Density usually trades against selectivity
High-density systems can reduce aisle space or store pallets multiple positions deep. The operational question is whether the inventory profile supports that trade. Large quantities of the same SKU may fit better than a long tail of single-pallet SKUs.
Rotation rules matter
Some systems naturally support first-in/first-out movement while others may be better aligned with last-in/first-out flows. Product age, lot control and expiry requirements should be part of the evaluation.
Handling complexity matters
Deeper storage can add moves or require specialized equipment and disciplined lane management. A nominal increase in pallet positions should therefore be tested against labour, travel, replenishment and error impacts.
Engineering is system-specific
Rack design, loads, anchoring, protection, floor conditions and clearances are not DIY calculations. Use manufacturer and qualified professional information for any actual installation or modification.
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.