How to Layout a Warehouse or Distribution Center

Warehouse Optimization Example

RightChain’s Warehouse Layout Optimization System minimizes the material handling cost to, from and between warehouse activities by optimizing the building configuration and maximizing adjacency. In this client example, the heatmap reveals the near random adjacency and an inefficient 8 by 3 configuration.

The optimized layout has a high degree of adjacency, a U-shape flow, and a 6 by 4 configuration. The result is a 12% reduction in inter-activity material handling costs. As a side note, our research has confirmed that all things being equal, a 1.5 ratio of width to depth yields the lowest inter-activity material handling cost.

World Class Warehousing™

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