In chaotic warehousing or dynamic warehousing, the item is not assigned a fixed storage location, but moves around the warehouse during storage.
The storage bins are digitally recorded and marked in the merchandise management system. It is analyzed in which storage location the item can be stored. The merchandise management system then recognizes where the article is located. Here it is important that the enterprise resource planning system can work automatically.
Advantages of chaotic warehousing:
- Warehouse is stocked faster
- Empty spaces are avoided
- Higher space utilization
- Articles are transported to the storage location in a time-saving manner
- Pickers have more space
- Customer orders and purchasing processes can be simplified
Disadvantages of chaotic warehousing:
- Complicated accounting
- Problems can occur in the event of a system failure
- Items can be lost
- High acquisition costs