Warehousing, Storage and Order-Fulfilment Design

Introduction

A warehouse is not merely a place in which inventory is stored. It is an engineered service system that receives materials, identifies and protects them, makes them available for order fulfilment, consolidates shipments, and supports information flows between suppliers, production, customers and carriers. Its design directly affects lead time, labour productivity, inventory accuracy, safety, customer service and total logistics cost.

Warehouse design is therefore a facilities-layout problem with distinctive characteristics. Demand is variable, product dimensions differ, storage may be temporary or long term, and material-handling decisions interact with information technology, labour systems and transport schedules. A good design balances space, accessibility, travel distance, throughput, flexibility and capital cost rather than maximising any single measure.

This chapter examines the design of receiving, storage, picking, packing, cross-docking and dispatch areas. It also develops methods for slotting, storage-policy selection, capacity analysis, space utilisation, throughput measurement and comparison of layout alternatives.

Learning objectives

After studying this chapter, the reader should be able to:

1. Explain the role and operating logic of a modern warehouse.
2. Plan receiving, put-away, storage, picking, packing and dispatch areas.
3. Select appropriate storage policies and slot products using demand and handling characteristics.
4. Calculate basic capacity, space-utilisation, throughput and labour measures.
5. Compare functional, flow-through, cross-docking and automated layout alternatives.
6. Evaluate warehouse designs using service, cost, safety, resilience and sustainability criteria.

1. The warehouse as an integrated system

The principal warehouse functions are:

• Receiving: unloading, checking, counting, documenting and directing inbound goods.
• Put-away: moving goods from receiving to an assigned storage or forward-pick location.
• Storage: holding inventory under suitable environmental, security and accessibility conditions.
• Replenishment: transferring stock from reserve storage to picking locations.
• Order picking: retrieving items required for customer, production or transfer orders.
• Sortation and consolidation: combining order lines or shipments into complete consignments.
• Packing and labelling: protecting goods and preparing transport documentation.
• Dispatch: staging, loading and confirming outbound shipments.
• Returns and value-added services: inspection, repair, relabelling, kitting or repackaging.

These activities form a system. Enlarging storage without considering picking travel may increase capacity while reducing service. Increasing dock doors without improving appointment scheduling may create congestion rather than throughput. Consequently, layout decisions must be based on the complete process and on the dominant flow of material.

A useful distinction is between inventory storage and material flow. Storage creates availability and decouples supply from demand; flow creates responsiveness. Products with high demand frequency generally require high accessibility, whereas products with low demand frequency can be placed farther from the main travel aisles or in denser storage.

2. Design requirements and operating profiles

A warehouse design begins with an operating profile. The profile should include:

• product dimensions, mass, unit loads and handling restrictions;
• annual and peak receipts and dispatches;
• order-line frequency, order size and demand variability;
• inbound and outbound vehicle types and arrival patterns;
• inventory levels and replenishment policies;
• required service time and cut-off times;
• labour availability, skill and shift pattern;
• regulatory, environmental, security and quality requirements;
• current and expected future technology.

Average demand is not sufficient. Peak-day and peak-hour volumes determine docks, staging space, labour and equipment requirements. A design based only on annual averages can fail during promotions, seasonal peaks or supplier disruptions.

2.1 Process mapping

A process map should identify physical movement, decision points, information transactions and queues. Typical questions include:

• Is inbound material inspected before it enters storage?
• Can received goods be allocated directly to an open customer order?
• Are picking and replenishment performed simultaneously?
• Where are exceptions, damaged goods and returns isolated?
• Does the dispatch sequence correspond to the carrier route sequence?

The map should distinguish value-adding handling from avoidable movement, double handling, waiting and searching. Travel distance is often a symptom of poor slotting or poor layout rather than an unavoidable operating cost.

2.2 Core terminology

A storage location is a physically defined position for inventory. A slot is a location assigned to a specific product or product family. Reserve storage holds inventory in larger quantities; forward pick storage contains accessible stock for routine order picking. A pick face is the accessible presentation area from which a picker retrieves stock. Staging is temporary holding before loading, unloading or a process hand-off. Dock-to-stock time is the elapsed time from receipt at the dock until inventory is available for use or sale. Order cycle time is the elapsed time between order release and order readiness or dispatch, according to the organisation’s definition.

