Location Assignment and Methodology

The location code is very valuable for preventing lost sales.  Parts  which are used infrequently may become lost as they are pushed to the  back of a shelf.  However, when the operator knows the location of  the part, they can be quickly moved to prevent this needless expense.

Frequently, shop owners will search briefly for an item they believe  is in stock, and then order a new one rather than waste more time  searching.  This creates a problem because funds are then tied up  unnecessarily in unmoved stock.

Location codes may be developed  quite simply.  The first letter represents the general area of the  shop, which may be a wall, shelf unit, storage shed, or office.  These areas should be labeled clockwise on a floorplan.  You may have  shelving units, wall locations, storage bins, or even a special  warehouse.

The second letter represents the position in the section  (ie. L for left, M for middle, and R for right).

The final element  of the code might be the shelf number.  A part with allocation code  of FM3 would be on shelf F, middle section, third row from the top.

The location codes should be established in a manner which is most  logical for the actual shop layout.  It is very important to  implement these codes for effective shop management.