These three factors bring you to Topic 4.1 at the previous page, i.e. not all products are suitable for all types of warehouses. The types of product depend on the type of customer, e.g. customer will only opt for warehouse that is able and capable to store product A if the customer's need is based on product A. How big or how small a warehouse should be also depend on its business need, capability and efficacy, i.e. the type of warehouse operations.
The considerations linked to the storage of products are:
Physical features: volume, weight, packing (loose or in cartons)
Demand patterns: average level, volatility, seasonality, maximum, minimum
Number of products: many, few, single
The considerations linked to customers’ needs are:
Lead times: supplier lead times, customer lead times, transport mode
Customer service level: quick response, just-in-time, lowest cost
Special storage conditions: climate control, packaging
The considerations linked to warehouse operations are:
Layout and Facilities: racking, damage control area, office, sanitation
Material Handling Equipment (MHE): storage systems, handling equipment, manual or automated
Economies of Scale: Bigger warehouse can enjoy economies of scale
Planning
Designing
Implementing