Storage Location Systems
Storage Location Systems
- Storage location strategies organise stock in a storage system, and have a considerable impact upon storage system performance.
- There are two main stock location systems:
- dedicated location (or fixed slot) storage system
- randomised location (or floating slot) storage system.
Random Location Storage System
- This is a storage technique in which parts are placed in any space that is available (empty) when they arrive in the store room.
- This strategy places items in the closest available slot, bin or rack.
- Products are then retrieved on a first-in, first-out (FIFO) basis.
- This approach maximises space utilisation, although it requires longer travel times between order-picking locations.
- Randomised systems often employ a computerised automatic storage and retrieval systems (AS/RS), which minimises labour and handling costs.
- Although this random method requires the use of a locator file to identify parts location, it often requires less storage space than the fixed location method. This location method is applicable where:
- The stores system is computerised.
- Fast moving items are stored.
- There is need to maximise space usage.
- The random location storage method is typically preferred, because it provides a higher utilisation of empty locations.
Dedicated Location Storage System
- This is a method of storage in which a relatively permanent location is assigned for the storage of each item in the store room or warehouse.
- This can simply be described as a stock location system where the same item is put in the same location every time.
- The system works on the principle: A Place for Everything and Everything in its Place.
- Stores personnel will quickly and easily become familiar with the system because a pattern has been established
- Items of a similar nature might be stored in close proximity. This facilitates handling, security, health and safety
- Items can be stores in such a way as to minimize handling & reduce pick time
- It is improper for high demand items
- More space is required thus long movements
- The decision to use either fixed or random stock location systems depends on:
- Type of goods stocked
- Type of storage facility needed.
- Size of orders
Other Storage Strategies
- The popularity criterion locates popular items near the shipping area and the unpopular items always from the shipping. By this method, the order pickers travel a shorter distance to pick the most popular items being ordered, thereby reducing the time required to pick orders.
- The unit size criterion that small-size items be located near the shipping area and larger-size items be placed father away from the shipping area. By locating smaller-size items near the shipping area, more items can be stored near the shipping area, which reduces the order picker travel distance and order-picking time.
- The cube criterion is a variation of unit size in that the items with smaller total cube space requirements are located near the shipping area.
- Compatibility refers to how well products may be stored together. For example, pharmaceuticals cannot be stored with bagged agricultural chemicals.
- Complementarity refers to how often products are ordered together and therefore stored together. Computer disk drives, CD-ROMs, and monitors; pens and pencils; and desks and chairs are examples of complementarity products that usually stored close to each order.