How to Optimize a Warehouse With Real-Life Use Case Examples

Planning and optimization of a warehouse are not easy, especially when dealing with finite assets such as stock or pallet storage. Some warehouse owners and operators make the mistake of trying to do too much in too little time and end up in a situation where there are too many shelves full of products but no room for them to be stored. The main goal of an operation like this is to make sure that goods can be retrieved quickly when they are in need. In order to accomplish this, it’s important to first evaluate the existing stock and identify its various objective functions that must be achieved in order to achieve the main goal.

After identifying the objects that should be stored on shelves in the warehouse, the next question is whether or not they are being used or abused. In other words, the storing and the retrieval processes of the inventory can be optimized depending on how well the depositor is being served. Let’s take a look at some common operations in operation that are optimized by the use of the warehouse’s depositors.

Stock Rotator

 A very familiar example of a warehouse optimization problem occurs when a warehouse is overcrowded with un rotated stock. If shelves are placed in the center of the warehouse so that the products on the ends of the longest shelves face the door, then the flow of traffic will be very easy to manage. Of course, if products are positioned so that customers have to turn their backs to the door, stock rotation can become a problem. If you want to solve this problem, you should consider rotating the stock.

Travel Time Storage

It is another problem faced by most warehouse owners. If two identical items are stored next to each other on opposite sides of the warehouse, then it becomes difficult to determine which product is which. This problem is commonly encountered because of incorrect use of warehouse floor space. In most real-life use cases, goods with similar sizes, colors and weights should be stored together. For instance, you should never put a small vacuum cleaner next to a large, bulky vacuum cleaner.

Free Space Automated warehouse management systems help you achieve optimal utilization of available free space. If there is a big empty wall, you should probably install a roller rack or an industrial pallet rack. In addition, you should try to keep your trucks and other vehicles perpendicular to the free space. Doing so will help you maximize your free space.

Determination Factor

One important optimization model for a commercial facility is the determination factor. This factor controls how much stock is moved from one place to another. Each inventory level in the warehouse has a fixed deposit that determines how much material can be stored.

Free Space and Determination Factor Based on the determination factor, the next optimization model is the distribution function. This function divides the available free space into fixed and variable levels. The level of stock in a fixed location is based on how many inventory shelves are accessible to that location. In the same way, the level of stock in a variable location is determined by the number of available shelves. These two functions are combined using barcode labels.

Barcode Labels and Stock Rotations 

Based on the optimization model described above, the next problem is to determine how stock is to be distributed. This problem is solved by using barcode labels. Each label is assigned a certain code to identify its contents. When a customer inserts a product order, the order is matched with a label. Based on the information contained in the labels, the stock level is automatically increased or decreased.

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