Methods of stock location

Methods of stock location

They include

  1. Fixed location
  2. Random /floating location
  3. Zonal location

Fixed location

A location assigned to a specific item .the item is always stored that location in other word materials are assigned a permanent location in a warehouse. The storage system is more or less static

The code number of the materials stocked is usually the basis for the determination of the location of each item e.g. books in the library.


  • It’s easier to locate materials if they have a specific place assigned for them
  • You can map out your warehouse and create a home for all your products
  • It provides for good organization
  • It is easier to train employees on stock retrieval.

Disadvantages of fixed location.

  • Space. For many fixed-position layouts, the work area may be crowded so that little storage space is available. This also can cause material handling problems.
  • Administration. Oftentimes, the administrative burden is higher for fixed-position layouts. The span of control can be narrow, and coordination difficult.

Random /floating location

It is a location system where goods are stored whenever there is an appropriate space for them

A random location system is used to store the different types of stock with the help of computer applications.

Advantages of random location

  • Suitable for fast moving items eg assemblies’ shops and work in progress stores.
  • Enhances space utilization
  • Time spent searching for material-handling tools is reduced.
  • Inventory management is made easier.

Disadvantages of random location

  • Requires accurate and up to date information on items location and the availability of empty storage space.
  • Reference to the computer to determine location of an item is necessary before an issue can be made.
  • There must be frequent data entry that is time consuming.


Zonal location

Its where the warehouse is broken down into zones each defining specific characteristics of a location

Zonal may be created by grouping related items /parts together,
Package sizes –can be arranged in a way that you put the items with large packaging at the bottom Ordering –place items according to the way they have been ordered or are usually ordered


  • Is easier to locate a product
  • Its flexible
  • Both memory and logic are the basis for finding a product
  • A material handler can determine where a product might be kept


Features of a good stock location

  1. Simplicity: Keep it simple should be easy to operate
  2. Security: it should be in a such a way that all the materials are secured together with those handling the
  3. Permanent: a location system with permanence allows you to have high quality labels that do not have to be replaced when the physical building or storage equipment change
  4. Flexibility:
  5. Expandable

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