Storage Principles

The storage system in warehouse has important bearings on the total cost and success of warehous­ing operations. Firms give more importance to the way the inventories are handled rather than how they are stored. Invariably in industry, investment planning is done more for handling equipment rather than the storage system (Figure 6.2).

In fact, efficient use of the material handling equipment is possible provided the storage system allows easy access for storage and retrieval of the inventory. A well-designed storage system is a com­promise between maximum utilization of the available space and need for easy and quick access to the stored goods. In general, the following rules are followed for designing an effective storage system:

• Minimize the travel distance
• Maximize the utilization of available space
• Provide easy and quick access to the stored goods
• Facilitate easy tracking of the material
• Provide security against fire, damage and theft
• Prevent contamination and deterioration of the goods

The criteria for selecting the storage system for a particular application depends on the follow­ing factors:

1. Product Characteristics

The products with contamination risk require such storage facility, which will isolate them from other product groups. For example, flowers pose great risk of odour contamination. Similarly, hazardous chemicals pose risk of damage to other products or human life. Hence, design consider­ation for these types of products needs special attention.

2. Configuration

The products with uniformity in shape and size may be stored in stacks or put in the enclosure, while odd-shaped products may require open space. For example, steel sheets, billets, rods, angles, pipes etc are stored in open in the steel yard.

3. Shelf Life

The storage system designed on first-in-first-out (FIFO) consideration.

4. Product Variety

The system needs to segregate the products for ease in identification during storage and retrieval.

Source: Sople V.V (2013), Logistics Management, Pearson Education India; Third edition.