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by Laurus Nobilis
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Supply Chain | Warehouse Design

Warehouse Planning Levels (E)

Warehouse DesignLogistics is very expensive function of every company. Warehouse is very expensive, often contributing 25% of total logistics. At same time warehouse need to provide sufficient service level to customer. Therefore, planning of warehouse design is crucial for effective and cost efficient service.

 

Posted: Nov 2013


   

The next question related to warehouse design is what level we should be looking at for that particular year at the planning horizon. And in this chart we can see a normal seasonality. This particular one has a peak in summertime with winter offseason periods.

So if we look at the seasonality there we can see that if we equipped up to average throughput levels then we've got enough equipment to cater for four out of twelve months that means for eight months we wouldn't have enough capacity in the warehouse.

On the other hand, if we equip or staff up to peak level for the August peak then in fact we have a lot of extra capacity, and as you can see, we would only be at 50% capacity utilization or staff utilization during winter offseason, so it would be a lot of wasted capacity.

But quite often it is useful to pick a planning level which is, say, average plus 10%, plus 15% , plus 20%, depending on the nature of the seasonality pattern and catering for exceptional peaks in other ways beyond that.

Warehouse Design Planning Levels


WAREHOUSE DESIGN

7 Steps of Warehouse Design
Planning Horizons
Planning Levels
Equipment resource Levels
Day in the Warehouse
Warehouse Zones
Case Picking Methods
Warehouse Equipment Selection
Fixed and Variable Costs
Relative Attributes of Warehouse Design
Suitability for SKU Throughput Ranges
Warehouse Equipment Attributes Matrix
Final Warehouse Equipment Selection Factors


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