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by Laurus Nobilis
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Supply Chain | Warehouse Design

Final Warehouse Equipment Selection Factors (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: Dec 2013

Based on the cost comparison we can say that this is the best type of equipment or most appropriate type of equipment for this particular zone of the warehouse.

We then have to consider the overall mix of equipment and how they fit together in the layout to determine whether we've go the right combination of equipment types for each zone. For example, if one particular zone is fairly small, and say for example we select narrow aisle racking, but we only need one truck to serve it, then we have to be aware that if that one truck breaks down, we cannot access any of those goods in any other way.

Therefore it may be prudent instead of having a small zone of narrow aisle for that production range, we may actually put that in to the main wide aisle system with all the other goods and therefore have a common zone for that. So those are types of considerations that need to be considered to determine the overall mix of equipment.

Also, of course, the actual capital cost compared to the initial budget considerations if there are any in that respect. And also, timing and implementation factors need to be taken into account.

Once that has been done for the forecast, then it is normally important to consider sensitivity analyses, what if that forecast isn't quite matched, or what if the actual figures are ten or twenty percent above forecast. Is this still the best solution that we are coming up with?

And finally, it may be advisable to actually simulate the operations on the computer warehouse simulation. Particularly if it is an automated solution to ensure that everything flows through and there are no bottlenecks anywhere.

Final Warehouse Equipment Selection Factors



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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