Final answer:
Efficient product placement in a warehouse requires that fast-moving items be kept in dedicated slots for ease of accessibility and reduced retrieval time, aligning with principles that factor in transportation costs and overall efficiency.
Step-by-step explanation:
One of the principles of efficient product placement in a warehouse is that fast-moving items should be placed in dedicated slots. This is to ensure that popular products are easily accessible and can be quickly retrieved to fulfill orders efficiently. Contrary to placing fast-moving products in remote storage areas, the ideal placement minimizes the distance that workers and materials need to travel, thus reducing the time and costs associated with picking and shipping.
Location models such as Alfred Weber's Least Cost Location Model help underline the importance of considering transportation costs when siting warehouses and factories. Having a location with easy access to transport, like uncrowded freeways, can significantly decrease costs and improve efficiency. Amazon, for instance, operates huge warehouses in low-rent locations, rather than expensive retail spaces, allowing the company to benefit from economies of scale and keep inventory costs low.