Shelf Openings and SKU Management
The number of SKUs stored per tier determines total SKUs held in medium-duty shelving. Because opening widths do not need to be uniform, combining small-volume SKUs with large-volume items raises fill rates, optimizing SKU management.
Target SKUs are stored split across two locations: "Reserve Storage Area" and "Outbound Work Area (Medium-Duty Shelving)".
For 1,000 target SKUs (medium/low-velocity items):
Total Center Days of Inventory = 40 days; Total Center Inventory Volume = 100 m³
Shelving Usable Volume = 50 m³; Fill Rate = 70%
Shelving Net Storage Volume = 35 m³
Days of Inventory in Shelving = (35 m³ / 100 m³) * 40 days = 14 days.
Results in 26 days in reserve storage and 14 days in outbound work area.
Considering replenishment labor from reserve storage, days of inventory in the outbound work area (medium-duty shelving) should ideally maintain 20 days or more.
How are SKU counts distributed between reserve storage and active work areas during above calculations?
Work Area SKUs = 1,000 SKUs
Reserve Area SKUs = 790 SKUs
Reserve Area SKU Reduction = (Shelving Days of Inventory / Ideal Days of Inventory) * Total SKUs * 0.6
Reduction Count = (14 / 20) * 1,000 * 0.6 = 210 SKUs.
This represents an empirical calculation model.
While selective pallet racks and automated warehouses exceeding 3,000 mm height require 200 mm setback clearances, flow racks and medium-duty shelving under 3,000 mm height require only 100 mm setback clearance.