Storage and Warehouse Techniques

Running head: STORAGE AND WAREHOUSE TECHNIQUES 1
Storage and Warehouse Techniques
Name
Institution

STORAGE AND WAREHOUSE TECHNIQUES 2
Location of the warehouse
The location of the warehouse is located close to other retailers which makes operations
to be handled in a short period of time. The location of Jim Olsens plays a crucial role in
determining the time for making deliveries to the consumers. As a logistic manager, it is equally
significant to consider building and leasing the warehouse for purposes of factoring sustainable
options. Another vital factor with respect to location of the warehouse is the requirements needed
for storage of the products (Atieh et al, 2016).
The potential sources of cost with respect to location of Jim Olsens warehouse is
attributed to distance between the warehouse and consumers. For instance, if the distance
between the consumers and the warehouse is big, it will cost the company more to get products
to the consumers. Another cost is linked to proximity to carrier companies, Jim Olsens
warehouse should therefore be located close to carrier services to streamline operations. Another
source of cost is storage requirements which influence the cost of construction. Other sources
include workforce availability and sustainability cost (Davies, 2019).
The KPI that is applicable in Jim Olsens scenario with respect to location is cost of
carrying the inventory. This involves all the cost that will be associated in storing products over a
period of time. This measurement primarily focuses on the various cost associated to warehouse
location. Among these costs include labor cost, insurance cost, carrier cost and risk associated
costs. This performance measure will determine profitability as well as facilitate finding new
ways of managing carrying cost.
Layout of the warehouse

STORAGE AND WAREHOUSE TECHNIQUES 3
The layout of Jim Olsens warehouse is categorized into three distinct zones. These zones
represent the stock owned by the three collaborating business. The three classification include
paint shop goods, grocery store goods and tiles goods. Also, the three businesses are in close
proximity to each other. However, the paint shop occupies 20 percent, grocery occupies 40
percent and tiles of occupy 40 percent. The activities in the warehouse include unloading,
storage, picking and loading of goods.
Image: Jim Olsen Storage and shop schematic (Nelson Marlborough institute of technology,
n.d.).
The potential sources of cost with respect to layout include partition cost for Jim’s
enclosed store since the warehouse is used between three entities. Besides, Jim and the two

STORAGE AND WAREHOUSE TECHNIQUES 4
parties incur handling cost for storage space. Another cost that is associated to layout is handling
cost from trucks to specific warehouse. Furthermore, other associated cost with layout of the
warehouse is loading and picking items that are handled in the store (Hollis, 2017). In addition,
the three collaborators in the warehouse incur maintenance cost for the warehouse.
The key performance indicator that is applicable to measure the performance of
warehouse layout is receiving efficiency. Receiving efficiency is an important performance
indication that is centered on measuring the efficiency with which products are received and
handled in the warehouse. Therefore, the layout of the warehouse should be structured by
considering the time and manner in how products are going to be handled (Richards, 2017). A
lean warehouse management is considered to be effective in reducing time and activities that
take place within the warehouse.
Location numbering system
The warehouse relies on traditional stock labelling and knowledge of where things are
located (Alyahya, Wang & Bennett, 2016). Jim Olsens warehouse does not have partitions
except for the enclosed space for storing paints among other flammable liquids. Although the
warehouse is not partitioned, it is divided into three sections. The first section is the automotive
paint that contains enamel paints, sand papers, masking tape, spray guns, overall and gloves. The
second section is the grocery store that houses bulk food products and non-perishable food while
the third section contains ceramic tiles among other tiling equipment. The pain and the tiles have
three storage racks on the opposite site while grocery has three racks and one shared between the
tiles and the grocery.