Wisdom for Warehousing | The Optimal Role of Warehousing in Supply Chains and Business

Warehouse Optimization In technical terms, optimization is an approach to decision making or problem solving that frames the issue at hand with an objective function and constraints. In warehousing, the objective is to minimize total warehousing costs. The constraints are the service, throughput, storage, safety, and security requirements. Total warehousing costs include the cost of labor, occupancy, material handling systems, and information handling systems. Service requirements (constraints) include inventory and shipping accuracy as well as inbound and outbound cycle times. Throughput requirements include peak and average inbound and outbound transaction rates at the docks and throughout the facility. Storage requirements, peak and average, are dictated by the inventory strategy and associated inventory peaks and valleys. Safety and security requirements are corporate mandates. RightChain™ Warehousing considers the full range of warehousing costs and constraints in crafting optimal warehouse designs.

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