3. Warehouse layout alternatives

3.1 U-shaped flow

In a U-shaped layout, receiving and dispatch docks are on the same side of the building. Goods enter, move through receiving and storage or picking, and return to the dispatch side. This arrangement can share dock equipment, security and yard resources. It is useful where inbound and outbound volumes vary independently. Its weakness is potential congestion and cross-traffic near the dock face.

3.2 Through-flow layout

In a through-flow or I-shaped layout, receiving is at one end and dispatch at the opposite end. This supports a simple directional flow and is suitable for high-volume operations with stable product movement. It may require greater building frontage and can reduce flexibility if the balance between inbound and outbound activity changes.

3.3 L-shaped and hybrid layouts

An L-shaped layout separates receiving and dispatch along adjacent sides. It can suit constrained sites and provide partial separation of inbound and outbound traffic. Hybrid layouts combine zones: for example, cross-dock lanes near the inbound and outbound docks, reserve storage in the rear, and a forward-pick module close to packing.

3.4 Functional zoning

Common zones include receiving, quarantine and inspection, reserve storage, forward picking, replenishment staging, value-added processing, packing, sortation, outbound staging, returns and maintenance. Fire exits, pedestrian routes, battery charging, waste handling and emergency access must be integrated rather than added after the layout is completed.

A practical design principle is to place frequently interacting zones close together while preventing conflicting flows. For example, packing should be near picking and dispatch, but pedestrian access should not cross forklift aisles unnecessarily.

4. Capacity and space planning

Warehouse capacity should be expressed in the unit that governs the operation: pallet positions, cartons, totes, cubic metres, roll cages, bins or order lines. A nominal floor area is not equivalent to usable capacity because aisles, columns, docks, offices, safety clearances and access requirements consume space.

If the required inventory capacity is Q unit loads and the usable storage positions per square metre are p, the required storage area is:

where A_s is storage area in square metres, Q is the number of required unit-load positions, and p is storage-position density in positions per square metre. This is a planning approximation; it assumes comparable unit loads and includes only the area represented by the density factor. Aisle geometry, columns and access constraints must be checked separately.

For a rectangular storage block with length L and width W, gross floor area is:

The space-utilisation ratio is commonly defined as:

where A_o is occupied or effectively used area and A_g is gross available area. Organisations must define “occupied” consistently. A high ratio is not automatically good: excessive density may increase travel, replenishment difficulty, damage and emergency risk.

For cube utilisation, an analogous measure is:

where V_i is inventory volume and V_b is usable building volume. This measure is especially relevant for high-bay storage, but it must account for clearances, rack geometry and load-height restrictions.

Worked example: storage capacity

An operation requires 4,800 pallet positions. The planned rack configuration provides 1.6 pallet positions per square metre of storage block. The estimated storage-block area is:

A_s = 4,800 ÷ 1.6 = 3,000 m²

If storage blocks represent 62% of gross warehouse area, the indicative gross area required for the complete warehouse is:

A_g = 3,000 ÷ 0.62 ≈ 4,839 m²

This is not a final building size. Receiving, dispatch peaks, offices, charging areas, fire separation, columns and future expansion must be validated with a scaled layout and time-based flow analysis.

5. Storage policies

A storage policy determines how products are assigned to locations. The principal policies are as follows.

Dedicated storage is appropriate for controlled environments, fixed-location retail replenishment or products requiring special segregation. Floating storage generally increases density but depends on location discipline, barcode or RFID identification, and a reliable warehouse-management system.

Storage policy must also consider FIFO (first in, first out), FEFO (first expired, first out), lot traceability, serial-number control, hazardous-material segregation, temperature zones and compatibility. FEFO is normally more appropriate than FIFO for dated products because the earliest expiry, rather than the earliest receipt, should be issued.

6. Slotting and replenishment design

Slotting assigns products to locations to reduce handling effort while preserving service and safety. A robust slotting analysis considers:

• demand frequency and pick-line frequency;
• cube, mass and ergonomic handling limits;
• replenishment frequency and reserve quantity;
• product affinity and order correlation;
• velocity variation and seasonality;
• value, security and damage sensitivity;
• temperature, hazard and compatibility constraints;
• travel distance and equipment requirements.

