3-Factor Analysis

A complete assessment for warehouse design includes three cost factors that interact to deliver value: Space, Labor, and Equipment.

Space

Inventory analysis reveals appropriate storage solutions, including floor storage, standard rack, and deep rack. Space includes aisle widths for accessing storage and for traveling within the system.

Labor

Material handling labor contributes the highest cost. The cost can be offset by automation assuming there is a business case.

Equipment

Material handling equipment (MHE) includes mobile equipment like pallet jacks and forklifts, in addition to fixed placements of conveyor, rotating carousels and other equipment.

To find the right design solution understand how space, labor, and equipment work together.

Design supports decisions related to expenses for space, labor, and equipment. The three factors work together.

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