Warehouse space utilization refers to how efficiently you’re making use of your entire warehouse. Start off by calculating the total size of your warehouse and subtract any space you use for things like bathrooms, offices, meeting rooms, and the like. That’s because you only want to take into account the total space available to you for inventory purposes.
For example, let’s say you figured out that you have 60,000 square feet of available space.
Proceed to multiply this number by the warehouse space clear height to determine the overall storage capacity. Once that’s done, you will still need to calculate your inventory cube size to determine the overall level of warehouse space utilization. Add up the volume of all the products that are stored in your warehouse and divide it by the total warehouse space store capacity. This will be your final warehouse space utilization number.
The warehouse space utilization formula can be spelled out like this:
(Total Inventory Space x Warehouse Space Clear Height) / (Overall Volume of All Inventory)
This will look like:
(Total Inventory Space x Warehouse Space Clear Height) Overall Volume of All Inventory
See Related – Warehouse Simulation Software