A common first classification is ABC analysis. If items are ranked by annual order-line demand, class A may contain the small number of SKUs responsible for a large share of activity, class B an intermediate share, and class C the remainder. The exact cut-offs are managerial conventions, not universal laws. ABC should not be based only on annual sales value when the objective is picking efficiency; order-line frequency, cube movement and handling effort may be more relevant.

A practical slotting priority can be represented conceptually as:

where F_i is pick frequency for SKU i, C_i is cube or space demand, T_i is travel impact, R_i is replenishment burden, and S_i represents safety or special-handling constraints. This is a decision model rather than a universal equation; the organisation must define the weighting and constraints.

Fast-moving, small and frequently co-ordered items are often placed in forward pick locations near packing. Heavy items should be stored between knee and shoulder height where manual handling is involved, or handled mechanically with suitable equipment. Bulky and slow-moving goods may be placed in reserve locations farther from the main pick path, provided access and safety remain acceptable.

Replenishment sizing

A forward pick face should hold enough stock to prevent frequent interruptions but not so much that space is wasted. If average demand during the replenishment interval is d units and safety stock is SS units, a simple target quantity is:

Here Q_f is the target forward-face quantity. The formula assumes d is measured over the same time interval as the replenishment cycle and that safety stock is expressed in identical units. More advanced policies may use order-up-to levels, minimum–maximum rules or probabilistic service-level calculations.

7. Receiving and put-away design

Receiving is a control point, not simply a dock. It should provide safe vehicle interface, unloading equipment, document capture, inspection space, discrepancy handling and rapid disposition. Appointment systems smooth arrivals; dock assignment can separate temperature-sensitive, hazardous, urgent or cross-dock loads.

Receiving areas require sufficient staging capacity for expected peaks. If inbound pallets arrive faster than they can be inspected and put away, a queue forms. The design should therefore evaluate both average and peak rates. A basic flow relationship is:

Units may be pallets per hour, cartons per hour or receipts per shift. The numerator and denominator must use consistent definitions and time periods.

Put-away should be directed by product rules and location availability rather than by operator preference. Immediate put-away reduces dock congestion, while directed cross-docking can bypass storage when demand and allocation are known. Quarantine space is essential where quality inspection, regulatory release or supplier discrepancies are possible.

8. Picking-system design

Picking often represents the largest share of warehouse labour. Selection of a picking method depends on order profile, SKU count, line density, product characteristics and required responsiveness.

• Discrete picking: one picker completes one order. It is simple and offers clear accountability but may involve repeated travel.
• Batch picking: a picker retrieves items for several orders in one trip, followed by sortation. It suits many small orders with overlapping SKUs.
• Zone picking: each picker works in a designated zone and orders move between zones or are consolidated. It reduces walking within large warehouses but introduces balancing and transfer issues.
• Wave picking: orders are released in planned groups according to carrier departure, priority or workload. It supports coordination but can create artificial peaks.
• Goods-to-person picking: automated storage and retrieval equipment presents inventory to an operator. It can reduce travel and improve ergonomic conditions, but requires capital, system reliability and suitable product profiles.

The dominant components of picker time are travel, search, extraction, checking and paperwork or system interaction. Pick-path design should minimise unnecessary backtracking and should respect one-way aisles, pedestrian safety and equipment turning radii. However, the shortest geometric route is not always the best route if it causes congestion or interferes with replenishment.

9. Packing, sortation and dispatch

Packing design must match product fragility, order composition, carrier requirements and sustainability objectives. A packing station commonly includes order verification, carton selection, dunnage, sealing, weighing, labelling and system confirmation. The station should be ergonomically designed so that frequently used materials are within the operator’s normal reach.

Packing capacity can be checked using station processing rate. If n identical stations each process r orders per hour, nominal capacity is:

This assumes stations are available simultaneously and that r is a sustainable rate, not a short-term maximum. If demand approaches C, variability and absenteeism may cause queues; practical design normally retains capacity margin.

Sortation may be manual, put-to-light, conveyor-based or automated. Outbound staging should be organised by route, carrier, departure time, temperature requirement and load sequence. Staging lanes must be clearly labelled and sized for peak accumulation, while preventing emergency exits and fire equipment from being obstructed.

10. Cross-docking

Cross-docking transfers goods from receiving to dispatch with little or no storage. It is effective when inbound timing, product identification, customer allocation and outbound schedules are coordinated. Typical applications include fast-moving retail products, promotional shipments, perishables and components required at a production line.

