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What Is Pallet Velocity?

Pallet velocity is the rate at which pallets cycle through a warehouse or supply chain, calculated as annual pallet movements divided by average pallet inventory.

Resource: Encyclopedia
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Pallet velocity is the rate at which pallets cycle through a warehouse or supply chain, calculated as annual pallet movements divided by average pallet inventory.

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Definition

Pallet velocity is the rate at which pallets cycle through a warehouse or supply chain, calculated as annual pallet movements divided by average pallet inventory.

Detailed Explanation

High velocity = pallets cycle quickly (ecommerce: 50+ cycles/year). Low velocity = slow turnover (long-term archival storage: 1-2 cycles/year). Typical retail DC: 20-30 cycles/year per pallet.

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