Start with the relevant cost pool
Depending on the decision, the numerator might include occupancy cost, rack lease or depreciation, utilities, maintenance, insurance, handling equipment and labour. The correct cost pool depends on what you are comparing.
Use usable positions
Dividing by theoretical positions can make capacity look cheaper than it really is. For operating comparisons, usable or average available positions may provide a better denominator.
Compare service as well as cost
A denser layout may reduce property cost per position while increasing travel, replenishment or handling complexity. The lowest storage cost is not always the lowest total operating cost.
Make assumptions visible
The calculator lets users enter their own annual cost and position count. It is intended to support scenario comparison, not provide market-price estimates.
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.