The requirement for high levels of customer service, increasing numbers of SKUs and high labor costs have dramatically increased the complexity of warehouse operations. It is no longer sufficient to manage a warehouse based on a simple, arbitrary “ABC” classification of SKUs, which treats all those in a category as if they were identical. Instead, each decision – such as where to store or where to pick product – must be based on careful engineering and economic analysis. Each SKU must identify its own cheapest, fastest path through the warehouse to the customer and then compete with all the other SKUs for the necessary resources. This results in warehouse operations that are finely tuned to patterns of customer orders and maximally efficient. Learn the concepts necessary to address modern warehouse trade-offs between space and time in optimizing and managing your warehouse.
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