The choice of storage system should allow:

• Effective warehouse space utilization; making good use of building volume by choosing the right storage system, good planning for warehouse layout and minimising aisle widths
• Accessibiliity to stored products; minimizing distances travelled which ultimately reduce time taken to locate the products
• Incorporate system to keep track of stock movement and locations
• Ability to secure the property against damage, fire, theft, and etc
• Provide an environment where it prevents deterioration, contamination of stock and etc

Factors that influences the choice of storage medium are stated below:

• Physical characteristics of products being stored in the warehouse (e.g. size, shapes, weight and whether they can be stacked)
• Capital availability (e.g. costs of racking system, incorporating a computerized system to track the products and etc)
• Accessibility to products stored
• Stocks and throughout level
• Number of line items
• Value of stored products
• Characteristics of available storage methods and equipment
• Hazard factors such as fire, noxious gaeses and etc
• Deterioration factors that affects the product life

Note:

In FIXED location, any given given location within the warheouse is only catered to store a specified product line. Mainly, the fixed location is at the Order Picking area. The order picker will be very familiar with the storage location, hence, it is faster in picking the items.

On the other hand, RANDOM location is usually adopted at Main Store area where when a designated location is empty, it can be used to hold any other product line. This is ideal for main store area as the bulk pack products are just unloaded. Since the cycle time is critical to clear the unloading bay, random method is faster (and save space) so long as there is an appropriate storage location for the bulk products.

The above was posted by HEIDI