | 0 | |
| 80 L | 154 | 4 | 381 | 13 | 596 | |
| Small Home Appliances | Food Processor | 211 | 1 | 2 | 8 | 200 |
| Iron | 495 | 2 | 1152 | 5 | 755 | |
| Grinder | 204 | 7 | 1112 | 4 | 740 | |
| Washing Machines | 6 Kg | 663 | 3 | 238 | 24 | 330 |
| 6.2 Kg | 143 | 2 | 20 | 8 | 45 | |
| 6.5 Kg | 365 | 16 | 527 | 58 | 450 | |
| 7 Kg | 225 | 4 | 19 | 23 | 205 | |
| 7.2 Kg | 1633 | 4 | 97 | 21 | 243 | |
| 7.3 Kg | 150 | 1 | 11 | 1 | 2 | |
| 7.5 Kg | 639 | 2 | 12 | 15 | 132 | |
| 7.8 Kg | 64 | 1 | 1 | 13 | 59 | |
| 8 Kg | 268 | 4 | 59 | 11 | 57 | |
Source: Company Records
Exhibit 2b: Sample SKU Dimensions in the Warehouse
| Category | Product | L mm | W mm | H mm | Stacking Norm | Palletizable Y/N | Per Pallet load (EURO pallet) |
| Air Conditioner | AC 1.0T S | 900 | 350 | 585 | 3 | Y | 6 boxes |
| AC 1.5T S | 920 | 350 | 600 | 3 | Y | 6 boxes | |
| AC 2.0T S | 920 | 350 | 600 | 3 | Y | 6 boxes | |
| Colour TV | CTV 21 | 615 | 177 | 375 | 6 | Y | 30 boxes |
| LCD Television | LCD 22″ | 702 | 156 | 402 | 6 | Y | 35 boxes |
| LCD 32″ | 884 | 212 | 600 | 4 | Y | 9 boxes | |
| LED Television | LED 16″ | 530 | 122 | 320 | 6 | Y | 78 boxes |
| LED 20″ | 480 | 170 | 343 | 6 | Y | 48 boxes | |
| LED 22″ | 702 | 156 | 402 | 6 | Y | 35 boxes | |
| LED 23″ | 650 | 135 | 440 | 6 | Y | 32 boxes | |
| LED 24″ | 650 | 135 | 440 | 6 | Y | 32 boxes | |
| LED 28″ | 692 | 122 | 480 | 4 | Y | 36 boxes | |
| LED 29″ | 702 | 156 | 480 | 4 | Y | 28 boxes | |
| LED 32″ | 884 | 212 | 600 | 4 | Y | 9 boxes | |
| LED 39″ | 1097 | 190 | 734 | 3 | Y | 8 boxes | |
| LED 40/42″ | 1097 | 190 | 734 | 3 | Y | 8 boxes | |
| LED 46″ | 1355 | 212 | 877 | 2 | N | - | |
| LED 48″ | 1355 | 212 | 877 | 2 | N | - | |
| LED 50″ | 1355 | 212 | 877 | 2 | N | - | |
| LED 55″ | 1387 | 178 | 879 | 1 | N | - | |
| LED 65″ | 1387 | 178 | 879 | 1 | N | - | |
| Microwave Oven | 19/20 L | 452 | 360 | 250 | 3 | Y | 12 boxes |
| 21/23 L | 452 | 360 | 250 | 3 | Y | 12 boxes | |
| 25/26 L | 452 | 360 | 250 | 3 | Y | 12 boxes | |
| 27 L | 560 | 575 | 335 | 3 | Y | 6 boxes | |
| Refrigerator | 150 L | 570 | 670 | 1095 | 2 | Y | 2 boxes |
| 170 L | 570 | 670 | 1095 | 2 | Y | 2 boxes | |
| 190 L | 570 | 670 | 1205 | 2 | N | - | |
| 215 L | 570 | 670 | 1205 | 2 | N | - | |
| 230 L | 570 | 670 | 1480 | 2 | N | - | |
| 47 L | 405 | 475 | 533 | 4 | Y | 6 boxes | |
| 600 L | 620 | 675 | 1592 | 1 | N | - | |
| 650 L | 620 | 675 | 1592 | 1 | N | - | |
| 80 L | 475 | 500 | 825 | 3 | Y | 4 boxes | |
| Small Home Appliances | Food Processor | 607 | 277 | 337 | 3 | Y | 12 boxes |
| Iron | 252 | 115 | 122 | 3 | Y | 90 boxes | |
| Grinder | 235 | 210 | 237 | 3 | Y | 45 boxes | |
| Washing Machines | 6 Kg | 620 | 635 | 1035 | 2 | Y | 2 boxes |
