Warehouse Strategies

What are Warehouse Strategies?

Anyone who operates a warehouse has to take into account the optimal supply availability. In addition, he must ensure that the warehousing costs are as low as possible.

Warehousing strategies can help in this respect, as they are decision rules that determine the order quantities, the optimal stock and the order times, taking into account all internal and external conditions. They have the task of ensuring optimum readiness for delivery - while minimising warehousing and shortage costs at the same time.

A distinction is made between ordering rhythm, order point and control rhythm procedures. In the case of the ordering rhythm procedures, the stock is replenished at constant time intervals. In the order point procedures, orders are always placed when the reorder level is reached or undercut. In the control cycle procedures, the stock level is checked at constant time intervals. The aim of stock-keeping strategies is to optimise the service level of the stock, to minimise costs and to reduce the stock level.