Accounting Best Practices, Fifth Edition

16–12. Use Different Storage Systems Based on Cubic Transactional Volume

It can be difficult to slot items into various inventory locations around a warehouse just based on their cubic volume, since this single criterion does not reflect the amount of moves to which each one will be subject. As a result, the warehouse staff may find largely unused items slotted near the shortest access paths in the warehouse, while high-use items are parked in the rear, causing long travel times. This is a particular problem for small parts, since there are a variety of both low- and high-efficiency storage modes available for them.

A good solution is to assign storage locations based on both an item’s cubic volume and number of transactions. As a result, some high-use pallets will be stored near a major picking area, while other less-used pallets will be kept in random storage along a back wall. Similarly, low-volume small parts may be stored in bins or storage drawers, while high-volume small parts will be stored in carousels from which picking can be done much more quickly. This approach can even extend to the height at which small parts are stored in fixed bins, with high-volume items stored at waist level for easy picking.

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