In this example, we convert the item-family inventory distribution into a distribution describing on-hand inventory in terms of pallets of merchandise on-hand. As a result, we can recommend the appropriate mix of pallet storage modes. For example, the 10,000 SKUs with less than a pallet of inventory on-hand should probably be stored in shelving or decked racking. The 1,200 SKUs that have 1 or 2 pallets on-hand should probably be stored in single-deep pallet rack. The 500 SKUs that have 3-5 pallets on-hand should probably be stored in double-deep and/or push-back rack. The remaining SKUs, those with more than 10 pallets on-hand, should probably be stored on the floor in deep block stacking lanes, in drive in/thru rack, and/or in pallet flow lanes.