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Storage Bin Capacity Over Utilization

Nov 22, 2017 at 08:01 AM


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Dear Experts,

We intend to enable Storage Bin Capacity Check 4 : Usage check based on material. We have tested all scenarios with mixed storage and addition to existing stock with put-away strategy as Manual stock placement.

The user has put a new requirement that the system should allow placement of material in a bin even though the capacity utilization is already 100%. Currently the warehouse is already being utilized at 150% without capacity check enabled. and the user intends to report the same through system to the management.

Please advise.

Thank you


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4 Answers

Best Answer
Jürgen L
Nov 22, 2017 at 12:19 PM

Try the same with a glass of water.

You either check capacity and have a hard stop on the real capacity,

or you maintain your capacity with a value that corresponds to a 150%

or you just don't do any capacity check.

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Nailed it!!!

As a consultant I agree to your views in principle. However, since the user requires to capture the over stocking, how do we do it. Operationally, the user is placing the material beyond the capacity and physical material is placed on the walking isles.

The material in the system is updated in bin closest to the walkway.

How would this be catered in the system. One possible solution is that the isle be marked as a bin as well and a capacity be assigned to it.

Your take.

Jürgen L
Nov 23, 2017 at 07:19 AM

A consultant should consult, and this does not mean he is a fairy who fulfills any wish.

A consultant is an expert who knows the constraints of the system, can explain the pitfalls and disadvantages to the client

So it is actually your turn if you make overutilization a strategy, which means you maintain a higher capacity as I already proposed, and make the aisles a bin too as you just said or you eventually take the challenge and look for the root cause that makes over-utilization necessary.

Why did you make the capacity per bin so small as they are if they can accommodate 50% more.

Is the warehouse too small in general or do you only talk about peaks? is the planning inaccurate? Do you have to many slow movers and dead stock?

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Khurram Barakzai Nov 23, 2017 at 11:59 AM

While calculating the capacity of the warehouse, we came across two different capacities. Theoretical Capacity and Operational Capacity. which of the two should be maintained in the system in the bin capacity?

the Theoretical capacity includes the isles and the dead space that cannot be utilized due to safely reasons and material stacking limitations. however, the operational capacity can be overrun and should be captured in the system. These over utilization should be captured in the system and the utilization should show that the space is over occupied.

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Khurram Barakzai Nov 28, 2017 at 05:26 AM

Thank you for your response. Problem addressed.

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