What is a bearing codes?
Warehouse ratios can be used to make statements about the profitability of warehousing. The objective values of your own company are compared with industry values or with your own figures from the past. Warehouse ratios thus ensure transparency. They provide the basis for business decisions.
Typical warehouse indicators include:
- the average storage period
- the storage cost rate
- the storage range
- the inventory turnover rate or
- the storage utilisation rate
Inventory turnover rate
Average storage duration
Storage cost rate
Storage range
The stock range indicator provides information about the security of supply. The key figure indicates how long the average daily orders for a particular item can be fulfilled with the current stock level.
The formula for calculating the stock range in days is
Stock level / average demand per day
Degree of stock utilisation
The warehouse utilisation rate provides information on what proportion of the available warehouse capacity is currently being used. In practice, a warehouse utilisation rate of 80 percent is aimed for. With this value, there is still space for larger storage units. On the other hand, the vacancy rate is so low that the storage costs are at an economically justifiable level. A higher vacancy rate would increase storage costs enormously.
The formula for calculating the storage utilisation rate is
Used storage locations / sum of all storage locations x 100
