Memory advantages: simple to understand Little paper work Maximum utilization of space
Disadvantages:
Dependent on particular individual Lost items may be lost to the whole system Accuracy may decrease if conditions are not ideal.
Memory Systems will work best when: Storage locations are limited in size and number One or very few individuals work in the storage area Workers have no other duties beside the storage area There is not a lot of stock movement Inventory does not radically change within a short period of time fixed location systems;
Every item has a home and nothing else can live there (pure system) Require large space because of
-honeycombing (unutilized storage space) -planning around the largest quantities that may be at the facilities at one time
Honeycombing causes
Product Shape Products not stacked well Location system rules Poor housekeeping
Vertical or horizontal honeycombing
Pros-Fixed Location Systems:
Immediate knowledge of where items are located Training time of new hires is reduced Simplifies receiving and stock replenishment
Allows for strong control of individual lots( make it easier to use fifo or lifo)Allows sku’s to be placed sequentially
Allows products to be placed close to point-of-use. Allows better planning for sku size, weight, physical nature etc.
Cons-fixed location system
Contribute to honeycombing Require maximum space based on total cubic volume of all products
Inflexible especially in sequentially arranged storage situations
Zoning System
Items with same characteristics are assigned a particular area, based on weight, size, shape, chemical characteristics, etc.
Pros-Zoning System
Allows for adding new sku and removing others from a zone more easily Allow for moving SKUs more easily from one zone to another or creating new zone. Allows for better planning since things are not fixed. Easy system to learn
Cons
Require more frequent updating of stock movement information May contribute to honeycombing Not known for efficient product handling
Random Location Systems