Design Principles 1 ~ 3
1) Four Major Functional Zones:
They are zones for Docking/Receiving, Storage, Picking/Kitting, and Shipping. These zones are identified by using historical data, forecasting, and projections.
They are zones for Docking/Receiving, Storage, Picking/Kitting, and Shipping. These zones are identified by using historical data, forecasting, and projections.
(2) The Pareto Principle, or 80/20 rule:
This rule of thumb states that approximately 80% of warehouse activity is generated by 20% of products, which are frequently moved within the facility. The next 15% of activity comes from 30% of stock-keeping units (SKUs), whose movement rate is defined as the average. The remaining 5% of activity is attributed to 50% of the inventory, which is slow-moving.
This rule of thumb states that approximately 80% of warehouse activity is generated by 20% of products, which are frequently moved within the facility. The next 15% of activity comes from 30% of stock-keeping units (SKUs), whose movement rate is defined as the average. The remaining 5% of activity is attributed to 50% of the inventory, which is slow-moving.
(3) Warehouse ROI Based on Per Cubic Foot:
The optimal warehouse layout considers not only the available floor space, but also the vertical space available for use. For example, adding taller storage units and the right equipment for picking and storing can help increase capacity while preserving the same footprint. Different types of shelving may also need to be considered for different goods and materials. A good warehouse layout maximizes access and safety for all items.
The optimal warehouse layout considers not only the available floor space, but also the vertical space available for use. For example, adding taller storage units and the right equipment for picking and storing can help increase capacity while preserving the same footprint. Different types of shelving may also need to be considered for different goods and materials. A good warehouse layout maximizes access and safety for all items.


