Applying Pareto in the Warehouse
The following table show how Pareto techniques may be useful when classifying the materials in the Warehouse, according to the amount of movements.
|Product_code Annual demand Picking frequency Weighted volume % weighted||% weighted (cumulated)||ABC Category|
Products or references classified as A are the ones that may be prioritised in the warehouse, as those products are the ones that have a bigger rotation (we shall locate those products closer to the pickup area), whilst C products shall be located in an passive area of the warehouse (and stored palletised or in containers, as they won’t have much demand along the year).
Considering the example, proceed to calculate the ABC category of the references of a car spare distributor. The data is located in ecampus in a spreadsheet named 2021-LogisticsPareto-Data.
You will have to upload the spreadsheet document with the classification of the items.