Slotting criteria that firms can use to group inventory in a warehouse include product demand and:
Slotting criteria that firms can use to group inventory in a warehouse include product demand and:
Slotting criteria in a warehouse is primarily used to optimize storage and improve efficiency in the picking process. Two of the main criteria firms use are product demand, which ensures that high-demand items are more accessible, and cubic dimension, which involves considering the physical size and space required for different products. This helps in organizing the warehouse in a way that maximizes space utilization and accessibility. Therefore, in addition to product demand, cubic dimension is a critical factor in slotting criteria.
The correct answer is actually B. customer segmentation. While product demand and cubic dimension are indeed important factors in slotting criteria, customer segmentation is also a crucial consideration. Customer segmentation involves categorizing customers based on factors such as purchasing behavior, preferences, and needs. By grouping inventory in a way that aligns with different customer segments, firms can optimize their warehouse operations to better meet the specific requirements of each segment. This can include considerations such as proximity to shipping areas, grouping related products together for easier access, or ensuring that high-value items are stored securely. Therefore, customer segmentation is an important slotting criterion alongside product demand and cubic dimension.