Warehousing Layout and Design Strategies

One key to effective design is the relative dominance of picking or storage activity. Techniques that maximize space utilization tend to complicate picking and render it inefficient while large storage areas increase distance and also reduce picking efficiency. Ideal picking requires small stocks in dedicated, close locations. This works against storage efficiency.

Using automated picking, storage, handling and information can compensate for these opposing requirements to a degree. However, automation is always expensive to install and operate.

The figure below shows how different transaction volumes, storage requirements and technologies lead to different design concepts.

High Pick & High Storage This indicates a large and active warehouse such as a Distribution Center (DC). In these situations, high technology automated picking combined with mechanized handling and high density storage justifies itself.	High Pick & Low Storage With high picking activity but low storage, the picking area should be compact and dense and storage is simple. Some automation of picking may be justified.
Low Pick & High Storage Here the requirement is for high density storage with high bays, multi-levels and dense packing. Low turnover means that picking can be manual or semi-manual.	Low Pick & Low Storage A simple, small warehouse requires neither automation or sophisticated storage devices. Stacked pallets, floor storage or simple racks and shelves suffice. Handling is manual.