1,Based on Turnover Rate and ABC Classification
In various warehousing operations, one of the most time-consuming and labor-intensive tasks is moving goods. Therefore, when determining storage locations, the primary consideration should be to minimize walking distance-placing frequently accessed items close to entrances and, conversely, placing infrequently accessed items farther away. In retail warehouses, items are typically received in smaller, bulk quantities, while shipping often involves breaking down larger quantities. Thus, for these types of warehouses, high-turnover goods should be located near exits.
The widely accepted ABC classification principle in the warehousing industry can be seen as an extension and refinement of the turnover rate principle. The main method involves employing different storage and picking strategies based on the varying shipping frequencies of items, which has yielded good results in practice. However, in the e-commerce sector, the unpredictable nature makes it challenging to implement this principle.
2,Product Correlation Principle
Among inventory items, some products are often ordered together, such as pencils and erasers. These correlated products should ideally be stored in adjacent locations to shorten the picking path. By analyzing historical order data, we can identify the correlation between inventory items. It's important to note that correlations may change with different sales seasons.
3,Product Identity Principle
This principle means that the same type of item should be stored in the same location, known as a one-item-one-location policy. If a single item is stored in multiple locations, the workload for shelving, picking, and inventory counting will increase. In modern distribution centers, due to frequent changes in incoming and outgoing goods, achieving a one-item-one-location policy is not simple.
4,Product Similarity Principle
Similar items refer to those with comparable main attributes, such as yellow beans and green beans. This principle suggests that similar items should be stored in proximity to each other, which is a commonly used classification storage method. When the functionality of warehouse management information systems is relatively weak, classification storage can significantly reduce manual management difficulties. However, this sometimes reduces space utilization and increases picking paths, so this principle should be applied judiciously.
5,Product Complementarity Principle
This principle requires that mutually replaceable items be stored close to each other, so that one can be substituted for another in case of stockouts. This principle has a narrower applicability because warehouses typically cannot modify orders. For long-term supply partners, this can be done under pre-agreed conditions.
6,Product Compatibility Principle
Compatibility refers to the allowed extent to which items can be stored together. For example, items with specific odor requirements are considered incompatible, such as perfumes and tea. The compatibility principle is one of the fundamental reasons for classification storage. The challenge lies in achieving this while minimizing space occupation and costs.
7,First In, First Out Principle (FIFO)
This principle mandates that items received first should be the first to be dispatched, which is typically applicable to items with shorter shelf lives, such as food. If the storage positions and the warehousing and distribution processes are not carefully planned, achieving FIFO can be difficult and may require more storage space. Pharmaceuticals must be stored and distributed according to GSP regulations based on production batches, adding another layer of operational specificity.
8,Stacking Height Principle
The stacking height principle states that to improve warehouse space utilization, items should be stored as high as possible. Simple stacking, such as placing one box on top of another, may hinder selective picking and cannot be excessively high, which leads to the use of multi-level high racks. There are various types of multi-level high racks, each suited for specific applications and requiring different loading and unloading machinery.
9,Weight Characteristics Principle
This principle requires arranging storage locations based on the weight of the items. Generally, heavy items should be placed lower, while lighter items can be placed higher. Additionally, one must consider the differences between manual and mechanized handling-heavy items for manual handling should be stored below waist height, while the storage height for mechanized handling can be higher, depending on the equipment and rack compatibility.
10,Facing Aisle Principle
This principle indicates that for the convenience and speed of accessing goods, items should face the aisles. The identification markers, names, and numbers of goods and storage locations should also be positioned near public view in the aisles. Similarly, frequently shipped items should be stored close to the main aisles.
11,Product Size Principle
This is a basic principle for planning storage locations, which requires designing storage space according to the different sizes of goods. This principle also serves as a basis for selecting types of racks, such as pallet stacking, beam racks, shelf racks, cabinets, etc.
12,Storage Location Representation Principle
The storage location representation principle is also one of the basic principles for planning storage locations, requiring the use of a simple, standardized, and unique method to indicate storage locations. Most warehouses currently use a letter and number coding system that can represent information about storage areas, aisles, arrangements, levels, and sections. A clear storage location representation can greatly simplify the management of diverse inventory.
13,Visibility Principle
Because storage location management is the foundation of warehouse management and location information is fundamental to warehousing operations, the storage location information must be clearly marked. This is very effective in enhancing the efficiency of warehousing operations. Tools such as size markers, signs, position indicators, and electronic displays can be used for this purpose.
