Question

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.

Explain four (4) important factors in a essay form with proper explanations and examples, that a warehouse manager has to take into consideration that will influence the eventual size of a new warehouse. (warehouse managment).

Answer 1

THE MANAGER HAS TO TAKE THE FOLLOWING DECISIONS:

1. The size of the current warehouse :

By understanding the current warehouse condition one can determine whether one's new warehouse should be of similar size or it should be modified according to the current needs of the organization.For example: The warehouse manager is running out of space in the old warehouse,then it makes sense to go newer WAREHOUSE; if one has a lot of space in the existing warehouse.

2. operational processes

In every operation, goods and product flow through a various kind of processes like from the moment they arrive in the warehouse,packaging, labelling, to when they are shipped. this will determine how a large portion of your new facility’s footprint is put to use  and for that reason, it is really important  to understand flow of goods before you settle on a layout or building size.

for example:
By understanding the current flow of product, one can design new warehouse accordingly so that the resource can be utilized efficiently and take less time.

3. inventory size

The amount of inventory in operation  that must stay in business will give one an idea of how large portion of the warehouse space will be used.
for example:one might be implementing a system of drop-shipping larger items so that you do not need to keep them in long-term inventory, reducing the amount of inventory space necessary to keep your operation moving.

4. expansion planning= Opening a new warehouse is generally due  to accommodate an increase the demand: When one's business is growing, and they need another warehouse to deliver what customers wants.
It is important to keep business growth in mind when building your new warehouse.

for example:
If there are strong indications that growth will be rapid, it may be in your best interest to preemptively build out the capacity of your facility. If growth will be slower, it may make more sense to do so incrementally as the increased demand arises.