popular biz reading
Marketing Mix: Promotion
Employee Turnover
Marketing Mix: Price
Planning and Organizing
Maslow's Hierarchy of Needs
Key Performance Indicators
Sustainable Competitive Advantage
Ishikawa Fishbone Diagram
Price Determination
Supply Chain Concept
Employee Induction
3 Basic Finance Statements
Sales Forecast Accuracy
FMCG Sales Boosting
OTIF - On Time In Full
Merchandising at the Point of Sales
Promotion Mix: Advertising
Employee Motivation
Porter's 5 Forces
biz sponsors
BrainCast Relaxation
Advertise on Biz Development
My BrainCast
Energy Booster
biz archive

My Introspective

by Laurus Nobilis
My BrainCast

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


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

My BrainCast Self Improvement
blog comments powered by Disqus
My BrainCast My BrainCast energy Booster My Braincast Deep Sleep
My BrainCast Mandala Meditation My BrainCast Relaxation