Number IPP 203

Dated: 07/19/11
Replaces: 5/13/99

Internal Policy and Procedures

Storage and Distribution of Non-MDS Inventory

POLICY:

Materials Distribution Services (MDS) provides storage space and distributes merchandise for UW Departments and State Agencies at cost. This merchandise is not owned by MDS and is not included in MDS inventory.

PROCEDURES:

1. Service Proposal

1.1 MDS will submit a service proposal or memorandum of understanding (MOU) to interested department or agency interested in renting space/or distribution services.  The proposal will include an estimated monthly and annual fee which will equal MDS estimated costs for the upcoming fiscal year.

1.2 When an agreement is reached, both parties will sign the MOU and enter into an agreement with the customer for provision of services. The agreement will identify services to be provided by MDS, department responsibilities, annual fees and billing procedures.

2. Computation of Storage and Distribution Costs

2.1 Space charges are based on the number of locations needed to store merchandise. A Quick Pick location equals actual space of the location plus 3 feet of aisle. Bulk and Overflow locations equal actual location space plus 1/3 of 1/2 of the aisle because they are stored three high.

• Quick Pick Location is equal to 3 ft x 4.5 ft
• Bulk Location is equal to 4 ft. long x 4 ft. wide x 6 ft. high

2.2 Service and rental costs will be calculated monthly and billed to an MD account number