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What is warehouse area utilization and capacity utilization?

Jan 27, 2021

In recent years, with the continuous development of China's logistics and supply chain management, the indicators in the field of warehousing logistics are mentioned more and more frequently. The following is a summary of the utilization of warehouse resources and some indicators.

When evaluating the performance of warehouse resource utilization, there are generally two indicators to consider: warehouse area utilization and warehouse capacity utilization. The utilization ratio of warehouse area is the ratio between the usable area and the total building area of the warehouse, and the utilization ratio of warehouse capacity is the ratio between the actual quantity or volume of goods in stock and the quantity or volume that should be stored in the warehouse.

In practice, there are some preconditions for these two indicators. For example, the two indicators can be compared and considered for specific inventory goods; however, for different inventory goods, the comparability between the two indicators is low due to the different storage requirements of different goods (such as stack height limit and the number of variety items). Therefore, when we discuss the utilization rate of warehouse area and warehouse capacity, we usually only compare and consider specific customers and specific goods.

The following two types of customers, without much emphasis on other details of inventory management requirements (such as "five distance" requirements), compare the similarities and differences of warehouse area utilization rate and warehouse capacity utilization rate for flat warehouse and five layer shelf warehouse.

According to the storage attributes of different commodities, the index of warehouse area utilization rate of flat warehouse changes greatly; and the denominator of warehouse capacity utilization rate "warehouse should store quantity or volume" also changes. On the basis of certain storage management experience, "warehouse should store quantity or volume" can give the rated quantity of certain customer commodities, and then calculate the warehouse according to the actual situation Utilization rate of storage capacity;

After the shelf type warehouse is built, the inherent pallet location will not change. Therefore, the storage capacity of the warehouse will not change due to different commodity attributes, and the index of warehouse resource utilization will not change (regardless of the impact of commodity turnover characteristics on the location utilization);

It is emphasized that the resource utilization rate of shelf type warehouse is higher than that of flat warehouse, which should be given only for specific commodities, while for some special storage requirements (such as single variety and large batch quantity), the resource utilization rate of warehouse will decline;

When choosing which type of warehouse to use to deal with specific goods, we should fully consider the requirements of commodity storage management, select appropriate and targeted warehouse form, and scientific and reasonable storage equipment, so as to maximize the utilization of resources and reduce investment risk.


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