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           Right-Size Your Slots                                                                                              Mezzanine Installation

           Match the size and sales of the item to the right sized pick slot to maximize the utilization of the               If your building layout permits, consider the use of a mezzanine to house functions that do not
           picking slot cube. Having various sizes of picking slots can facilitate this process. The same logic               require high-bay storage. These can be expensive and are fairly permanent, but will maximize
           applies to locations where you store reserve or overstocks. In forward picking, keep 4-7 days of                   warehouse space utilization.
           sales by SKU to reduce replenishment.
                                                                                                                              Keep It Simple
           Use Off-Site Location for Overstock
                                                                                                                              Where you have a choice between a complex and simple solution, choose the simple solution. For
           If you store a large quantity of excess inventory for a few items, consider some type of offsite                   example, consider adding pallet rack tiers upward. An example of complexity could be moving
           storage for the excess, thus freeing up space for supporting the fulfillment operation.                            racking to narrow aisles. Is there a return on investment for your solutions?

           Drop Shipping as An Option                                                                                         Warehouse space often represents 15% to 20% of the cost per order. Moving to new space is
                                                                                                                              expensive and takes a lot of time. Make sure you have assigned someone responsible for your
           If you store and ship large items, consider utilizing some form of drop shipping to reduce your in-                ongoing planning and warehouse space utilization analysis process.
           house inventory and costs.
                                                                                                                              7.2 Use of Material Handling Equipment’s in a warehouse
           Aisle Widths
                                                                                                                              Forklifts, reach trucks, order pickers and pallet trucks are the typical parts of the material handling
           How wide are your warehouse aisles? Try to design the minimum width required to match the                          equipment (MHE) fleet. Anything that relates to the movement, storage, control and protection of
           material handling equipment used without compromising operating efficiency.                                        materials, goods and products throughout the process of manufacturing, distribution, consumption
                                                                                                                              and disposal is part of this category of equipment. Used to increase output, control costs, and
           Cross Docking
                                                                                                                              maximize productivity, warehouse management has a number of ways to determine how efficient
           If possible, consider cross docking large releases of back orders or single-line orders to reduce the              is the use of the material-handling equipment in any kind of operation.
           amount of inventory requiring storage locations.
                                                                                                                              Uses of Material Handling Equipment

           Best Utilization of Your Building
                                                                                                                              Uses of Material handling equipment are as follows:
           Make sure you study your building to determine how it can best be utilized from a space standpoint.                •  Reduce manufacturing cycle time
           Consider clear stacking height, column spacing, building impediments and overall process flow.
           Try to match vertical space needs with the building characteristics.                                               •  Reduce delays, and damage

           Depth of Storage                                                                                                   •  Promote safety and improve working conditions

           Review not only the effective use of the height of locations, but also the depth of storage; for                   •  Maintain or improve product quality
           example, consider double-depth racking.
                                                                                                                              •  Promote productivity
           Supply Storage
                                                                                                                              –   Material should flow in a straight line
           If you have to store supplies or packing materials, try to manage the inventory to avoid overstocks.
           See if your corrugated supplier can keep some inventory at its site for you, and take delivery every               –   Material should move as short a distance as possible
           few days.
                                                                                                                              –   Use gravity
           Door Use
                                                                                                                              –   Move more material at one time
           If you have separate shipping and receiving docks, consider combining them to save space.
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