Warehouse Layout Optimization Based on ERP-Driven Modeling: A Case Study from the Wood Industry

Abstract

In the wood industry, warehouse layout decisions have a strong impact on production efficiency and workplace safety. This study presents a methodology that combines ERP-based historical movement data with measured process times to evaluate alternative warehouse layout versions. As a first step, products were grouped, their packaging and storage types were identified, and stock demand was calculated based on average and percentile values. A movement model was then used to assess layout options based on measured handling times and transport distances. Four layout versions were presented to the company management. For each version, the total daily net material handling time and required storage capacity were determined. The results showed that the originally planned block storage layout (V2) had a medium handling time and good feasibility but raised safety concerns. The V4 layout provided the most balanced option in terms of safety and capacity, while the finally selected V3 version—with a 4-meter aisle width—offered the lowest total handling time, which was a priority due to high production volume and fast warehouse servicing needs. This research demonstrates how can the Excel-based numerical modeling built on ERP data and process measurements, support warehouse layout decisions and improve operational performance and strategic planning.