Cross-docking is not simply “no storage.” It replaces storage activity with scheduling, identification, consolidation and exception control. It is unsuitable when inbound quantities are uncertain, customer allocation is not known, outbound departures are infrequent, or inspection and conditioning require substantial time.

A cross-dock layout usually provides inbound doors, a central transfer or staging area, outbound lanes and clear product-to-destination identification. The design must control congestion, prevent product mixing and provide an exception zone for shortages, damage and documentation errors.

11. Performance measurement and operational control

Important warehouse metrics include:

Inventory record accuracy can be expressed as:

The definition of “correct” must be specified: location only, quantity only, or both. A warehouse can show high picking productivity while having poor inventory accuracy if errors are hidden through substitutions or manual corrections.

Performance should be segmented by shift, zone, product class, carrier and order type. Aggregate averages can conceal bottlenecks. A balanced scorecard is preferable to a single utilisation target, because cost reduction that damages service or safety is not operational excellence.

12. Technology, automation and data governance

Warehouse-management systems (WMS) support location control, task assignment, replenishment, wave planning, cycle counting and traceability. Barcode systems are widely used; RFID can reduce line-of-sight requirements in selected applications. Conveyor systems, automated storage and retrieval systems, autonomous mobile robots, pick-to-light and voice systems can reduce travel or improve accuracy.

Technology should follow process requirements. Automation is attractive where volume, repeatability and labour scarcity justify investment. It may be inappropriate where product variety, demand uncertainty or frequent layout change dominates. A business case should include capital cost, maintenance, software integration, training, energy, downtime risk, residual value and change-management cost.

AI and analytics can support demand forecasting, slotting recommendations, dynamic labour allocation, computer-vision checking and predictive maintenance. These applications require reliable master data and governance. An algorithm trained on historical demand may reproduce seasonal bias or fail during a structural market change. Human supervision remains necessary for safety, exceptions and accountability.

13. Evaluating layout alternatives

Layout alternatives should be compared using a weighted, multi-criteria approach. Typical criteria include:

1. travel distance and handling effort;
2. peak throughput and queue performance;
3. storage capacity and accessibility;
4. labour and equipment cost;
5. expansion flexibility;
6. safety and ergonomic quality;
7. inventory accuracy and traceability;
8. resilience to demand and supply variability;
9. energy and environmental impact.

A simple weighted score is:

where S_j is the score of layout j, w_k is the weight assigned to criterion k, and x_{jk} is the normalised performance of layout j on criterion k. Weights should sum to 1 when expressed as proportions. Scores must be normalised consistently, especially because some criteria are “higher is better” and others are “lower is better.” The method supports structured judgement; it does not eliminate uncertainty. Sensitivity analysis should test whether the preferred layout changes when weights or demand assumptions change.

Discrete-event simulation is useful when queues, batching, variable arrivals and equipment interactions are significant. A simulation should be calibrated with observed data and should report confidence intervals or scenario ranges rather than presenting one output as certain. Spreadsheets and scaled drawings remain valuable for early-stage alternatives analysis.

14. Illustrative case: redesigning a regional e-commerce warehouse

Background

A fictional regional distributor processes 3,200 order lines per day, rising to 5,000 during seasonal peaks. Its 4,000 m² warehouse uses dedicated storage, paper-based picking and mixed inbound–outbound staging. Average order cycle time is 18 hours, pick accuracy is 97.8%, and congestion occurs near the dispatch doors.

Problem

Fast-moving items are distributed throughout the building. Replenishment frequently interrupts picking, and completed orders wait in unlabelled staging areas. Management is considering either adding floor space or redesigning the current facility.

Analysis

An order-line analysis shows that 22% of SKUs generate 74% of lines. A travel study finds that pickers spend approximately 46% of observed time walking. Peak dispatch volume is concentrated in a four-hour window. The existing dedicated policy also leaves many locations partially empty because inventory levels vary by season.

Approach and solution

The proposed design uses:

• class-based storage, with high-frequency products in a forward-pick zone near packing;
• reserve pallet storage behind or above the forward area;
• floating locations for selected non-regulated products, supported by barcode scanning;
• separate receiving quarantine and returns zones;
• batch picking for small orders and discrete picking for large or unusual orders;
• route- and carrier-labelled dispatch lanes;
• a replenishment schedule before the principal picking waves;
• a modest conveyor connection between picking and packing rather than full automation;
• cycle counting focused on high-value and high-frequency locations.

