Question

In: Operations Management

When designing a new warehouse, its size is the most critical attribute. This is because once...

When designing a new warehouse, its size is the most critical attribute. This is because once built, the outer walls of the warehouse form the boundaries within which all operations must take place.

Propose a solution in a essay form with explanations and examples, on how the cubic storage capacity of a warehouse can be increased given a fixed warehouse floor area. (warehouse management)

Solutions

Expert Solution

When designing warehouses and other storage facilities, space is the most valuable asset. By making the best use of their warehouse space, businesses can significantly increase the amount of product they can store in the facility. Having a big storage capacity and being able to store more items at once, they can save money on transportation costs and related expenses.

Methods by which we can increase the cube storage capacity in a given floor area:

Stacking: The warehouse is to simply stack loaded pallets/boards on top of other loaded pallets/boards. Some products, like canned goods or any other hard products, easily support the additional weight. However, this method is heavily dependent on product strength and stability and isn’t always an option.

Racking: The Board rack provides support for a pallet above ground level, allowing more pallet positions in the warehouse. However, placing and retrieving inventory can be a challenge as the vertical height of racks.

Automation: An Automated Storage and Retrieval System (ASRS) maximizes cube utilization in the warehouse both vertically and horizontally. It requires less space to access inventory, allowing aisles to be narrower and minimizing the areas that need to be accessible for vehicles.

Mobile racks: The operator can move the racks left or right, creating an aisle anywhere within those rows to access particular products.

Removing obsolete or excess Inventory: organization should keep an update of the stocked goods and remove obsolete or excess inventory to make effective space in the warehouse.

Steps are required to calculate the cube storage capacity:

  1. Measure the space you have to work with
  2. Define the fixed obstacles (columns, walls, doors, clearances, etc.)
  3. Understand the product stored and handled
    • Define storage condition zones
    • Throughput/replenishment requirements
    • Unit handling loads
  4. Establish the material flow paths
  5. Determine auxiliary facility requirements (offices, dock staging, hold and inspection, etc.)
  6. Generate alternatives
  7. Evaluate alternatives
  8. Recommend and implement improvements

Optimizing Warehouse space is very important. It helps in:

  1. Saving Money
  2. Increasing Employee Productivity
  3. Avoiding Missed Sales
  4. Improving organization

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