Tips for warehouse sizing:

• Don’t get fooled by “averages”
• Consider using statistical tools, such as standard deviation, and P.90 probability to analyze operational data – both in and out bound
• Understand which system components can expand capacity by adding labor, and which can’t
• Design expansion capability in from the start; SKU count almost always goes up, not down over time
• Get executives to sign off on future sales projections that will serve as the basis of the design; if they won’t or can’t, then round up
• Be very leery of unrealized plans to increase inventory turns; easier said then done
• Consider ability to add overtime and additional shifts to expand initial system capacity
• Recognize more companies regret having less capacity than those that think systems were over-specified
• You can usually add labor to increase throughput in pick modules, but if a sorter is maxed out, there is not much you can do