An innovative approach for optimizing warehouse capacity utilization

The optimal utilization of storage capacity is a key issue for companies with undersized warehouses, especially in situations where storage areas are expensive (i.e. warehouses with refrigeration systems). Since package size influences storage area design, in this paper an approach for jointly configuring secondary packages, pallets and storage racks is introduced. In particular, the multi-item model version of the problem is studied. Three alternative storage policies are explored: random, class-based, and dedicated locations. Finally, a case study highlights the relevance of the proposed methodology to real-life situations.