Assignment of storage space

Organization is the key to warehouse logistics

Thousands of the different types and forms of goods can be stored simultaneously in the same warehouse. To optimally use this costly space and enable a specific item to be retrieved quickly, a clear, coordinated organization of storage space is necessary. This is the only way to economically and efficiently operate a warehouse. Storage space can basically be organized in two different ways: fixed storage space allocation and completely free or random space allocation.

Giving each item its own warehouse location

A very simple way to determine the location of a stored item is to always assign it to the same place. A key feature of assigned storage space is the separate storage of each group of goods. As a result, goods are easy to find. With this system, a product can still be retrieved even when the inventory-management system crashes. In this system, however, the capacity utilization of the warehouse can be limited, especially with fluctuating inventories for individual groups of goods.
In one variation of this warehouse organization system, a storage space is assigned within fixed areas. This can be accomplished through lateral distribution or a free assignment of storage space within fixed zones.

Several storage units in various aisles

One problem associated with the fixed assignment of storage space is that an item cannot be retrieved if, for example, a permanently installed means of conveyance like a storage and retrieval unit in a high-bay warehouse malfunctions. This problem can be avoided by distributing several storage units of an item in various aisles. The strength of this system, known as lateral distribution, is that it provides simultaneous access to high-demand goods in several aisles. This system requires an IT system that can show which goods are stored in which areas.

Storage space assigned within dedicated areas

Another way to efficiently assign storage space is to segregate groups of goods, for example, by picking frequency, and allocate specific groups of goods to certain sectors. In this Zoning system, goods that are frequently stored and retrieved are stored closest to the storage and retrieval points. Goods that have large quantities of selling units, by contrast, should be stored far from the storage and retrieval points in order to keep the movement distances short for as many goods as possible. For this purpose, the goods can be classified with the help of ABC analysis. One strength of the free assignment of storage space within fixed zones is that goods can be handled more frequently. The storage capacity, of course, is reduced in the process. But an IT system that provides efficient zoning and manages the storage space of specific goods is a prerequisite.

Random storage in the warehouse

A warehouse that lacks a fixed form of goods assignment is known as free assignment of storage space, random storage or chaotic storage. Any kind of good can be stored in the first space that becomes available. The goal is to optimally fill the storage space - even if demand fluctuates considerably. Since the goods in random storage are placed in the first available storage space, a system that performs electronic management and control of storage and retrieval is required for warehouses with a large number of storage spaces. This task is handled by an electronic data processing system that automatically shows a storage space of the required size for a good requiring storage. It registers which product is stored in which quantity and in which space.

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