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Location of logistics system optimization management

Traditional warehouse management often put the goods when the goods arrived the closest available space or consider dynamic changes in patterns of demand and changing customer needs, followed years of habit and experience to place items. Layout of traditional goods resulting processes are slow, inefficient and inadequate space utilization. However, especially in modern logistics under supply chain management model of new target is: use the same labour costs or to do more work using value-added services by cash-intensive warehouse transformed into a labour-intensive industry; reducing fulfillment time, provide faster and more attentive service.
Warehouse key performance indicators (Warehouse Key Performance Indicator), productivity, delivering precision, inventory, warehousing, fulfillment time and optimum management of storage density is the location of the target. Location management is used to identify each of the specifications of the appropriate storage, in the appropriate storage space storage allocation. Shelf optimization features of different equipment and shelf management, commodity groups, location plans, built-in labor cost and other factors in order to achieve optimal shelf layout, can effectively control commodity changes to maximize cost savings. Location management for warehouse efficiency and operating costs, as well as in the construction of a distribution center or warehouse preparation before operation of key management.
Inventory management principles
Goods location optimization is difficult to model in digital formulas and figures to describe, often using some rules or guidelines for non-process operations. Rules in calculating convergence to the target data in to a binding role. Most rules are universal, even an ordinary warehouse will not allow merchandise, randomly or without planning and placement. Different distribution center or warehouse or according to their own characteristics and special properties of goods for several special rules. For example support retail drug distribution centers will be kept separate from similar drugs to reduce the error of picking opportunities, store non-drug classes are categorized by product family when put together.

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