A scaled layout also creates a pedestrian-safe route and moves battery charging away from the main dispatch queue. The design is tested for average and peak-day volumes, not only nominal capacity.

Outcome

In the illustrative evaluation, average picker travel falls by 28%, pick accuracy rises to 99.4%, and order cycle time falls to 8 hours under normal demand. Peak performance remains constrained by dispatch staging, so an additional carrier departure and improved appointment discipline are required. The redesign costs less than a building extension but requires master-data cleansing, training and disciplined location scanning.

Learning points

The case demonstrates that layout, policy, technology and operating rules must be changed together. Slotting alone cannot solve dispatch congestion; a new building cannot compensate for inaccurate inventory records; and automation is not a substitute for a clear process. The best solution is the one that improves the complete system under realistic peak conditions.

15. Challenges, governance and sustainability

Warehouse operations involve safety and ethical responsibilities. Designers must comply with applicable fire protection, building, occupational safety, lifting, hazardous-material and food or pharmaceutical regulations. Risk assessment should address vehicle–pedestrian interaction, rack stability, falling objects, manual handling, battery charging, emergency evacuation, temperature exposure and fatigue.

Data governance is also important. Location and inventory records influence customer promises, financial reporting and traceability. Access controls, audit trails and segregation of duties reduce the risk of unauthorised adjustments. Worker-monitoring technologies should be transparent, proportionate and consistent with privacy and employment law; productivity data should not encourage unsafe speed.

Sustainable design includes efficient lighting, reduced empty travel, right-sized packaging, reusable handling units, energy-efficient equipment, renewable energy where feasible and reverse-logistics capability. Cube utilisation should not be pursued by creating unsafe or inaccessible storage. A life-cycle view is preferable to a narrow purchase-price comparison.

Best-practice checklist

• Design from peak flow and service requirements, not annual averages alone.
• Separate incompatible, hazardous, returned and quarantined materials.
• Use a clear location-identification standard and maintain master data.
• Place high-frequency items close to the point of consolidation, subject to safety and ergonomics.
• Match picking method to order profile rather than adopting fashionable technology.
• Provide staging capacity and control it by carrier, route and departure time.
• Measure travel, queues, accuracy, safety and service together.
• Validate alternatives with scaled layouts, sensitivity analysis and, where needed, simulation.
• Reserve space and systems capacity for growth, seasonality and disruption.
• Review slotting and storage policies periodically as demand changes.

Chapter Summary

Warehouse design integrates receiving, put-away, storage, replenishment, picking, packing, cross-docking and dispatch into one coordinated material-flow system. Effective layouts balance accessibility, density, travel, throughput, safety, flexibility and cost. U-shaped, through-flow, L-shaped and hybrid arrangements each have appropriate applications.

Capacity planning must distinguish storage positions, usable area, gross area and usable volume. Space utilisation is meaningful only when its definition is explicit and when safety and accessibility are protected. Dedicated, floating, class-based and affinity storage policies involve different trade-offs between control, density and travel.

Slotting should consider pick frequency, cube, mass, affinity, replenishment, ergonomics and regulatory constraints. Picking methods include discrete, batch, zone, wave and goods-to-person systems. Cross-docking can reduce storage but requires synchronised inbound and outbound information and schedules.

Warehouse performance should be assessed through service, accuracy, speed, productivity, capacity, safety and cost measures. WMS, scanning, automation, robotics and AI can improve operations, but only when supported by reliable data, sound process design and appropriate governance. Layout alternatives should be evaluated with multi-criteria analysis, sensitivity analysis and simulation where variability and congestion are material.

Key Terms

Warehouse: Facility that coordinates receipt, storage, handling and dispatch of materials.

Receiving: Process of unloading, checking and accepting inbound goods.

Put-away: Movement of received goods to assigned storage locations.

Reserve storage: Storage holding replenishment inventory in larger quantities.

Forward pick: Accessible area containing stock for routine order picking.

Slotting: Assignment of products to warehouse locations.

Dedicated storage: Policy assigning fixed locations to specific products.

Floating storage: Policy assigning any suitable available location.

Class-based storage: Policy grouping products by access or handling class.

Staging: Temporary holding before a process or shipment.

Order picking: Retrieval of products required for an order.

