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From the Golden Zone

In this month’s edition of Distribution Center Management, Geoff Sisko of Gross and Associates penned an article titled: “From the Golden Zone: Finding the balance between throughput and capacity is the key to good facility design.”

The key to good facility design is balancing the frequently incompatible requirements of throughput and capacity. Increasing dock space, for example, will allow for more goods to flow through the facility, but it does so at a cost of storage space, which adversely impacts capacity. You must strike a compromise between these factors to optimize design in many areas of the operation, including dock space, building clear height, aisle width, number of cross-aisles, rack opening sizes, storage depth, and processing space. Productivity generally benefits if the majority of activity can take place at the floor level, while the use of a building’s height will generally increase the storage capacity. How do you find that balance? Some areas to consider are: Building Clear Height, Aisle Width, Cross-Aisles, Rack Openings, and Depth of Storage.

The article details the trade-offs required in these areas, as well as some practical solutions to meeting your throughput and capacity needs.  Read the full article by clicking on this link (caution: PDF) or access DCM’s featured articles at this link.

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    #9   Close out the merchandise. In many trade lines there are companies that specialize in buying close-out merchandise. They may resell by mail order, through off price stores or as 'special purchases'in full price stores. Look in trade journals, The Wall Street Journal and local newspapers to find who handles your class of product. Sometimes your present customers may be interested in a one time deal to use as a promotion. Do not overlook your employees as close-out customers. With luck, you may even find another outlet for your regular merchandise. You can use close-outs to sell raw material as well as finished goods.
    #45   Use computer directed putaway. If the inbound material does not require elaborate checking in procedures and a computer can assign empty locations for each pallet, the material can be put away directly into storage eliminating the need for receiving staging space. If the receipt contains less than full unit storage quantities, the computer can locate a partially filled location of the same product and direct the putaway to fill the location.
    #4   Sell to present users. Use your sales or warranty history to find the people who have bought the product. Let them know that you have more available for immediate delivery. Consider telling them that you are discontinuing the product and closing out the remaining inventory. Offer a discount because they are loyal customers. Offer owners of older versions the chance to upgrade at low cost.