HOW TO MEASURE WAREHOUSE PERFORMANCE

Warehouse Location Utilization Metrics

In our warehouse metrics methodology we recommend that storage location utilization be tracked in two ways – Location Facings Utilization AND Location Cube Utilization. Location Facing Utilization is measured as the portion of location (facings) that are occupied at all. For example, if there are 10,000 Pallet locations in a warehouse, and 8,700 of them are occupied, then measured as the portion of the cube capacity of a location that is occupied. For example, if a storage location has a cube capacity of 64 cubic feet, and 32 cubic feet are occupied, then the Location Cube Utilization is 50%. The Location Facing Utilization is 87%. Location Cube Utilization is

Location Facings Utilization and Location Cube Utilization in the Reserve Storage and Forward Picking areas in the DCs of a large food and beverage company.

Page 31

RightChain™ | Supply Chains. Solved.

Copyright and Confidential | RightChain Incorporated | All Rights Reserved