Tips for warehouse sizing

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 usually do

Leave a Reply