The storage zone and the cube-per-order index
A storage zone describes a defined zoning (division) within a warehouse. It is usually based on the respective allocation strategies of a warehouse and has different characteristics and reasons. A storage zone is divided into so-called storage bins, where goods are available on pallets or shelves.
The division of a warehouse into different zones is often found in picking warehouses. In most cases, it makes it easier for the operator to organize a warehouse or distribution center. Zones can be divided up according to customer or assembly group, country or company, turnover rate, dimensions and value of the stored goods. Also not uncommon: temperature zones and the securing of stored goods against theft.
A storage zone can be permanently assigned or designed to be variable. Planners usually use the ABC analysis for this. On the one hand, it is used to determine the value of items, and on the other hand, it can be used to determine the turnover rate of so-called fast and slow movers. Subsequently, the respective storage zones are defined in such a way that the placement of the goods supports the business and technical processes. For example, long picking distances are avoided for fast movers and the goods are placed close to the picking zone.
Cube-per-Order-Index (CIO) and the storage zone
The Warehouse Management system or storage location management often receives helpful support for the optimal allocation of storage locations for items via the cube-per-order index (CIO). This key figure relates the volume requirements of an item to its access frequency. Other factors include size, weight and type of packaging. The CIO is based on two fundamental requirements for the allocation of storage locations:
- items that are accessed frequently should be stored close to the picking zone.
- Items with a low volume requirement should also be stored close to the picking zone.
Or to put it another way: a high cube-per-order index indicates that the item does not necessarily have to be placed near the picking zone. If the CIO is low, the goods are stored near the picking zone.
Rainer Bernnat, Strategies for Storage Bin Allocation, Rationalization Potential in Picking Warehouses, page 96, ISBN 978-3-8244-6677-1
For more information on storage bin management, see also ‘Fixed vs. dynamic storage bin allocation‘ and allocation strategy – storage bin adjustment.
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