The TOT warehouse operates using the philosophy random location storage
This topic describes this philosophy and why TOT uses it
With random location storage, a SKU (Stock Keeping Unit) may be located in any available storage location so long as its location is accurately recorded. During one time period, a given SKU may be stored in one location, while at some later stage; that same SKU may be allocated a different storage location. The flexibility of this method means a specific SKU may be stored in multiple locations at the same time.
ADVANTAGES |
DISADVANTAGES |
Excellent space utilisation |
Possible multiple pickings |
Easy to expand |
Requires formal stock system to exist |
Provides maximum flexibility whilst still allowing control over where SKUs can be found |
Constant updating of information is necessary to track where each SKU is at any given time |
The random stock location method is a flexible system allowing the most efficient use of space.
Contrast this to fixed stock location method outlined below.
This is an organised method of storage that places a product in a specific, pre-defined location that does not change. Fixed location storage dictates that a given stock-keeping unit (SKU) must always be stored in its assigned space even if there is available storage space elsewhere in the warehouse. This method has the advantage of making items easy to find, but it is not always the most space-efficient method of storage.
Example of Fixed Stock Location = Retail outlet
ADVANTAGES |
DISADVANTAGES |
Easy to establish |
Poor space utilisation |
Single picking location |
Does not facilitate a simple solution when the mass of the stock held is greater than the available space |
Immediate knowledge of where SKUs are located |
No flexibility |
No need to record stock location |
Difficult to expand |
Random stock methodology is the best option for TOT, as it provides us with over where stock the best use of space and maximum flexibility, whilst still allowing control can be found.