A location has an opportunity cost
Every position occupied by inventory with little expected demand is unavailable for active stock. That can force new receipts into overflow even though total inventory value appears manageable.
Age by location and quantity
An aging report is more useful for capacity when it shows physical units, pallets or cube—not only financial value. Low-value bulky stock can consume significant warehouse space.
Disposition decisions are cross-functional
Finance, sales, operations and product teams may need to agree on markdown, return, recycling, donation or other disposition routes. Capacity pressure can be made visible as part of that decision.
Avoid hiding the problem
Moving obsolete stock to an unlabeled corner or external warehouse does not eliminate the carrying and handling cost. Track it as a deliberate category with an owner and review date.
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.