In this article, you'll learn:
 

• How to measure your warehouse's usable and storage capacity.
• The process for calculating your inventory cube size and utilization rate.
• Why a 15% utilization rate is generally acceptable.
• The impact of warehouse design on storage efficiency and labor costs.

Most warehouse managers report that their biggest problem is that they do not have enough space. Yet, many warehouses operate with just 20 percent of their space being used at any time. Furthermore, some warehouses that have higher utilization rates end up with higher costs due to the negative impacts of high utilization on employee productivity.