Batch picking: Picking for several orders in one consolidated trip.

Zone picking: Allocation of pickers or tasks to defined warehouse zones.

Cross-docking: Transfer from inbound to outbound flow with minimal storage.

Space utilisation: Ratio of effectively used space to available space.

Cube utilisation: Use of available three-dimensional warehouse volume.

FEFO: First-expired, first-out inventory issue rule.

Warehouse-management system: Information system controlling warehouse inventory and tasks.

Throughput: Completed units processed per unit of time.

Order cycle time: Time from order release to the defined fulfilment completion point.

Review Questions

Short Answer Questions

1. Distinguish reserve storage from forward-pick storage.
2. Why can high space utilisation be undesirable?
3. State two conditions that support successful cross-docking.
4. What is the purpose of slotting?
5. Differentiate FIFO and FEFO.

Long Answer Questions

1. Compare U-shaped and through-flow warehouse layouts, including their advantages and limitations.
2. Explain how demand frequency, product cube, ergonomics and replenishment affect slotting decisions.
3. Discuss the main picking methods and identify suitable operating conditions for each.
4. Explain how receiving, staging and dispatch areas should be designed for peak demand.
5. Evaluate the role and limitations of warehouse automation and AI.

Analytical / Application Questions

1. A warehouse requires 6,000 pallet positions and achieves a storage density of 1.5 positions per square metre. Calculate the storage-block area and explain what additional factors are needed before selecting a building size.
2. Design a storage and picking policy for a distributor with many low-volume SKUs, a small group of fast-moving SKUs, seasonal demand and strict expiry-date control.
3. Compare two proposed layouts using service, travel, capacity, safety, flexibility and cost criteria. Explain how you would normalise criteria and test whether the recommendation is robust.

Multiple Choice Questions with Answers

Question 1

Which storage policy generally provides the greatest location flexibility but requires accurate real-time records?

A. Dedicated storage

B. Floating storage

C. Fixed sequence storage

D. Quarantine storage

Correct Answer: B. Floating storage

Question 2

A warehouse requires 4,800 pallet positions and provides 1.6 positions per square metre. What storage-block area is indicated?

A. 2,400 m²

B. 3,000 m²

C. 4,800 m²

D. 7,680 m²

Correct Answer: B. 3,000 m²

Question 3

Which inventory issue rule is most appropriate when expiry dates differ among units?

A. LIFO

B. Random issue

C. FEFO

D. Largest-quantity-first

Correct Answer: C. FEFO

Question 4

What is the principal purpose of a forward-pick area?

A. To hold damaged goods permanently

B. To store replenishment inventory in bulk only

C. To provide accessible stock for routine order picking

D. To receive vehicles before inspection

Correct Answer: C. To provide accessible stock for routine order picking

Question 5

Which picking method retrieves items for several orders in one trip and sorts them later?

A. Batch picking

B. Discrete picking

C. Single-zone picking

D. Direct put-away

Correct Answer: A. Batch picking

Question 6

Cross-docking is most suitable when:

A. Inbound allocation and outbound timing are well coordinated

B. All products require long-term storage

C. Inventory identification is unavailable

D. Outbound departures are highly unpredictable

Correct Answer: A. Inbound allocation and outbound timing are well coordinated

Question 7

If five packing stations each sustainably process 18 orders per hour, what is their nominal combined capacity?

A. 23 orders per hour

B. 90 orders per hour

C. 180 orders per hour

D. 360 orders per hour

Correct Answer: B. 90 orders per hour

Question 8

Which metric directly measures the correctness of recorded warehouse locations or quantities?

A. Inventory record accuracy

B. Gross floor area

C. Dock frontage

D. Vehicle utilisation

Correct Answer: A. Inventory record accuracy

Question 9

Why should layout alternatives be tested under peak conditions?

A. Peak conditions always represent average demand

B. Peak flow determines congestion, staging and capacity requirements

C. Peak testing eliminates the need for safety analysis

D. Peak conditions reduce variability

Correct Answer: B. Peak flow determines congestion, staging and capacity requirements

Question 10

What is a major limitation of pursuing maximum storage density?

A. It necessarily increases product variety

B. It can reduce accessibility and increase travel or safety risk

C. It eliminates the need for slotting

D. It prevents the use of inventory records

Correct Answer: B. It can reduce accessibility and increase travel or safety risk