Question

Why can high space utilization not be guaranteed simply by storing product in sufficiently deep lanes?

Answer 1

Optimum space utilisation involves a combination of techniques to find right balance between storage density and storage utilisation. The deep lanes, though increase the density of space storage, but at the same time, the densly packed deep lanes hinder the movement of goods in and out of the pallets, thereby affecting storage utilisation negatively. The optimum value of utilisation that is the effective utilisation is the product of storage density ( total storage area in cubic feet / total area of warehouse) and storage utilisation ( average no. of locations utilised / avg no. of locations committed).

Thus, in short, deep lanes filled by the goods can improve space utilisation only when it does not affect the movement of goods and thereby storage utilisation.