Logistics

Warehouse Storage Location

Maximizes warehouse efficiency by strategically placing products based on turnover rates, picking frequency, and product characteristics.

This template can be edited in GoRules BRMS

Solution

This warehouse optimization system assigns ideal storage locations for products based on multiple key factors to improve operational efficiency. The system first classifies products using monthly sales volume, turnover rates, and daily picking frequency to identify high-priority items that require strategic placement. Products are then assigned specific storage locations - from floor-level spaces to pallet racks or bin shelving - based on their classification and handling requirements.

Fast-moving products with high volume are positioned in prime picking areas for quick access, while slower-moving items are stored in standard or overflow zones. The system factors in product fragility when determining vertical placement, keeping delicate items at lower heights for safer handling. Each assignment includes a priority score that helps warehouse managers plan optimal layouts, alongside specific replenishment schedules tailored to each product's turnover rate - creating a balanced approach that reduces picking times while maximizing space utilization.

How it works

The decision graph processes product data through three sequential steps:

  1. Product Classification: Analyzes monthly units, turnover rate, and picks per day to categorize products into high-volume, medium-volume, low-volume-fast, or low-volume-standard groups, adding a fast-moving indicator for quick-rotating inventory.

  2. Location Assignment: Determines the optimal storage type (floor-level, pallet rack positions, or bin shelving) and warehouse zone (prime picking, standard, or overflow) based on volume category, movement speed, and fragility score.

  3. Allocation Finalization: Generates the exact storage location code, calculates a picking efficiency score, recommends optimal quantity to store, and establishes a replenishment frequency (daily, weekly, or monthly) based on turnover rate.

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