| 6.2 Kg | 620 | 635 | 1035 | 2 | Y | 2 boxes | |
| 6.5 Kg | 620 | 635 | 1035 | 2 | Y | 2 boxes | |
| 7 Kg | 620 | 635 | 1035 | 2 | Y | 2 boxes | |
| 7.2 Kg | 865 | 545 | 1100 | 2 | Y | 1 boxes | |
| 7.3 Kg | 865 | 545 | 1100 | 2 | Y | 1 boxes | |
| 7.5 Kg | 865 | 545 | 1100 | 2 | Y | 1 boxes | |
| 7.8 Kg | 865 | 545 | 1100 | 2 | Y | 1 boxes | |
| 8 Kg | 865 | 545 | 1100 | 2 | Y | 1 boxes | |
Source: Company Records
Exhibit 3: Product Composition Across Categories at the Warehouse
| Product type | Percentage composition |
| Refrigerators + Washing machines | 50% |
| LCD/LED/CTV + Small home appliances | 30% |
| Air conditioners + Coolers | 20% |
Source: Company Records
Exhibit 4: List of Vehicles Available for Dispatch at the Warehouse
| Type of vehicle | Number available |
| Tata 1109 Truck (24 ft) | 1 |
| Tata 407 Pickup | 3 |
| Tata Maximo | 4 |
| Tata Ace | 1 |
| Total | 9 |
Source: Company Records
Exhibit 5: Employees at the Warehouse
| Employee Designation | Number available | Skill level |
| Warehouse manager | 2 | Skilled |
| Supervisors | 7 | Skilled |
| Put-away and Picking personnel | 24 | Unskilled |
Source: Company Records
Exhibit 6: Hydraulic Fork Lifting Pallet Trolleys at the Warehouse
Source: The Kovai Forklifts. (n.d). Products. Retrieved from http://www.kovaiforklift.com/mahindra-swaraj-forklifts.html
Exhibit 7: Dual Cycle Operation at the Warehouse
The positions are as follows: Put-away is located on the left side; Picking is located on the right side; Consolidation Area is located on the inner side of bottom center and Docking Bay is located on the outer side of the Consolidation Area.
The cyclic process is as follows: Start from the Consolidation Area, go to Put-away then go to Pick-up and finally Return to Consolidation Area.
Source: Authors
Exhibit 8: Number of Products Transferrable in a Cycle Using a Trolley
| Product | Number transferrable in a cycle |
| Refrigerator (Big – Above 200 L) | 2 |
| Refrigerator (Small – Below 200 L) | 4 |
| Washing Machines | 4 |
| Colour Television | 10 |
| LED/LCD Television (up to 29″) | 20 |
| LED/LCD Television (32″ and above ) | 12 |
| Microwave Oven | 10 |
| Air conditioner (Split) | 6 |
| SHA (Carton of 10 units) | 8 |
Source: Company Records
Exhibit 9: Pallet Flow Rack System
Source: Next Level storage solutions. (n.d). Retrieved from https://www.nextlevelstorage.com
This case study is provided in this Sage Business collection primarily as a basis for classroom discussion or self-study and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case study is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
© 2026 Sage Publications, Inc. All Rights Reserved.
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