Warehouse rationalization means reach warehouse function with most economical way.
The core is save cost when maximum warehouse function. This is a question between investment and output.
1. Symbol of warehouse rationalization
1) quality symbol. Ensure the quality of cargo is first requirement of storage function. Only under this the cargo value could make effect after flow. Ensure quality is the precondition of added value or added time.
2)Qty Symbol: Under the precondition of ensure function, it require a reasonable quantity range. Which means control the loss
3). Time Symbol: this means require a reasonable storage time.
4) Cost Symbol. We should consider rent, maintenance cost, storage cost, interest rate. This can help us to evaluate when it’s worth
Requirement of storage rationalization:
General speaking, there are several points you should take care for storage rationalization:
1. With suitable inventory.
2. Use effect first in first out rule, make sure the storage time of each cargo won’t be long.
3. Reduce the investment of storage facility, increase the turn over rate
4. use effective pallet racking and storage racking system, with accurate position system like RFID
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