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Warehouse Cost Measure

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  • #52287

    black belt
    Participant

    I have a current project looking at freeing up warehouse space. There are a few measures around for this which is the best to use?
    Someone said I could even count the work that would have replaced the space every stock turn previously used?

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    #183785

    Torrance
    Participant

    Black Belt, my opinion would be to keep the
    measures real. The more calculation you have to do,
    the less tangible the benefits tend to become (in
    general).The answer(s) may be to question why you have been
    asked to free up space. I would expect that there
    is some kind of reason or benefit behind that.If the plan is to be able to handle additional
    stock for storage, then you could look at what
    additional revenue that will bring – in terms of
    handling fees and storage fees.Is the warehouse owned by your company, or do you
    rent space from another company…this might also
    give you ideas on what can be saved in terms of
    cost.Other than direct cost benefits, will the project
    help your inventory accuracy, your lead-time for
    stocking/pulling…?Davy T

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