A designated storage area within a warehouse where bulk inventory is kept in larger quantities, typically in higher storage locations or less accessible areas. Reserve storage serves as the primary inventory holding zone that feeds into forward pick locations when stock levels drop below predetermined thresholds.
This storage strategy is critical for maintaining operational efficiency by separating high-volume storage from active picking operations. Reserve areas typically house products in full cases, pallets, or bulk quantities, while forward pick locations contain smaller, more manageable quantities for order fulfillment. This separation prevents congestion in picking aisles and optimizes space utilization by storing bulk inventory in areas with higher storage density.
For example, a clothing retailer might store 500 units of a popular shirt style in reserve storage on high racking, while maintaining only 50 units in forward pick locations at ground level for easy access during order picking operations.
