Most productivity improvement programs concentrate on improving utilization of labor. Yet there are four other major cost areas in warehousing where making better use of assets can boost productivity. These four are space, energy, equipment and inventory.
KeywordsInventory Performance Inventory Level Performance Measurement System Market Publication Order Picking
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- 1.The next six sections are adapted from “A Program for Lift Truck Utilization/Maintenance” by Todd Benton and Albert D. Creel of Distribution Centers Inc., Columbus, OH. Published in Warehousing and Physical Distribution Productivity Report, Vol. 17, No. 12. Marketing Publications, Inc., Silver Spring, MD.Google Scholar
- 2.The remainder of the chapter is from an article by John A. Tetz, Coopers & Lybrand, Columbus, OH. Published in Warehousing and Physical Distribution Productivity Report, Vol. 17, No. 11. Marketing Publications Inc., Silver Spring, MD.Google Scholar
- 3.Vilfredo Pareto (1842–1923) was an Italian philosopher who determined that income distribution patterns were basically the same in different countries. That is, a small percentage of the population had the majority of the income. Translated more broadly, a relatively small number of items account for a large proportion of the activity. This phenomenon is one of the most applicable and effective, yet least used, of the basic principles of inventory management.Google Scholar