5.1.2 Warehouse design
Whatever method you choose, consideration of warehouse design is essential. The five interrelated factors which need to be considered when designing a warehouse or renting an existing warehouse are:
- land and building
- management and staff
- storage and handling equipment
- computer and software
- operating methods and procedures
Each of these factors must be considered in a systems and total cost approach, for each has the ability to affect the others (Bloomberg, Murray & Hanna 1998).In countries like Australia, where land costs are not high, single storey warehouses are preferred because they allow for straight line flow of products. In countries like Japan , Singapore and Hong Kong , where land costs are exorbitant, multi-storey storage facilities are very common. Prior to designing a warehouse, the material handling system should be selected so that the storage facilities are designed around it. Also, the entire cubic space of the warehouse should be fully utilised.
Reading 5.1
Kum, KY (2000), 'Managing a single warehouse, multiplier retailer distribution center', Journal of Business Logistics, vol. 21, no.2,
pp. 161-172.