Warehouses are used to store goods on a temporary basis until they are sold or supplied to the customers, whether they are internal or external. Therefore, the objective of a warehouse is to move goods in and out as efficiently as possible.
The internal layout of the warehouse is determined by the flow of material. There should never be an instance where material is being moved in opposite directions at the same time.
Flow considerations include:
- Goods receiving
- Inventory storage
- Inventory retrieval
- Picking operations
- Packing operations
- Order consolidation
- Despatch
There are two common warehouse layouts:
Straight Line Flow
Straight line flow, as illustrated in Figure 1 is appropriate for warehouses that have two entrances. It enables material to flow in a straight line through the warehouse to coincide with usage and shipping times.

Figure 1: Straight-Line Flow Layout
U-Shaped
For warehouses with both entrances on the same side of the building, a U-Shaped layout is appropriate. Within this type of material flow pattern, as illustrated in Figure 2, the materials move into storage at the back of the warehouse and are issued out and shipped through an area adjacent to the receiving.

Figure 2: U-Shaped Layout
Both layouts attempts ensure that access to goods is maximised, handling is minimised and goods flow in the same direction through the warehouse.