Warehouse and Storage Layouts
LO 9.3 Discuss modern warehouse management and terms such as ASRS, cross-docking, and random stocking
The objective of warehouse layout is to find the optimum trade-off between handling cost and costs associated with warehouse space. Consequently, management’s task is to maximize the utilization of the total “cube” of the warehouse—that is, utilize its full volume while maintaining low material handling costs. We define material handling costs as all the costs related to the transaction. This consists of incoming transport, storage, and outgoing transport of the materials to be warehoused. These costs include equipment, people, material, supervision, insurance, and depreciation. Effective warehouse layouts do, ...
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