Logistics

2.

When it comes to the movement and storage of resources there are several key areas that have to be taken into account when make decision relating to distribution and storage methods. These two areas have a direct impact on the ability move material through a distribution system in a seamless and efficient manner and as a result have a direct impact on the cost related to maintain and shipping inventory. It for this reason that these decisions are among some of the most important ones that can be made when developing your supply chain.

Load Utilization and Space Layout are two components of storage and distributions that are often left out when make decisions related to their areas. Key to understanding them is an accurate understand of what these two aspects of distribution bring to the table and how they impact operations. Load Utilization is a key determining factor on the efficiency of throughput in your operations. What it accomplishes is an efficient use of space when it comes to transporting material from one point to another. By taking it into account you can effectively more goods with less trips ultimately driving down material handling cost by minimizing equipment and transportation space. Space Layout provides a very similar effect to material handling. Space layout when done correctly provides ample opportunity for a company to maximizing the storage capacity of a facility, as well as efficient navigation if the spaces in the space which has a direct impact on operations. A space that is correctly planned and laid out allows for a reduction in material handling cost as it would impact fixed cost directly when it comes to the reducing amount of space that must be utilized and the labor cost associated with operating within that space.

Related to space layout are two other equally important concerns with relation to material handling. These two concerns are storage and movement equipment choices. The effects of these two elements on material...