Inventory Throughput is Key for E-Commerce Warehouses

Inventory Throughput is Key for E-Commerce Warehouses

August 1, 2020

The rise in e-commerce has been accelerated by the COVID-19 pandemic.

E-commerce requires three times the warehouse space over brick-and-mortar retail operations.  A real key to managing a warehouse efficiently is inventory throughput.  Wayfair, for example, focuses on throughput and uses a chase demand strategy to staff warehouse operations to obtain efficiency.


Video Spotlight:


This post is based on the Supply Chain Dive article, Prologis: Demand for warehouse space will rise alongside e-commerce growth, by Matt Leonard, June 18, 2020, and  the YouTube videos in the Spotlight. Image source: vitpho/123RF

Discussion Questions:

1.  Wayfair uses a chase demand strategy to staff the warehouse operations.  What other aggregate planning strategies could Wayfair employ?  Is the chase demand strategy the better option?  Why or why not?

Guidance: Students should consider all the aggregate planning strategies in the textbook.  Lead the discussion by Continue reading

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