Empty space can be productive
A completely full location system has little room to move inventory around. Free positions can support put-away, stock rotation, consolidation, cycle counting and recovery from exceptions.
The right cushion varies
Stable bulk inventory may tolerate a different occupancy level from a highly seasonal, SKU-rich ecommerce operation. Storage technology, replenishment frequency and inbound variability also matter.
Measure peak congestion
If travel lanes, staging areas or temporary floor locations fill before storage locations do, the constraint may be process space rather than rack capacity. A single occupancy percentage will not show this.
Treat cushion as a service decision
Capacity headroom has a cost, but so do overtime, double handling, overflow moves, delayed receiving and reduced throughput. The useful question is what level of headroom supports the desired service and operating cost.
Practical questions
Should I use one utilization percentage for every warehouse?
No. Inventory profile, storage system, seasonality, staging demand, handling equipment and workflow can make the same percentage perform very differently in two facilities.
Can this guide be used to approve a rack or building change?
No. It is a planning resource. Structural, fire, building, accessibility and workplace-safety requirements must be established for the actual facility by the appropriate qualified parties and authorities.